Surge in Investment Inquiries from Yeouido, Apgujeong, Seongsu over Opposition Unity
Up to 50-Story Buildings Allowed Along Han River, Promises to Revitalize Reconstruction and Redevelopment
Oh Se-hoon, the People Power Party candidate selected as the unified candidate of the broad opposition for the Seoul mayoral by-election, clenches his fists after finishing a press conference at the National Assembly Communication Office on the 23rd. Photo by Yoon Dong-ju doso7@
[Asia Economy Reporter Onyu Lim] With Oh Se-hoon, the People Power Party candidate who pledged to revitalize maintenance projects, being selected as the unified opposition candidate for Seoul mayor, expectations for reconstruction along the Han River, Gangnam, and Mokdong?areas previously blocked by regulatory barriers?are rising. In opinion polls, Oh’s support rate significantly surpasses that of Park Young-sun, the Democratic Party candidate, creating a market atmosphere that responds first to his pledge to "completely lift reconstruction and redevelopment regulations within a week of taking office as Seoul mayor." However, some caution that premature expectations should be avoided since it is difficult for the city to ease reconstruction regulations without government cooperation.
According to the real estate industry on the 24th, after Oh was confirmed as the unified opposition candidate the day before, investment inquiries surged in areas such as Apgujeong-dong in Gangnam-gu, Yeouido-dong in Yeongdeungpo-gu, Seongsu-dong in Seongdong-gu, and Mokdong in Yangcheon-gu. This is because Oh made revitalizing redevelopment and reconstruction for housing supply a key campaign promise for the April 7 Seoul mayoral by-election. Oh emphasized that the core of housing supply is the ‘private sector’ and promised, "If I take office as Seoul mayor, I will convene the Urban Planning Committee within a week to lift reconstruction and redevelopment regulations."
A maintenance industry official said, "Expectations for reconstruction in Jamsil 5-danji, Mokdong, and Yeouido, which had been delayed since former Mayor Park Won-soon took office, have greatly increased," adding, "Investors are already acting on the assumption that Oh will win."
As the entire Seoul maintenance project zones are abuzz, reconstruction along the Han River is especially considered the biggest beneficiary area. This is because Oh announced he would abolish the ‘35-floor height limit along the Han River,’ a key regulation of former Mayor Park, and allow up to 50 floors. Oh is expected to restart the ‘Han River Renaissance’ project, which was halted due to his own dishonorable resignation as Seoul mayor.
A representative from a real estate agency in Apgujeong-dong, A Real Estate, hinted, "Listings are being absorbed even at prices that seem excessively high." In fact, a 196㎡ (exclusive area) unit in Hyundai 1st Complex was traded for 6.3 billion KRW on the 15th. This is an increase of 1.15 billion KRW from the previous highest price of 5.15 billion KRW last month.
Yeouido, where maintenance projects were virtually halted due to the suspension of former Mayor Park’s master plan, is experiencing a similar atmosphere. A representative from B Real Estate in Yeouido-dong said, "As reconstruction has become a hot issue in the Seoul mayoral election, many homeowners are withdrawing their listings," adding, "They plan to make a definite decision on whether to sell after the election results."
The Seongsu Strategic Maintenance Zone, known as Oh’s ‘legacy’ from his previous term as Seoul mayor, is also welcoming his selection. This zone had redevelopment approved up to 50 floors under Oh’s Han River Renaissance plan but experienced delays after former Mayor Park took office. There are expectations that Oh will quickly push forward development in this area as part of erasing Park’s legacy. In fact, Oh announced the ‘Speed Housing Supply Phase 1’ in the Seongsu Strategic Zone.
However, unlike the investors’ movements, each reconstruction promotion complex is internally ‘managing expressions.’ This is because an overly enthusiastic atmosphere could negatively affect public opinion and the election. An owner of an apartment in the new town area of Mokdong explained, "Premature celebration could create unfavorable public opinion toward easing reconstruction regulations, so the atmosphere is cautious." In Mokdong’s case, the district unit plan passed the traffic impact assessment in July last year and is only awaiting the final review of the revised plan.
Kim Deok-rye, Senior Research Fellow at the Korea Research Institute for Housing and Urban Affairs, said, "To build the Han River skyline of the global city Seoul, the 35-floor regulation must be lifted," but added, "However, easing reconstruction regulations involves many areas beyond the mayor’s authority, so it is questionable whether cooperation from the central government can be obtained."
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