Seoul City Under Oh Se-hoon to Accelerate Private Redevelopment and Reconstruction

Momentum for Expanding Housing Supply Through Eased Floor Area Ratios and Streamlined Licensing

Profitability of Outlying Redevelopment Projects Expected to Improve with Diverse Incentives

With Oh Se-hoon's successful third consecutive term as Seoul Mayor, private redevelopment projects, which are a key source of housing supply in Seoul, are expected to gain momentum.

Mayor Oh made expanding private sector-led housing supply for price stabilization a core campaign pledge. Through this, he set a target of initiating construction of 310,000 housing units across Seoul by 2031.

Seoul Mayor-elect Oh Sehoon announced his real estate pledges last month at the Daerim 1 District redevelopment site in Yeongdeungpo-gu, Seoul. Photo by Yonhap News Agency

The main reason behind his victory, which defied earlier predictions of a disadvantage, appears to be the overwhelming support he received in the three Gangnam districts — Gangnam, Seocho, and Songpa — where large-scale reconstruction projects are concentrated.

The central policy for expanding redevelopment projects is the "Fast-Track Integrated Planning 2.0" (Shintong Planning). This policy involves the city government intervening from the early stages of redevelopment projects to shorten licensing procedures and support easing of floor area ratio regulations.

Mayor Oh, in particular, believes that the success or failure of market stabilization depends on speed. To this end, he plans to designate core redevelopment zones and support relocation and groundbreaking for 85,000 units within three years, as part of the overall supply plan. For redevelopment associations facing difficulties due to government lending regulations, he also proposed providing relocation funds through the city's Housing and Urban Fund.

Redevelopment projects in outlying areas, which have so far been sluggish due to lower profitability, are also expected to gain traction. Mayor Oh has announced plans to revitalize redevelopment and reconstruction in outer districts such as Gangbuk and the southwest region by offering various incentives, including upgrades in zoning, application of profitability adjustment coefficients, and relaxation of height restrictions.

"Youth and newlyweds" are also important keywords in Mayor Oh's housing policy. He pledged to supply 4,000 units each year of "Mirinae Jib," a long-term rental housing program for young people preparing for marriage and childbirth.

However, there are growing concerns that discord with the central government over major real estate policies will intensify.

Previously, Mayor Oh strongly opposed the government plan to increase the housing supply in the Yongsan International Business District from 8,000 to 10,000 units. He argued that, as the district represents Seoul's future blueprint, it should not merely be used as a housing supply source. He also opposes the government's housing price regulation measures, such as the exclusion of long-term capital gains tax deductions for non-resident single-home owners.

This content was produced with the assistance of AI translation services.