126,000 Redevelopment Housing Units to Be Released This Year... Largest in 4 Years

About 120,000 households will be supplied through redevelopment and reconstruction maintenance projects this year. This is the largest volume in four years since 2019.

[Image provided by Real Estate R114]

According to Real Estate R114 on the 29th, the supply volume through redevelopment and reconstruction maintenance projects this year is 126,053 households, the largest volume since 2019 (101 complexes, 101,794 households).

The main reason for the significant increase in maintenance project volume is the supply effect of redevelopment projects in low-rise residential areas (71 complexes, 90,449 households expected to be supplied). Currently, as the government is improving systems for urban maintenance projects and allowing high-rise development, there is high anticipation for revitalizing maintenance projects centered on redevelopment sites, which have a relatively outstanding supply expansion effect.

Looking at the redevelopment supply projects scheduled for this year by region, a considerable number are located in the Gyeonggi-do area. Gyeonggi-do is expected to supply a total of 34,732 households across 24 complexes. Large-scale complexes with more than 3,000 households include ▲Sanseong District Housing Redevelopment in Sanseong-dong, Sujeong-gu, Seongnam-si (3,372 households), ▲Gwangmyeong Xi The Sharp Forena in Gwangmyeong-dong, Gwangmyeong-si (3,585 households), ▲Vermontro Gwangmyeong in Gwangmyeong-dong, Gwangmyeong-si (3,344 households), and ▲E-Pyeonhansesang Sutaek Site in Sutaek-dong, Guri-si (3,050 households).

In Seoul, a total of 16 complexes will supply 16,356 households. The scale is considerable with complexes such as ▲Imun I-Park Xi in Imun-dong, Dongdaemun-gu (4,321 households) and ▲Raemian La Grande (3,069 households). In Busan, the complex scale of DIEL located in Daeyeon-dong, Nam-gu is also considerable with 4,488 households.

Yoon Ji-hae, Senior Researcher at Real Estate R114, said, “80 to 90% of apartments supplied in Seoul are provided through maintenance projects,” adding, “Urban areas with a shortage of idle land inevitably see an increase in the proportion of supply through maintenance projects.” She continued, “Since redevelopment projects have many low-rise residential areas and thus have a large quantitative housing supply effect demanded by local governments, construction companies are expected to prepare for market downturns by selectively bidding on redevelopment projects that allow high density.”