Oh Se-hoon, the Mayor of Seoul, emphasized the need to revitalize redevelopment and reconstruction projects, highlighting their potential impact on housing supply. He criticized the previous administration's New Town exit strategy as a 'hostile policy' towards redevelopment and reconstruction.
During a residents' meeting at the Cheongpa 2 redevelopment association office in Yongsan on August 11, Oh stated, "The Seogye and Cheongpa areas are home to several redevelopment zones and a combined town. We expect to supply 8,088 housing units, with a net increase of about 26.5% after accounting for demolitions."
He noted, "Statistics from the city indicate that reconstruction will increase housing supply by 44%, while redevelopment areas will see a 27% increase. This is a place where we can empirically demonstrate the increase in housing supply through redevelopment."
Oh explained his visit to Cheongpa-dong by referencing recent comments from President Lee Jae-myung, who seems to acknowledge the increase in housing supply from reconstruction but does not recognize it for redevelopment. He expressed confidence in presenting accurate statistics showing a 26.5% increase in housing supply through redevelopment in these areas.
Currently, seven private redevelopment projects, including rapid integrated planning and combined towns, are underway in the Seogye and Cheongpa-dong areas. Excluding the Cheongpa 3 district, where the number of units has yet to be confirmed, the other six projects are expected to increase from 6,393 to 8,088 units, resulting in a net gain of 1,695 units, even assuming all existing homes are demolished.
This area had seen stagnation in redevelopment projects after the 2012 New Town exit strategy shifted focus to urban regeneration. The Seoul city government is now pushing forward with redevelopment projects through rapid integrated planning and combined towns. Oh referred to the New Town exit strategy as a 'hostile policy' towards redevelopment and reconstruction, reiterating the necessity of these projects.
However, the government has pointed out that the demand for relocation arising from the expansion of redevelopment projects could stimulate the rental market. This is due to the potential for existing homeowners and tenants to relocate, temporarily concentrating housing demand in specific areas.
Oh argued that the market impact from relocation demand can be managed through timing adjustments for each project. He stated, "Once the management disposal approval is granted, relocations will begin, and it is inevitable that this will stimulate surrounding rental prices. However, looking at statistics from the past decade, even with 20,000 to 30,000 relocations per year, Seoul has sufficient buffer zones to accommodate this demand."
He added, "The current plan indicates that 85,000 housing units could begin construction by 2028, and the annual relocation demand at that time is expected to slightly exceed 20,000 units. We can effectively minimize adverse effects through timing adjustment systems."
Meanwhile, Oh expressed opposition to utilizing the Yongsan Children's Garden for housing supply. He emphasized, "Preserving Yongsan Park entirely as green space to create an urban forest is a principle of urban planning, regardless of political ideology. It is difficult to understand the rationale behind using hard-won green space for housing construction."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.