Apgujeong Hyundai Apartment complex in Gangnam-gu, Seoul (Naver Real Estate)

Seoul’s iconic yet aging Apgujeong Hyundai Apartments, located in the heart of Gangnam, look likely to be replaced by a towering residential complex, rising up to 70 floors, under an urban planning plan approved by the city government.

According to the Seoul Metropolitan Government on Tuesday, the city’s Urban Planning Committee approved an eased maximum floor ratio of 300 percent for residential complexes aged over 50 years in the southern Seoul districts, including Apgujeong Hyundai, during a meeting Monday.

The FAR is a key metric in urban planning that indicates how tall a building can be constructed on a given plot of land. It is the ratio of a building’s total floor area -- the sum of the floor space across all levels of the building -- to the size of the land it occupies.

With a 300 percent floor ratio approved, the owners of Apgujeong Hyundai Apartment homes can now move forward with their plans to build 12 new apartment buildings standing as high as 250 meters, taller than Yeouido’s iconic 63 Building which stands 249 meters above ground. The new complex will feature a total of 2,606 apartment units.

Also given the green light for reconstruction with a 300 percent floor ratio include the Seocho Jinhyung Apartments and Bangbae Sin Samho Apartments.

Expectations for the reconstruction of old homes in Seoul’s most coveted residential areas have fueled market optimism, causing the prices of Apgujeong Hyundai units to surge.

A five-bedroom unit with a floor space of 183 square meters in Apgujeong Hyundai was sold for 8.15 billion won ($5.81 million) on October 16, 500 million won higher than its previous record price, according to data from the real transaction price disclosure system run by the Ministry of Land, Infrastructure and Transport.