Riverside Buk-ro Apartments... Feasibility of Real Estate Pledges by Ruling and Opposition Candidates

[Asia Economy Reporter Yoo In-ho] Ahead of the April 7 Seoul mayoral by-election, candidates from both ruling and opposition parties have presented real estate pledges, but market reactions remain negative.

This is because many promises lack feasibility or concrete evidence, making it highly likely that they will remain mere “empty promises.”

Not only opposition parties but also candidates from the ruling Democratic Party are competitively announcing various development pledges.

[Image source=Yonhap News]

Woo Sang-ho, the first Democratic Party lawmaker to declare his candidacy for mayor, proposed covering the Gangbyeonbuk-ro and Olympic-daero highways and building 160,000 public rental housing units on top. Woo also mentioned lifting the 35-floor height limit and easing reconstruction regulations for apartments in the Gangbuk area.

Kim Jin-ae, a member of the Open Democratic Party classified as a pro-government Seoul mayoral candidate, introduced the “Station Area Midtown” pledge. The aim is to increase housing supply in Seoul by revitalizing development around subway stations and other transit hubs.

The opposition candidates’ pledges are also on the level of presidential contenders.

Ahn Cheol-soo, leader of the People’s Party, held a press conference at the National Assembly on the 14th and announced a real estate pledge to supply 746,000 housing units over the next five years, focusing on expanding supply and deregulation. This plan aims to normalize the real estate market over five years, covering not only the one-year mayoral term of this by-election but also the four-year term of the winners in next year’s local elections.

Lee Hye-hoon, former lawmaker and candidate of the People Power Party, also pledged to build apartments for newlyweds by installing eco-bridges over Olympic-daero and other roads. Former People Power Party Secretary-General Kim Seon-dong pledged to supply 800,000 housing units.

Jo Eun-hee, Seocho District Mayor from the same party, announced plans to supply 650,000 new housing units within five years by revitalizing the New Town projects. Jo also proposed undergrounding the aboveground section of Subway Line 2 and integrating development with surrounding station areas. Considering that Seoul’s annual housing supply is about 70,000 to 80,000 units, this volume could be up to ten times higher.

The flood advisory issued on the Han River Bridge in Seoul on the 6th has been lifted. The Han River Flood Control Office of the Ministry of Environment announced on the 7th that the water levels at the Han River Bridge and Daegokgyo points in Seoul continued to decline, leading to the lifting of the flood advisory for the lower Han River areas of Seoul and Seongnam around 9 a.m. As the Han River water levels dropped, major roads in Seoul that had been closed were reopened. The photo shows the view of the Han River from the 63 Observatory in Seoul on the same day. Photo by Kim Hyun-min kimhyun81@

Kim Geun-sik, head of the People Power Party’s Songpa-byeong district committee, proposed relocating Seoul National University of Education in Seocho-dong, Seoul, and building youth housing on the vacated site as part of his real estate measures.

The People Power Party’s emergency committee chairman Kim Jong-in has personally taken charge of real estate issues. On the 13th, Kim proposed pledges opposing the ruling party’s policy direction, including revitalizing redevelopment and reconstruction, securing urban land through relocating railway vehicle depots, abolishing the capital gains tax surcharge, and specifying a cap on official property prices.

Experts view the feasibility of major candidates’ real estate pledges as low. Professor Lee Chang-moo of Hanyang University’s Department of Urban Engineering pointed out, “Building houses on roads or railways currently in use is highly unlikely due to enormous costs.”

A source involved in maintenance projects said, “Housing on roads requires permits and faces significant local complaints, so it is difficult to activate beyond pilot projects. Since the focus is on residential welfare and quality of life, houses on roads are unlikely to contribute to residential welfare and are thought to be merely showy pledges.”

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