The ongoing disagreement between the government and Seoul City regarding housing supply at Yongsan Park has brought the alternative site at Tancheon and the relaxation of private development density regulations back to the negotiation table. Both proposals have been discussed in the past, raising questions about whether they will lead to actual housing supply this time.
According to the real estate industry on August 27, the Seoul City government has proposed to the Ministry of Land, Infrastructure and Transport to relocate the Tancheon Water Reclamation Center in Gangnam's Ilwon-dong and develop 10,000 to 13,000 units of youth housing along with facilities for the physical AI industry, linking it with the Eastern Road Office and the Seoul Trade Exhibition Center (SETEC). The Ministry of Land has agreed to review the related materials.
Discussions about development in this area have been ongoing for a decade. Since 2014, Seoul City has attempted to develop the area around SETEC and the Eastern Road Office, but plans have repeatedly changed or been put on hold. In 2016, a mixed-use development aimed at enhancing the aging exhibition center was proposed, and in 2018, the Eastern Road Office was included as a site for public housing supply, leading to the suspension of previous plans.
Seoul City later expanded the development scope to include the confluence of the Yangjaecheon and Tancheon rivers. A master plan study for the confluence area was completed in 2024, and a feasibility study for relocating the water reclamation center is currently underway. This time, the plan aims to develop the area as a hub for physical AI and youth housing.
However, challenges remain regarding the relocation of facilities and the financial burden of the project, which have hindered past initiatives. The relocation of the water reclamation center is essential for development, but identifying a suitable alternative site is proving difficult. Minister of Land, Infrastructure and Transport Kim Yoon-deok stated, "Selecting a new site for the Tancheon Water Reclamation Center is also challenging," as discussions on related issues continue.
Before the proposed supply of 10,000 to 13,000 housing units can be realized, the issues surrounding the relocation site and funding must be resolved. Seoul City plans to utilize the Eastern Road Office and SETEC sites to secure project financing and attract private investment.
Nam Hyuk-woo, a researcher at Woori Bank's real estate research institute, noted, "It seems unlikely that housing supply on the Tancheon Water Reclamation Center site will happen in the short term, but compared to the Yongsan Park project, which requires legal amendments, I believe this can be pursued more swiftly."
The relaxation of density regulations is not a new solution. During the 2022 presidential election, a proposal was made to establish a new 'Type 4 General Residential Area' that would allow density to increase up to 500%. In the August 2024 supply plan, the government also proposed increasing density for redevelopment and reconstruction to expand urban supply.
In May of this year, Seoul City raised the legal maximum density for urban regeneration-type redevelopment in the reorganization promotion district by up to 1.2 times. The maximum density for semi-residential areas has been increased to 600%, while general commercial areas can now reach 1,560%. This time, the city aims to extend similar exceptions to private redevelopment to increase supply.
Seoul City believes that allowing a density of 1.2 times the legal maximum for private redevelopment will increase the net housing supply from redevelopment projects. However, issues related to public contributions and securing rental housing standards, as well as amendments to urban regeneration laws, must also be addressed.
Seoul City explained that the Ministry of Land has shown a willingness to positively consider the relaxation of density regulations for private redevelopment projects.
However, the Ministry of Land has drawn a line on broad interpretations. A ministry official stated, "There has been no decision on the review direction regarding the relaxation of private redevelopment density by 1.2 times."
* This article has been translated by AI.
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