8 Sites Including Jungnang in Seoul and Michuhol in Incheon Selected as 4th Urban Complex Project Candidates

Total Supply Scale of 11,600 Households... Seoul Gangnam Area Excluded Again

[Asia Economy Reporters Kangwook Cho, Mowon Moon] Eight additional station areas and low-rise residential zones in Jungnang-gu, Seoul, and Michuhol and Bupyeong-gu, Incheon, have been selected as candidates for the ‘Urban Public Housing Complex Project.’ These areas are expected to accommodate 11,600 housing units through high-density development.

The Ministry of Land, Infrastructure and Transport announced on the 26th that out of a total of 81 candidate sites proposed in Jungnang-gu, Seoul, and Michuhol and Bupyeong-gu, Incheon, eight sites were selected as the 4th round candidates for the Urban Public Housing Complex Project: five in Jungnang-gu, one in Michuhol-gu, and two in Bupyeong-gu.

In Jungnang-gu, the target sites are △near Jungnang Station (1,161 units) △near Sagajeong Station (922 units) △near Yongmasan Station (507 units) △near Yongma Tunnel (455 units) △near Sangbong Terminal (1,132 units). In Incheon, three sites were selected as candidates: △near Jemulpo Station (3,104 units) △south of Dongam Station (1,731 units) △near Gulpocheon Station (2,531 units).

The Ministry explained that an analysis of the project effects for the eight candidate sites showed that the floor area ratio is on average 76 percentage points higher compared to pursuing independent development. It added that the number of housing units supplied is also expected to increase by an average of about 396 units (37.8%) per district.

However, the Gangnam area of Seoul, which has been a focus of market interest, was again not included in the candidate sites this time. Previously, the government selected a total of 38 candidate sites in three rounds: 21 in the 1st round, 13 in the 2nd, and 4 in the 3rd. All sites in the 1st and 2nd rounds were outside Gangnam in Seoul, and the 3rd round announced candidates only in regional cities such as Busan and Daegu.

Along with this, the government explained that 12 out of the 38 candidate sites from rounds 1 to 3 have secured the resident consent rate of 10%, which is the requirement for designation as a project district. These include four sites in Dobong-gu, two in Yeongdeungpo-gu, four in Eunpyeong-gu, and two in Gangbuk-gu, mostly from the 1st round candidates as of March 31. Among these, the Ministry added that Eunpyeong-gu’s Jeungsan 4 district and Susaek 14 district have also secured two-thirds resident consent, which is the requirement for designation as a main district. The Ministry evaluated that "the follow-up procedures are progressing faster than expected."

Nevertheless, market concerns remain. The total supply volume combined from all four rounds of candidate site selections so far amounts to only 60,000 housing units. This is just 19.6% of the government’s target of 306,000 units to be supplied through the Urban Public Housing Complex Project under the ‘2·4 Housing Supply Plan.’ In particular, sites that meet the requirements for designation as project districts account for only 6.2% of the overall target.

Resident opposition to candidate site selection is also a variable. For example, in Busan’s Busanjin-gu Jeonpo 3 district, residents have demanded the withdrawal of the candidate site designation.

Professor Shim Gyo-eon of Konkuk University’s Department of Real Estate said, "Public development can be used as a way to fill a niche, but it is difficult for it to play a central role in stabilizing housing prices. Since the public sector has lost trust and Mayor Oh Se-hoon is likely to approach by increasing private development, the government should not rely solely on the public sector but focus on measures to increase private supply as well."

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