Only 111 Rentals for 1,092 Households Needing to Move... Emergency for 'Relocation Refugees' in Seoul Redevelopment Projects

Jeonse Supply Shrinks as Prices Surge
Concerns Grow Over Vicious Cycle in Seoul's Housing Market

As the rental housing shortage intensifies, emergency measures are being taken for relocation plans in redevelopment and reconstruction complexes throughout Seoul. In some areas, around 1,000 households need to move, yet there are only a few dozen rental properties available. There are growing concerns that if relocations are delayed, redevelopment schedules will inevitably be disrupted, which in turn could trigger another cycle of rental shortages and further exacerbate the situation. In the second week of June, the rate of increase in Seoul’s rental prices recorded its highest level in 10 years and 8 months.

According to the real estate industry on June 12, residents of Samik Park Apartment in Gil-dong, Gangdong-gu, Seoul, who must move by November for reconstruction, are busy searching for new places to live. Samik Park Apartment consists of a total of 1,092 households. However, rental properties in this area are severely lacking. According to data provider Asil, as of this day, there were only 39 rental listings in Gil-dong and the neighboring Myeongil-dong. Even when including monthly rentals, the total rises to just about 111. Two years ago, this area had 485 rental listings and 346 monthly rentals.

An official at a nearby real estate agency shared, “In just the past two to three months, rental prices have risen from 500 million won to over 700 million won. There are simply no rentals available, leaving residents facing imminent relocation in a difficult position. For a property that was recently listed, four to five people competed for it, and one person signed the contract without even seeing the home.”

The 111 rental and monthly listings are also deemed insufficient to meet the needs of the residents. Another real estate agent explained, “The statistics include basement units and homes that are quite small, so there is a big difference compared to what the relocating residents are used to, resulting in a shortage of desirable properties.”

The rate of increase in Seoul’s rental prices has recently accelerated. According to the weekly report published by the Korea Real Estate Board, in the second week of this month, Seoul’s rental price index rose by 0.32%, marking the largest increase in 10 years and 8 months. The Korea Real Estate Board evaluated that “as demand accumulates, especially around key complexes, more contracts are being signed at higher prices.”

There are concerns that the shortage of rental and monthly listings will leave residents preparing for redevelopment projects with nowhere to go, creating a vicious cycle of delays in housing supply throughout Seoul. A construction industry official noted, “We cannot demolish buildings until residents have relocated, so if the relocation schedule is delayed, project delays become inevitable. When projects are delayed, equipment rental costs, indirect expenses, and other construction costs rise.”

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