Seoul City Listened to Voices from Gangnam and Yeouido... Could This Be a Signal for Reconstruction Normalization?

Meeting with Resident Representatives of Jamsil 5, Eunma, Apgujeong, and Yeouido to Review Current Issues
Top Priority Demand is Prompt Normalization... Housing Price Surge is the Problem

Seoul apartment view Photo by Yonhap News

[Asia Economy Reporter Onyu Lim] As the core pledge of Seoul Mayor Oh Se-hoon, 'normalization of reconstruction' has virtually come to a halt due to soaring housing prices and various regulations, Seoul City met with residents of major complexes such as Jamsil 5 Complex, Apgujeong, and Eunma. The meeting aimed to share policy directions and listen to on-site opinions, raising interest in whether the reconstruction of these complexes, which have faced setbacks in project progress, will gain momentum.

According to Seoul City on the 4th, the city held seven meetings with representatives of major complex residents from April 27 to May 25 to review issues by district and gather voices from the field.

The 18 reconstruction districts include Jamsil 5, Eunma, Apgujeong 2, 3, 4, and 5 districts, eight districts in the Yeouido apartment area, and four districts in the Yeouido financial district. These areas have had projects stalled for years due to the government's real estate market stabilization policy and are regions with significant ripple effects on the real estate market.

At the meeting, Seoul City explained the real estate stabilization measures, progress on the district unit plan (draft), and reconstruction policy directions. They also heard about on-site difficulties, problems, and suggestions from resident representatives such as union heads.

Seoul City stated that it will actively support preliminary practical reviews to ensure that the urban planning committee's review opinions, changed residential environments, and household increase plans from the housing supply perspective are reflected in the revised maintenance plans.

Resident representatives, including union heads, made key requests for the reconstruction districts such as △ prompt normalization of reconstruction △ abolition of the 35-floor height limit △ relaxation of the 15-floor standard for the first building along the Han River △ abolition and modification of infrastructure (roads, parks, etc.) △ easing of public facility burden rates △ residents' decision on joint development of small complexes △ relaxation of the non-residential ratio in mixed-use land.

Seoul City expressed its position to thoroughly review the main requests through interdepartmental consultations. It also clearly stated its intention to send a signal for supply expansion while blocking speculative demand, in line with Mayor Oh's housing supply policy principle of 'speedy but cautious.'

However, it remains uncertain when the prompt normalization of reconstruction demanded by resident representatives will be realized. This is because Seoul housing prices, which had been quiet, continue to rise centered on reconstruction complexes, and various regulations such as safety inspections are difficult to ease without the consent of the Seoul Metropolitan Council or the Ministry of Land, Infrastructure and Transport.

Kim Seong-bo, head of Seoul City's Housing and Architecture Headquarters, said, “Investor interest in major reconstruction districts has continued until recently, raising concerns about stimulating the real estate market,” and added, “We ask for residents' understanding and cooperation regarding the cautious project procedures being pursued due to the significant ripple effects of major reconstruction complexes on the market.” He continued, “This meeting can be a starting point for housing supply through large-scale reconstruction complexes that have been stalled so far,” and “We will thoroughly review residents' opinions.”

Mayor Oh proposed 'public planning' as one of the ways to normalize reconstruction without stimulating housing prices. Public planning involves Seoul City participating from the basic planning stage, such as building arrangement and rental ratio, to drastically shorten the usual review period of about five years to less than two years.

At the Seoul Metropolitan Council's policy inquiry on the 29th of last month, Mayor Oh said, “Reconstruction is being explored step by step without stimulating housing prices,” and “Although the start was late, we will proceed at the fastest possible speed through highly useful public planning to shorten the period as much as possible.” He added, “We have started dialogues with residents of large reconstruction complexes such as Eunma and Apgujeong,” and “I have received reports that residents engaged in the dialogue are turning to a stance of watching with expectations.”

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