Changing Seoul Skyline... Rejected Without Harmony with Surroundings and View Rights

The Core of Abolishing the '35-Floor Rule' Is Keeping Floor Area Ratio Unchanged, Allowing Only Height Flexibility
Encouraging 'Tent-Shaped' Structures... Difficult to Pass Review if Creating Visual Discomfort
No Additional Development Gains, but Market Reacts
Expectations for Floor Area Ratio Relaxation After the Presidential Election

The number of districts in Seoul where the average apartment sale price exceeds 50 million KRW per 3.3㎡ has more than doubled in one year. As of November last year, only Gangnam-gu, Seocho-gu, and Songpa-gu among the 25 districts in Seoul had average apartment sale prices exceeding 50 million KRW per 3.3㎡, but last month, Yongsan-gu, Seongdong-gu, Mapo-gu, and Gwangjin-gu were added, making a total of seven districts. The photo shows the view of Seoul apartments from 63 Square. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Kim Hyemin] As Seoul City decided to abolish the apartment floor limit (the 35-floor rule) while creating a new basic urban plan (2040 Seoul Plan), expectations are rising at several reconstruction sites. Some places that had already completed reconstruction designs under the 35-floor limit are now pushing for design changes. However, experts point out that this only allows the apartment height to be adjusted freely while keeping the floor area ratio unchanged. In other words, it does not mean that apartments designed for 35 floors can be extended up to 45 floors to increase the number of households or maximize development profits.

◆ "It is a mistake to think you can build freely now" = With the disappearance of the 35-floor rule, the specific number of floors will be decided through the Seoul City committee review of individual maintenance plans. Designs that do not harmonize with the surrounding area or fail to consider sunlight rights and views can still be rejected. Seoul City has also stated that it will carefully examine these aspects.

In this context, although the floor limit has been removed, the existing policy of a 15-floor limit for the first building along the Han River (the apartment building closest to the Han River) will be maintained. Design proposals that lower the center of the complex and raise the outskirts sharply to create a kind of ‘V-shaped fortress’ are also expected to have difficulty passing the review. Seoul City plans to encourage ‘tent-shaped’ structures by allowing various designs for each complex now that the floor limit is gone. The Acro River Park in Seocho-gu (Shinbanpo 1st reconstruction) has this form, with the center of the complex higher and floors decreasing toward the periphery.

A Seoul City official said, "We plan to exercise flexibility to allow higher floors within the floor area ratio for complex designs that consider the surrounding landscape, contribute to the local community, or include some rental housing for socially vulnerable groups. It is a mistake to think that with the 35-floor rule gone, you can now freely build 68 or 80 floors."

◆ Listings disappear and asking prices rise... Rising house prices remain a challenge = Seoul City explains that since abolishing the 35-floor rule does not increase reconstruction profitability, concerns that it will stimulate house prices are unfounded. However, the actual market atmosphere is moving in a different direction.

In fact, major reconstruction complexes in Apgujeong-dong, Gangnam-gu; Ichon-dong, Yongsan-gu; Gwangjang-dong, Gwangjin-gu; and Jamsil-dong, Songpa-gu are seeing listings disappear and asking prices rise. After the announcement of the 2040 Seoul Plan, a new listing for a 76㎡ unit in Jamsil Jugong Complex 5 in Songpa-gu appeared at 3.15 billion KRW, about 400 million KRW higher than the 2.78 billion KRW actual transaction price in January. Also, a 196㎡ unit in Hyundai 1st Complex in Apgujeong, Gangnam-gu was listed at 8.05 billion KRW, exceeding the previous record price. Although Seoul City explains that removing the floor limit will not increase development profits, it is interpreted that the expectation of reconstruction accelerating has had a positive effect.

There is also a sense of anticipation for the ‘floor area ratio relaxation’ promised by both major presidential candidates. Lee Jae-myung, the Democratic Party candidate, proposed creating a ‘Type 4 residential area,’ while Yoon Seok-youl, the People Power Party candidate, announced plans to raise the floor area ratio up to 500% through zoning upgrades. Reflecting Yoon’s pledge, areas adjacent to Apgujeong Station on Line 3 in the Apgujeong Apartment District of Gangnam-gu could attempt floor area ratio increases. If floor area ratio relaxation is accepted, the barrier of floor limits will disappear, allowing an increase in the number of households and expansion of development profits. A construction industry official assessed, "Depending on the policy direction after the presidential election, the abolition of the floor limit could still contribute to stimulating house prices."

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