Seoul Mayor Oh Se-hoon's Housing Policy Gains Momentum... Supply Achievements Visible, Housing Prices Remain a Challenge

Seohun Oh Extends Term by 4 More Years
Secures Allies Including Ruling Party District Mayors and City Councilors to Strengthen Policies
Challenges Include Delivering Results for New-Tong Plan and Smoothly Resolving Dunchon Jugong Crisis

Mayor Oh Se-hoon, who was elected as the Seoul mayor for the fourth term, is arriving at the city hall main building on the 2nd. Photo by Moon Ho-nam munonam@

[Asia Economy Reporters Kim Hyemin and Hwang Seoyul] With Seoul Mayor Oh Se-hoon successfully extending his term in the June 1 local elections, his signature real estate policies are expected to gain momentum. He has also secured strong allies, with numerous district mayors and city council members from the People Power Party winning their seats.

However, the challenge now lies in delivering results from key priority projects such as the previously promoted Rapid Integration Planning (Sintong Planning). It is also necessary to calm the housing prices that fluctuate whenever redevelopment projects become visible. Attention is focused on whether the Dunchon Jugong incident, which has led to disruptions in housing supply within Seoul, will be resolved smoothly.

Mayor Oh, who returned to work immediately on the 2nd, the day after the election, is expected to focus on turning the real estate policies designed over the past year into reality within his four-year term.

The continuity of real estate policies has been strengthened by Mayor Oh’s re-election. Redevelopment projects such as Sintong Planning, Moa Town, and Win-Win Housing, which have been previously promoted, will gain further momentum. Mayor Oh also pledged during this election to accelerate the implementation of these redevelopment project promises.

Following the '2040 Seoul Urban Master Plan' announced in March, the possibility of constructing ultra-high-rise apartments of 50 floors or more along the Han River has increased. Efforts are also expected to accelerate in reorganizing waterfront spaces linked to large-scale redevelopment projects along the Han River. The fact that district mayors from the People Power Party were elected in all but one of the 11 autonomous districts adjacent to the Han River Belt?including Gangnam-gu, Mapo, Yeongdeungpo, and Yongsan, except Seongdong-gu?reflects this expectation.

Newly added promises from this election, such as supplying high-quality rental housing and integrated development of the Sewoon District, are also expected to gain full momentum. The ruling party’s acquisition of 17 out of 25 autonomous districts in Seoul and a majority of 77 out of 112 seats in the Seoul City Council has further strengthened Mayor Oh’s ability to implement his real estate policies.

However, if the past year was a period of laying the groundwork for housing supply, the next four years will be a challenge to concretize these plans and produce tangible results. Among the real estate policies, the largest in scale, Sintong Planning, must go beyond site selection to create more successful redevelopment and reconstruction cases using the Sintong Planning method. The core of Sintong Planning is the rapid advancement of projects.

At the same time, it is necessary to manage Seoul’s housing prices to prevent overheating. Although housing prices in Seoul have slowed since the second half of last year due to a decrease in sales transactions, some redevelopment complexes and districts have shown signs of overheating again after the presidential election.

Concerns have also been raised about side effects such as rising rents from the new pledge to supply premium rental housing. Professor Im Jaeman of Sejong University’s Department of Real Estate said, "While I agree with improving the quality of public rental housing, the process of covering increased costs may lead to higher rents or worsen Seoul’s fiscal condition."

Another challenge is resolving the Dunchon Jugong incident, where construction has been halted due to conflicts between the union leadership and the construction company, causing disruptions in Seoul’s housing supply. Currently, the Seoul city government has proposed a mediation plan to the union and the construction company, and active mediation is expected with Mayor Oh’s return. During the recent campaign, Mayor Oh stated, "If I return to office with a good election result, I will definitely take care of the Dunchon Jugong reconstruction issue."

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