Seoul Mayor Oh Se-hoon pushed back against President Lee Jae-myung's characterization of rising home prices in the city's outer districts as a "leveling-out process," saying that "leveling up, rather than leveling out, is the more accurate description of the reality in Seoul's housing market." Oh also chose the site of the first completed Moa Housing project as his first field visit after the Chuseok holiday, highlighting the program's efficiency as a supply measure alongside redevelopment and rebuilding.
Oh made the remarks on the 28th while meeting reporters at Central I'Park at Gangbyeon Station in Seoul's Gwangjin District, the first Moa Housing project site, saying he was "watching with great concern the continued rise in sale prices in Seoul's outer districts." At a press conference on the 18th, Lee had described price gains in outer Seoul districts such as Nowon, Dobong and Gangbuk as a "leveling-out process."
Oh also voiced concern about the rental market. "As long as the government does not change a policy stance that forces owners to live in their own homes, rent strains are likely to persist," he said. "The supply of jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) units is shrinking, and jeonse deposits and monthly rents are rising, which could prolong the hardship for low- and middle-income households."
Oh's choice of Central I'Park at Gangbyeon Station for his first site visit after the holiday was also meant to underscore the need for faster housing supply. "Just four years after we launched the Moa Housing policy, the first complex has welcomed residents," he said. "This can send a message of hope to Seoul residents suffering from the housing shortage." Redevelopment and rebuilding projects can take more than 10 years at some sites, he explained, while relatively small Moa Housing projects can move faster. Moa Housing is a Seoul city renewal program that consolidates lots in aging low-rise residential areas where redevelopment or rebuilding is difficult and develops them into multi-unit housing, improving project viability through eased floor-area-ratio and height limits, integrated deliberation and financial support.
The former Hanyang low-rise multi-unit complex in Gwangjin District, now transformed into Central I'Park at Gangbyeon Station, covered 9,877 square meters, short of the 10,000-square-meter threshold for redevelopment, which made a large-scale renewal project difficult. Through Moa Housing, the original 99 units grew to 215, and residents began moving in this month. According to the city, it took about three years from integrated deliberation to completion, roughly two years shorter than the standard processing period. About 31 households are expected to have moved in by the end of this month.
"An increase in complexes like this could be the most effective measure to resolve Seoul's unstable housing market," Oh said. "We will move as quickly as possible in step with residents." The city aims to break ground on 40,000 Moa Housing units by 2031.
Oh also said he hoped to meet soon with Hong Ji-sun, the new minister of land, infrastructure and transport. "With former Minister Kim Yoon-duck, we met often and could discuss matters openly," he said. "I hope good conversations continue with the new minister."
He also expressed concern that the change of minister could send existing negotiations back to square one. "On issues where we differed, such as the use of the Yongsan Park and Tancheon sites, we had narrowed our positions considerably and were on the verge of a package deal when the personnel change came suddenly," he said. "I hope we find a compromise as an extension of the discussions we have already had."
