Seoul to Begin Construction on 310,000 Units in 6 Years... 198,000 Supplied in Hangang Belt (Comprehensive) [Real Estate AtoZ]

Streamlining Permit Procedures to Accelerate Redevelopment: "Rapid Integrated Planning 2.0"
Reducing Redevelopment Timelines from 18.5 Years to 12 Years
Abolishing and Simplifying Various Procedures, Expanding Private Sector-Led Supply
Mayo

Seoul City plans to supply 198,000 housing units by 2031 in areas such as the Hangang Belt, which have been driving up housing prices. Including these, a total of 310,000 units will begin construction across the entire city. By streamlining permit procedures and promoting resident relocation, the city aims to advance the supply timeline by about six years compared to previous plans. Mayor Oh Sehoon stated that quickly supplying housing in high-demand areas, primarily led by the private sector, is the solution to the housing supply-demand issue.

The city announced the "Rapid Integrated Planning 2.0" initiative on the 29th. This plan is a public support measure introduced to accelerate the pace of redevelopment projects. The core of version 2.0 is to complete redevelopment projects within 12 years, compared to the typical 18 years and 6 months. The city estimates that the redevelopment process will take two years to designate a redevelopment zone, six years to start construction, and four years to complete construction.

Mayor Oh emphasized, "The key to solving Seoul's housing supply problem is private sector-led redevelopment projects," and added, "It is especially important to supply sufficient housing in major areas, including the three Gangnam districts." He continued, "By fully implementing Rapid Integrated Planning 2.0, we aim to achieve a tangible stabilizing effect on the real estate market throughout Seoul."

198,000 Units in the Hangang Belt by 2031... Faster Permit Process

Seoul City set a goal to begin construction on 310,000 housing units over six years. Starting with 23,000 units next year, the city will increase supply each year to 34,000, 22,000, 46,000, 73,000, and finally 112,000 units by 2031.

The city has designated complexes scheduled for relocation and demolition as next year’s supply. Representative complexes include Bangbae Sindonga, Bangbae District 13, Hannam District 3, Noryangjin Districts 5 and 7, Geumho District 16, Machun District 4, and Sindang District 8. Redevelopment projects in the implementation and management disposition stages are scheduled for 2027 to 2030, while projects currently in the zone designation stage are scheduled for 2031. According to the city, supply was secured by applying a project deadline system: two years from association establishment to project approval, two years to management disposition approval, and two years for relocation and demolition.

Seoul City announced on the 29th the promotion plan for "Rapid Integrated Planning 2.0," which accelerates private redevelopment projects through regulatory innovation in redevelopment project permits and approvals. The goal is to start construction on a total of 310,000 households by 2031, with plans to begin construction on 198,000 households in preferred areas such as the Hangang Belt. Provided by Seoul City

In particular, 198,000 units will be supplied in the Hangang Belt alone over six years. The supply target for the three Gangnam districts by 2031 is 75,000 units. The annual supply targets for the Hangang Belt are: 12,000 units in 2026, 15,000 in 2027, 11,000 in 2028, 30,000 in 2029, 38,000 in 2030, and 92,000 in 2031.

Mayor Oh explained, "We will begin construction on 168,000 units in the area south of the Hangang River, including the three Gangnam districts and Songpa, which will account for an overwhelming proportion of the Hangang Belt supply. If this volume is released, it will make a significant contribution to stabilizing the real estate market. The Hangang Belt, including the three Gangnam districts, contains many large complexes with over 2,000 units, making up a large share of the total supply."

He added, "If factors such as conflicts among residents arise, the supply volume could decrease, but it is generally accepted that faster project progress reduces costs. We will establish a task force to resolve conflicts, operating out of both district offices and city hall, and if these efforts are reflected, I believe the targets I mentioned can be achieved."

The city will abolish and simplify various procedures to increase the supply speed from the middle stages of the project onward. The "draft environmental impact assessment review meeting," which precedes the integrated review, will be omitted and instead reviewed collectively during the integrated review, shortening the project period by about two months. The redevelopment process will proceed in the order of zone designation, promotion committee and association establishment, project implementation approval, management disposition approval, relocation and demolition, and commencement of construction.

The "redevelopment rental housing tenant qualification check," previously conducted twice at the project approval and management disposition stages, will now be conducted only once at the management disposition approval stage. The "estimated contribution verification process," previously carried out four times before the association member allocation announcement, will be reduced to three times, eliminating duplicate verification at the management disposition stage.

Seoul City will also coordinate interdepartmental adjustments, a task previously handled by project implementers (associations), which is expected to reduce the project period by about two months. From the first half of next year, Seoul Housing & Communities Corporation (SH) will participate in the "management disposition plan feasibility verification," a process previously handled solely by the Korea Real Estate Board and which took about nine months, thereby reducing the verification period by about two months.

Seoul Mayor Oh Sehoon announced the plan to promote "Rapid Integrated Planning 2.0," which accelerates the speed of private maintenance projects through regulatory innovation in maintenance project permits and approvals, at Seoul City Hall on the 29th. Provided by Seoul City Hall

Establishing Support Standards for Tenants to Promote Relocation

To speed up redevelopment projects, the city also introduced measures to promote relocation. Additional compensation standards will be established so that associations can compensate tenants in redevelopment zones who were previously excluded from compensation. In redevelopment projects, the implementer is required to provide mandatory compensation to tenants, but if the tenant changes, they have been excluded from compensation, leading to conflicts during relocation. The city announced that if additional compensation is provided, the floor area ratio will be relaxed by about 4%.

Comprehensive demolition plans will only be required for zones where actual demolition is necessary. By reducing the previously extensive work required for all buildings, the city expects to shorten the project period by about two months.

Authority has been significantly expanded so that minor changes, such as floor area ratio or redevelopment zone area, can be handled by district mayors. Currently, only changes of less than 5% in zone area, redevelopment infrastructure size, floor area ratio, or building coverage ratio can be handled by district mayors, but this will be expanded to less than 10%. This is expected to shorten the project period by about one month.

Meanwhile, on this day, Mayor Oh dismissed plans to designate additional land transaction permit zones (LTPZ) in areas such as Mapo, Seongdong, and Gangdong districts. He stated, "There are no plans to designate more LTPZs beyond those previously designated. However, in the last government measure, the Ministry of Land, Infrastructure and Transport announced that it would have expanded authority to designate LTPZs in cooperation with Seoul City. This is something that will require continuous monitoring and consultation moving forward."