Seoul has assessed that the de-designation of past redevelopment zones and a focus on preservation have weakened the foundation for housing supply. The city plans to initiate construction on 310,000 homes by 2031 through revitalizing redevelopment projects.
On October 16, the city announced the upcoming release of a white paper titled 'Evaluation and Reflection on 20 Years of Seoul Housing Supply Policy,' which analyzes housing supply policies over the past two decades.
The white paper highlights the reduction in housing supply opportunities due to the de-designation of redevelopment zones and notes that the financial input for urban regeneration projects has not yielded satisfactory results. It also emphasizes the achievements of revitalization policies implemented since 2021.
According to the city, from 2012 to 2020, approximately 57% of the 683 total redevelopment zones in Seoul were de-designated, resulting in the loss of about 430,000 housing opportunities. Currently, redevelopment projects are being revived in 177 of the de-designated areas. The city concluded that the de-designation failed to address the demand for improving living conditions in aging residential areas.
The city also pointed out instances where the process of gathering resident opinions during the de-designation was inadequate. Of the 389 de-designated areas, 66 were done without resident surveys, while 264 underwent surveys but had procedural issues. The remaining 59 areas included cases where residents wanted to proceed with projects but were de-designated due to sunset provisions.
Notably, seven zones in the Changsin-Sungin redevelopment promotion district and the Sajik 2 zone were de-designated without resident surveys. In the Jangwi 15 zone, the postal delivery process for some landowners was not properly executed, and in the Sin-gil 1 zone, resident voting participation was only 12%, according to the city.
The city analyzed that these policy changes have also impacted the decrease in construction volumes for redevelopment projects. The average annual construction volume in Seoul dropped from 29,000 homes between 2016 and 2020 to 15,000 homes from 2021 to 2025, a decline of about 48%. The city explained that the significant time required from designation to construction means the effects of past de-designations and reduced new designations are only now becoming apparent.
The evaluation also included assessments of past urban regeneration policies. The city reported that approximately 911 billion won was invested in urban regeneration projects and about 185 billion won in residential environment improvement projects, totaling 1.96 trillion won. The city noted that some areas transitioned back to redevelopment projects after urban regeneration efforts, leading to decreased efficiency of previous financial inputs.
Since the inauguration of Mayor Oh Se-hoon in 2021, the city has also included policies aimed at easing regulations and expanding the supply base for redevelopment projects in the white paper.
The city has improved the designation process for redevelopment zones by abolishing the residential maintenance index system and introducing rapid integrated planning. It has also eased conditions for project implementation through adjustments to profitability coefficients and recognition of current floor area ratios. Since 2022, the city has been promoting the 'Moa Housing' and 'Moa Town' projects targeting aging low-rise residential areas where large-scale redevelopment is challenging.
As a result, the number of newly designated redevelopment zones from 2021 to 2025 reached 172, more than double the 77 zones designated in the previous five years from 2016 to 2020. However, the city noted that further procedures, such as establishing associations and obtaining project implementation approvals, remain before these designations lead to actual construction or occupancy.
Seoul plans to promote the construction of 310,000 homes by 2031 through shortening the approval period for redevelopment projects, improving project viability, and ensuring fair management.
Myung No-jun, acting head of the Seoul Housing Office, stated, "We aim to document and analyze past cases with accurate statistics and evidence to avoid repeating the same mistakes. The white paper was prepared to inform citizens about the causes of the current supply shortage and to suggest directions for the development of Seoul's housing supply policy."
* This article has been translated by AI.
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