Yongsan Development Plan Causes Concern... Adjacent Areas Like Mapo and Dongjak Expect Growing 'Balloon Effect'

President-elect Yoon Suk-yeol is holding a press conference on the relocation of the Blue House presidential office to the Yongsan Ministry of National Defense building at the press conference room of the Presidential Transition Committee, located in the annex of the Korea Financial Training Institute in Samcheong-dong, Jongno-gu, Seoul, on the 20th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Ryu Taemin] With the confirmation that President Yoon Suk-yeol's office will be relocated to the Ministry of National Defense building in Yongsan-gu, Seoul, attention is also focused on the impact this will have on the real estate market in the "Mayongseong (Mapo, Yongsan, Seongdong districts)" area. While some view the development restrictions in Yongsan-gu, where the Ministry of National Defense building is located, as a negative factor, expectations are rising that neighboring areas such as Mapo, Dongjak, and Banpo will benefit.

On the 20th, President-elect Yoon Suk-yeol held his first press conference since the launch of the Presidential Transition Committee at the annex of the Korea Institute of Finance in Samcheong-dong, Jongno-gu, where the committee's office is located, officially confirming the move of the presidential office to Yongsan. Initially, the new office location candidates included the Gwanghwamun Government Seoul Building and the Ministry of Foreign Affairs building, but the announcement confirmed the Ministry of National Defense building as the final choice.

The 'transaction cliff' phenomenon in the housing market is intensifying due to the burden of soaring house prices and the impact of loan regulations by financial authorities. Although the full-scale autumn moving season began after Chuseok, the number of sales transactions is sharply declining as fewer people are willing to buy homes. The photo shows a quiet real estate agency in a densely populated apartment complex in Seoul on the 19th. Photo by Kim Hyun-min kimhyun81@

Concerns have been raised about height restrictions and development limitations resulting from the presidential office relocation. The representative of real estate agency A in Munbae-dong, Yongsan-gu, said, "In Yongsan-gu, expectations for rising housing prices are high due to the abolition of the '35-floor height regulation,' but if the presidential office moves here, not only high-rise buildings but even redevelopment in the area could be blocked, causing the local real estate market to stagnate." Song Seung-hyun, CEO of Urban and Economy, added, "There are many old houses around the Samgakji area aiming for future development, but if regulations are imposed, development projects are expected to stall."

Concerns about worsening traffic congestion are also growing. Professor Ma Gang-rae of the Department of Urban Planning and Real Estate at Chung-Ang University explained, "The area is already congested, causing significant inconvenience to residents. In addition to the presidential office relocation, large-scale housing supply is planned for the Yongsan Maintenance Depot and Camp Kim sites, which will inevitably worsen traffic congestion."

On the other hand, optimistic forecasts are emerging in nearby districts such as Mapo and Dongjak. A representative of real estate agency B in Gongdeok-dong, Mapo-gu, said, "This area is far from regulations such as height and development restrictions, so demand that was heading toward Yongsan-gu is likely to flow here in the future. In fact, there have been many inquiries about purchases related to the presidential office relocation in recent days."

CEO Song Seung-hyun explained, "Personnel stationed at the Blue House are likely to seek high-end housing in nearby areas such as Yeouido, Dongjak, and Seocho-gu, which can be seen as a positive factor for the adjacent real estate markets. This is similar to how high-income demand from those working at the Seocho-dong courthouse flowed into Banpo and Bangbae-dong, driving up housing prices."

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