Oh Se-hoon: "1,695 Net Increase in Yongsan Proves Urban Renewal Is Seoul's Only Housing Supply Solution"

Seoul Mayor Oh Se-hoon visited the redevelopment and reconstruction sites in the Seogye-dong and Cheongpa-dong areas of Yongsan District today (August 11) to emphasize the housing supply effects of urban renewal projects.

This is interpreted as a direct rebuttal to President Lee Jae-myung, who questioned the housing supply effectiveness of urban renewal projects during the "National Debate on Real Estate Policy" last month.

Seogye-dong and Cheongpa-dong in Yongsan District are typical low-rise residential areas formed when residents who migrated to Seoul in search of jobs during the industrialization and urbanization process of the 1960s settled near Seoul Station.

According to the Seoul Metropolitan Government, seven private urban renewal projects, including Rapid Integrated Planning redevelopment and Moa Town, are underway in this area.

Excluding Cheongpa District 3, where the number of households has not yet been finalized, the remaining six areas will see housing units increase by about 26.5%, from 6,393 existing households to 8,088 households.

Even after accounting for all existing households as demolished units that completely disappear, this amounts to a net increase of 1,695 households.

The city will also expand roads, parks, public libraries, senior welfare facilities, and youth shelters in the area.

Mayor Oh inspected the living environment today by walking through narrow alleys where fire trucks have difficulty entering and steep slopes.

He then held a meeting with residents at the Cheongpa 2 Redevelopment Association office to discuss improving the feasibility of the project and easing regulations on relocation expense loans.

Mayor Oh stated, "A home is not just a dwelling or an asset, but the most fundamental space that determines the safety, dignity, and quality of life of citizens," adding, "We cannot leave aging residential areas where even fire trucks have difficulty entering unattended and ask residents to wait longer."

He also emphasized, "Seogye and Cheongpa districts are sites that demonstrate the supply effect of urban renewal projects through data, showing a net increase of 1,695 households even after excluding existing housing demolitions," and added, "As urban renewal is practically the only large-scale supply solution in Seoul where available land is scarce, I will see it through to the end."

The Seoul Metropolitan Government noted that the net increase effect of households from urban renewal projects is also confirmed in other areas.

The city stated that for 59 urban renewal projects completed in the Seoul area over the past three years, the number of housing units increased by about 36.4%, or 20,000 units, compared to before the projects.

Redevelopment saw a net increase of 27.4%, or 7,000 units, while reconstruction saw a net increase of 44.2%, or 13,000 units.

The city analyzed that a total of 310,000 units will be constructed through 253 urban renewal projects that the city aims to break ground on by 2031, resulting in a net increase of about 39.2%, or 87,000 units, even assuming that all existing households are demolished.

The city plans to secure 48,000 units out of the 310,000 units as public rental housing to expand the housing stability foundation for young people, newlywed couples, and homeless citizens.

The vision is to extend the supply effects of urban renewal to general sales and the expansion of rental housing.

The city also plans to monitor and manage the relocation timing for each project site and the surrounding Chonse (lump-sum housing lease) and monthly rent market so that the relocation of residents due to urban renewal projects is not concentrated in a specific period.

It proposed measures to the government to restore the momentum of urban renewal projects.

The city suggested easing the mandatory proportion of rental housing in redevelopment projects and raising the floor area ratio for private urban renewal projects up to 1.2 times the legal limit.

It argued that the transfer of association member status, which has been restricted due to the designation of overheated speculation zones across Seoul, should be temporarily permitted for three years to provide an exit route for association members who are passive about the project.

It also recommended raising the loan-to-value (LTV) ratio for relocation expense loans from 40% to 70% and lowering the consent rate for establishing a redevelopment association from 75% to 70% to reduce delays in the early stages of urban renewal projects.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.