12,000 Households Moving In to Dunchon Spread 'Daycare Crisis Phobia' [Real Estate AtoZ]

Capacity of 665 at Olympic Park Foreon Daycare
"Demand from newlyweds may rise due to falling jeonse prices"
"Daycare capacity is not legally small"

#Kim, an expectant mother due to give birth this month, expressed concerns about a daycare crisis ahead of the November move-in of 12,000 households at Olympic Park Foreon (Dunchon Jugong Reconstruction). Living in an apartment near Olympic Park Foreon, Kim said, "When this apartment complex starts moving in this November, the demand for daycare centers will increase significantly," adding, "I wonder if I will be able to send my child to daycare when needed."

According to Gangdong District Office on the 8th, there will be a total of six public daycare centers in the Olympic Park Foreon project area. One of these will open in December this year, and the remaining five will open in January next year. The total capacity is 665 children. Olympic Park Foreon will begin move-ins for 12,000 households this November.

Olympic Park Foreon (Dunchon Jugong Reconstruction) photo. [Photo by Yonhap News]

Olympic Park Foreon Jeonse Prices Fall... Will Demand from Newlyweds Increase?

Voices of concern about a daycare crisis due to the move-in are emerging around this complex. According to the Korea Real Estate Board's Subscription Home, there are 756 units specially allocated for newlywed couples at Olympic Park Foreon. In addition, since this apartment is located in a good school district, more newlywed couples and couples with children can move in beyond the special supply units for newlyweds. Within the complex, there are two elementary schools: Wirye Elementary and Dunchon Elementary. Nearby, there are five middle schools?Hansan Middle, Boseong Middle, Dongbuk High, Dunchon High?and five high schools.

At the time when 12,000 households move in en masse, the increased supply may cause jeonse (long-term lease) prices to fall. This can act as a factor attracting additional demand from newlyweds and parents with children. As of the 7th, the jeonse asking price for a 59㎡ unit in Olympic Park Foreon registered on Naver Pay Real Estate is at least 620 million KRW. This is 190 million KRW lower than the lowest jeonse asking price (810 million KRW) for a 59㎡ unit in another large complex, Songpa Helio City.

Ham Young-jin, head of the Real Estate Research Center at Woori Bank, said, "Olympic Park Foreon, with its 12,000 households, may face a shortage of daycare centers," adding, "Especially since the rental prices in this apartment are affordable, demand from newlyweds may surge."

Daycare centers near Dunchon-dong are currently almost at full capacity. A daycare center official said, "The current capacity is 25 children, and 23 spots are filled," adding, "Right now, children can still be admitted, but once Olympic Park Foreon starts move-ins, it may become difficult." Another daycare center official said, "All spots are currently filled, so it is difficult to admit children this year," and added, "Applications for zero-year-old classes may be possible next year."

"Daycare Capacity Is Not Legally Insufficient"... Anxiety Remains

The daycare capacity at Olympic Park Foreon is not legally insufficient. According to the 'Enforcement Rules of the Infant Care Act,' the facility area per child in a daycare center must be at least 4.29㎡. With six daycare centers in Olympic Park Foreon having a total capacity of 665 children, the combined facility area is 2,853㎡. According to the 'Seoul Housing Ordinance,' the daycare facility area for Olympic Park Foreon must be at least 2,731㎡.

The Gangdong District Office stated that since move-ins have not yet started, it is necessary to observe the situation further. A Gangdong District Office official said, "The public daycare centers in Olympic Park Foreon were built according to the Seoul Housing Ordinance," adding, "Actual demand will need to be confirmed in the future."

Kim said, "After inquiring mainly in areas with large apartment complexes, unless you have multiple children, your child needs to be about 3 to 4 years old to be able to attend a daycare center within the complex," adding, "No matter how many daycare centers there are, if the complex itself is too large, a daycare crisis cannot be avoided." She continued, "I also heard that at another large complex, Songpa Helio City, the daycare waiting list reached up to 200 people."