Ministry of Land: "Redevelopment of Permanent Public Rental Housing in Seoul to Public Pre-sale Possible by 2028" [Real Estate AtoZ]

The government has initiated measures to address supply instability by redeveloping public rental housing in Seoul. However, even the fastest-moving project is not expected to be available for pre-sale until 2028, with actual move-in projected to occur after 2030.

According to the "Reference Material on Measures to Expand Housing Supply" released by the Ministry of Land, Infrastructure and Transport on September 19, the fastest redevelopment project among aging public rental housing complexes in Seoul is Junggye Complex 1 in Nowon District, which aims to obtain project approval next year. The ministry explained, "It is expected to take about four to five years from project plan approval to resident relocation and the construction and occupancy of new housing," adding, "Junggye Complex 1 is projected to be available for pre-sale starting in 2028."

Even if the project proceeds without any unexpected variables-securing project approval next year and starting construction and pre-sale the following year-actual move-in would only be possible around 2030 or 2031. After redevelopment, the pre-sale units will be supplied at prices lower than the market rate, as they will be subject to the price ceiling system.

Sanggye Madeul Bird's-Eye View Rendering

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The redevelopment of aging public rental housing is one of the measures announced in the September 7 real estate policy package, with a goal of starting construction on 23,000 units in the Seoul metropolitan area by 2030. While the volume is not particularly large, the plan is symbolic as it targets key locations in Seoul. The structure involves increasing the floor area ratio by upgrading the zoning of permanent rental complexes, thereby boosting the supply of additional housing units.

Hagye 5 and Sanggye Madeul complexes in Nowon District received project approval in the second half of last year and are currently in the process of relocating residents. As pilot projects, construction is expected to begin early next year, with completion and move-in projected for 2029, according to the ministry. However, since there will be no increase in the number of housing units after redevelopment for these complexes, there will be no pre-sale units; all will be used as rental housing.

The government also plans to seek redevelopment project approval for Gayang Complex 7 (3,899 units) and Suseo Jugong Complex 1 (3,235 units) the year after next. The ministry stated that it will select about three complexes each year thereafter to begin redevelopment.

Meanwhile, the rent for existing public rental housing tenants who move back in after redevelopment has not yet been determined. The ministry said, "The rent to be set upon re-entry is currently under study. We will strive to minimize the burden, considering that most tenants are from vulnerable housing groups."

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