SH Expands Feasibility Assessment for All Moahousing Projects... Raises Purchase Standards for Rental Housing

Consent Rate for Moahousing Feasibility Analysis Lowered from 30% to 20%
Expansion of Public Management for Moatown, Introduction of “Public Proposal-Type” Model
Purchase Price Standard for Rental Housing Raised to “80% of Basic Construction Cost”

On October 29, Seoul Housing & Communities Corporation (SH) announced that it will implement follow-up measures for the “Moahousing Activation Plan,” which include strengthening the feasibility assessment of Moahousing projects and raising the purchase price of rental housing.

Aerial view of Pungnap-dong Moatown, a leading project site for public management in Moatown. Provided by SH

In August, the Seoul Metropolitan Government announced the “Moahousing Activation Plan,” which included measures such as the introduction of a profitability adjustment coefficient, upgrading the zoning for Moahousing in station areas to quasi-residential, raising the purchase price of rental housing, and simultaneously promoting the establishment of Moatown management plans and the review of architectural plans.

To address the core issue of profitability uncertainty in Moahousing, SH will expand the scope of feasibility analysis, which was previously limited to designated sites within Moatown, to cover all Moahousing projects.

Accordingly, SH will lower the required resident consent rate for requesting a feasibility analysis from 30% to 20%, making the initial verification process more accessible. In addition, for all Moahousing projects, SH will comprehensively review estimated contribution calculations, floor area ratio simulations, architectural planning, project cost estimations, and pre- and post-project asset appraisals. This will support the verification of feasibility analysis information and estimated contributions. By allowing residents to access feasibility information, unnecessary conflicts and procedural delays can be minimized.

A new financial product dedicated to Moahousing will also be introduced. On September 24, SH signed a financial business agreement with the Seoul Metropolitan Government and Hana Bank to support public participation-type Moatown project funding. SH is currently developing a main project financing product, tentatively named “Moahousing Secure Fund,” for Moahousing projects in which SH participates. The “Moahousing Secure Fund” aims to reduce the financial burden on cooperatives and improve project viability by offering low-interest loans at a rate 0.6 percentage points lower than existing rates, covering up to 70% of total project costs. The product is scheduled for official launch in the first half of 2026.

Public management of Moatown will also be expanded. Previously, SH supported the establishment of management plans only after candidate sites were selected through district office proposals. Going forward, SH will introduce a “public proposal-type Moatown” model, in which SH directly establishes and proposes management plans prior to candidate site selection. By refining plans from the initial stage under public leadership, procedures can be streamlined and risks reduced.

The purchase price standard for rental housing will be raised. The construction cost standard for public rental housing built as a floor area ratio incentive will be adjusted from the current “standard construction cost” to “80% of the basic construction cost,” reducing the burden on residents and encouraging the supply of high-quality rental housing.

Hwang Sangha, President of SH, stated, “We will focus all of the corporation’s capabilities to drive substantial improvements in aging low-rise residential areas through the successful implementation of Moahousing and Moatown projects,” adding, “We will accelerate project progress through effective policies such as enhancing the transparency of feasibility assessments, strengthening financial support, and expanding public management.”