Seoul City Requests Reconsideration of Rental Housing Placement
Association to Accept City’s Recommendation
Criticism Over Excessive Infringement of Property Rights
The reconstruction project at Jamsil Jugong Apartment Complex 5 in Songpa-gu, Seoul is facing conflict due to a controversy over the social mix (mixed ownership and rental housing) policy. The dispute arose after the Seoul Metropolitan Government, during the integrated review process for urban renewal projects, requested that rental housing be placed in the apartment buildings along the Han River. Some association members are pushing back, arguing that the city’s guidelines constitute an excessive infringement on property rights.
According to the urban renewal industry on May 21, the city postponed the agenda for the reconstruction of Jamsil Jugong Apartment Complex 5 at last month's Integrated Review Committee for Urban Renewal Projects. The main issue was that public rental housing was excessively concentrated in the lower floors and mixed-use areas of the complex. The city pointed out that rental housing had not been allocated in four apartment buildings adjacent to the Han River, stating that this violated the principle of social mix, and asked the association to reconsider its plans.
The association accepted the city’s recommendation. A city official stated, “The association has accepted the city’s opinion and submitted an action plan,” adding, “The review process will resume soon.”
This guideline stems from the city’s view that allocating rental housing only in less desirable buildings goes against the principles of social mix. Social mix is a method of integrating ownership and rental housing within the same buildings during reconstruction or redevelopment. Ensuring that residents of rental housing are not excluded from river or waterfront views is also considered part of social mix. Previously, in 2021, the city mandated social mix for all redevelopment and reconstruction projects in Seoul.
However, some association members are expressing dissatisfaction. Since a Han River view can add billions of won in premium value, some argue that requiring rental housing to have access to such views is an excessive privilege. Additionally, they point out that following the city’s guidelines would reduce the number of units available to association members and for general sale in the more desirable buildings, which could lead to infringement of property rights.
Experts warn that excessive demands for social mix could dampen reconstruction projects. Kim Inman, head of Kim Inman Real Estate Research Institute, stated, “For residents of rental housing, securing housing stability in a good location is more important than having a Han River view,” adding, “Rather than applying a mechanical social mix, profits from general sales should be distributed between the association and the city, and used to invest in other idle sites in the future.”
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