Seoul Mayor Oh Se-hoon emphasized the achievements in housing supply through the relaxation of regulations in semi-industrial areas on July 16, clearly differentiating his approach from the current government's real estate policies. He reiterated his philosophy of stabilizing housing prices through increased supply rather than suppressing demand.
After visiting the reconstruction site of the Yangpyeong Shin-Dong-A Apartment in Yeongdeungpo District, Mayor Oh stated on his Facebook page, "Seoul is demonstrating its achievements in housing supply in semi-industrial areas," adding, "This site shows how a city comes alive when the clogged arteries of regulation are opened."
The core of his message was not just a declaration of increased supply but a detailed execution plan addressing 'where, how, and how much' supply will be increased.
Mayor Oh defined, "Seoul is no longer a city with vast empty land," asserting that redevelopment and reconstruction are the only realistic solutions for supply. He specifically highlighted semi-industrial areas, which had previously stalled due to low profitability, as a key focus for supply.
In 2024, the city announced the 'Southwest Region Revitalization' policy, significantly increasing the residential floor area ratio for semi-industrial areas from 250% to a maximum of 400%. This strategy aims to enhance profitability and stimulate private redevelopment projects.
As a result, approximately 27,000 housing units are currently being developed across 32 semi-industrial areas in Seoul.
The Yangpyeong Shin-Dong-A Apartment is a prime example. The complex, which originally had 563 units, will increase to 762 units through reconstruction, with the burden on members decreasing by about 10 million won per unit. With the project's feasibility secured, it passed integrated review in March and is now on track.
Mayor Oh emphasized that this success is "evidence that relaxing regulations revives supply."
Notably, he referenced the amendment of regulations for semi-industrial areas during his first term as mayor in 2008, highlighting the continuity of his supply policies.
He remarked, "Opening the way to build apartments on old factory sites 18 years ago marked the beginning of today's Southwest Region Revitalization," stressing that consistency and sustainability in policy are crucial.
He also outlined future plans, stating that areas requiring industrial functions will be developed as high-tech industrial hubs, while already residential areas will undergo redevelopment and reconstruction, along with the expansion of green spaces and community facilities to transform them into 'mixed-use cities' for living and working.
Additionally, the city reaffirmed its goal to start construction on a total of 310,000 housing units across Seoul by 2031 through the advanced 'New Integrated Planning 2.0.'
Supply Expansion vs. Demand Suppression: A Clear Contrast in Real Estate Policies
This message naturally contrasts with the current government's real estate policies. The Lee Jae-myung administration has introduced a series of measures focused on market stability through financial regulations, loan management, and curbing speculative demand. In contrast, the Seoul city government believes that the fundamental cause of housing price instability is a lack of supply, proposing the relaxation of redevelopment and reconstruction regulations and increasing floor area ratios as key remedies.
While the government aims to stabilize the market by managing demand, Seoul is taking an approach to stabilize prices by expanding supply.
Mayor Oh is also reforming administrative procedures to facilitate supply expansion. Through the New Integrated Planning, the city is shortening urban planning and maintenance procedures and expanding integrated reviews to reduce project timelines, making supply speed a policy target.
This approach is seen as not just setting supply goals but also establishing a supply system that includes regulatory improvements and innovation in permits.
City officials stated, "Seoul is no longer in an era of developing new sites but in an era of urban renewal," explaining that how efficiently existing urban areas are restructured will determine the success of future supply.
Mayor Oh reiterated, "To keep the promise of housing supply to citizens, Seoul is working diligently," vowing to steadily pursue the revitalization of previously less desirable areas into spaces where anyone would want to live.
This Facebook message is interpreted not merely as a reflection on a site visit but as a clear reaffirmation of Seoul's real estate policy direction focused on 'expanding supply through regulatory relaxation,' highlighting its distinction from the current government's demand management-centered policies.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.