Seoul Picks 11 Sites for 18,000 New Homes, Including Gangnam

■11 Sites Chosen for Urban Public Housing Complex Program 4,222 Homes Planned Near Yeomchang Station in Mok-dong About 900 Homes Each in Seocho and Songpa in the Gangnam Area Floor Area Ratio Cap Raised by Up to 1.4 Times as an Incentive Pace of Each Project Hinges on Securing Resident Consent

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By Kang Do-rimdorimi@sedaily.com
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null - Seoul Economic Daily Finance News from South Korea

The government plans to build 18,000 homes at 11 sites in central Seoul, including the Yongsan and Mapo districts. It is the first time in three years that new candidate sites have been named under the urban public housing complex program, and the first time sites in the sought-after Gangnam area have been included.

The Ministry of Land, Infrastructure and Transport (MOLIT) said on the 30th that it had selected 11 new candidate sites in Seoul as a follow-up to the housing fast-track supply plan announced in August. Two are in Gwangjin District, with one each in Gangseo, Guro, Mapo, Seocho, Seongbuk, Songpa, Yangcheon, Yongsan and Eunpyeong. Six are near subway stations and five are low-rise residential areas, together accounting for 18,000 homes. The ministry screened 44 resident-proposed sites submitted during a public call from March to May, assessing building age, project viability and the share of residents in favor.

The largest site is south of Yeomchang Station in Mok-dong, Yangcheon District, where 4,222 homes will be built. Another 4,040 homes are planned north of Hyochang Park Station in Yongsan District, a transfer point between Subway Line 6 and the Gyeongui-Jungang Line with strong transit access. A further 2,335 homes will go up east of Hwagok Station in Gangseo District and 1,663 homes east of Achasan Station in Gwangjin District.

Other plans include 961 homes west of Baengnyeonsan in Eunpyeong District and 940 homes near Mangwon Sports Park in Mapo District. Seocho and Songpa districts, which had no candidate sites until now, were included for the first time. In Songpa, 935 homes are planned near Olympic Park in Bangi-dong, and in Seocho, 918 homes east of Isu Station in Bangbae-dong.

The ministry will hold briefings for residents of the newly selected sites in October, aiming to designate them as planned districts in the first half of next year and to break ground in the second half of 2030. It also plans another public call for sites in the greater Seoul area in the first half of next year, and sites passed over this time may reapply after addressing shortcomings such as building resident support or redrawing district boundaries.

Under the urban public housing complex program, public agencies directly undertake redevelopment in aging central neighborhoods where low returns had discouraged private projects, offering incentives such as higher floor area ratios. The approach cuts through complex permit procedures, allowing homes to be supplied quickly and reliably. Yet progress has been slow since the program was introduced in 2021, with not a single site having broken ground, as the government's push for public benefits collided with residents' concerns over the money they would have to contribute.

Once shunned, the program has drawn resident interest as the government moved to improve returns with a range of incentives. In the Sept. 7 supply measures last year, the government revived the program as a way to deliver 50,000 homes. As a follow-up, it raised the floor area ratio cap for participating projects to as much as 1.4 times from 1.2 times and eased requirements such as the obligation to create parks. A revision to the Special Act on Public Housing extending the program's sunset deadline by three years passed the National Assembly last month.

The program currently covers 47 sites nationwide with a combined 85,000 homes. The first to break ground will be a site near Jemulpo Station in Incheon with 3,497 homes; if construction starts this year, it will come five years after the site was selected. An official involved in one of the complex districts said the mood was one of broad satisfaction because a project that would have taken far longer under private developers had been pulled forward by about a decade. "It is also encouraging that the 1.4-times easing of the floor area ratio increases the supply of homes sold on the open market," the official said.

Even as the list of candidate sites expands, the real determinant of how fast projects move is resident consent. Even after being named a candidate, a site can be designated a complex district only with the consent of at least two-thirds of landowners and other property holders, representing at least half of the land area. Because the projects are publicly led, persuading residents on compensation levels and required contributions is expected to shape how quickly they advance.

Separately, the ministry has been working to accelerate the program. Early this month it designated two complex districts — west of Goeunsan in Seodaemun District with 2,577 homes and the Gangseo High School area in Mok 4-dong, Yangcheon District, with 4,209 homes — and has since added three more: the Songjung-dong community service center area in Gangbuk District with 1,083 homes, Nokbeon-dong Neighborhood Park in Eunpyeong District with 2,676 homes, and Singil 4 in Yeongdeungpo District with 1,273 homes. Together the five sites account for 11,818 homes.

"The urban public housing complex program is a key redevelopment tool that can quickly meet housing demand in central areas," said Jung Woo-jin, head of the ministry's housing supply task force. "Having pledged to expand the program through the Aug. 13 measures, we will not stop at selecting candidate sites but will support the follow-up steps, including district designation and approval of project plans, so they proceed without a hitch."

Original reporting by Kang Do-rim for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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