Over 10,000 households are currently relocating or scheduled to relocate from redevelopment sites in Noryangjin, Bukahyeon, and Sangye, putting pressure on the rental market. As relocations overlap from the second half of this year into early next year, there are concerns that tenants unable to find rental homes may be forced to move to the outskirts of Seoul or Gyeonggi Province.
On September 21, Jeon Yong-gi, a member of the National Assembly's Land, Infrastructure and Transport Committee from the Democratic Party, reported that according to data from the Seoul city government, the planned relocation volume for redevelopment projects from 2026 to 2030 includes 24 districts and 24,844 households. The Noryangjin 1 and 3 districts, Bukahyeon 2 district, and Sangye 1 and 2 districts account for 10,473 households, or 42.2% of the total.
The Noryangjin 1 district will see 3,897 households relocate between August 31 and February 28 of next year. The Noryangjin 3 district is set to have 1,038 households move from October 29 to March 28 of next year.
A real estate agent near Noryangjin 1 district noted, “There is significant demand for moving to Sangdong, which is close to the existing living area, but there are currently very few rental listings available there. If relocations occur in both the 1 and 3 districts, it may become even more difficult to find housing.”
The agent added, “Existing redevelopment areas tend to have more affordable housing, making it challenging to find similar rental options. If tenants cannot secure housing in Sangdong, they may have to move to Gyeonggi Province.”
Funding for relocation costs is also a variable. Posco E&C announced that an agreement has been reached to provide additional relocation funds of up to 160 billion won at an interest rate in the mid-5% range for the Noryangjin 1 district. However, additional relocation funds for the Noryangjin 3 district have not yet been confirmed.
In Bukahyeon 2 district, 2,862 households are scheduled to relocate from November to March of next year. A consortium led by Samsung C&T and DL E&C will construct 2,320 units across 28 buildings, with heights reaching up to 29 stories.
A real estate agent near Bukahyeon 2 district stated, “This area has a relatively high number of tenants and rental prices are comparatively affordable. To find similar-priced homes, tenants may need to move to Eunpyeong District or the outskirts of Gyeonggi Province.”
It has been explained that tenants who have lived in affordable housing for a long time may struggle to cope with rising rental prices in the surrounding areas due to prolonged stagnation in redevelopment projects.
In Nowon District, 690 households from Sangye 1 district and 1,986 households from Sangye 2 district are also preparing to relocate. The number of apartments scheduled for occupancy in Seoul this year is projected to be 18,880, a 41.7% decrease from last year. The combination of reduced occupancy and increased relocations could exacerbate the shortage of rental listings.
Song Seung-hyun, CEO of Urban and Economy, emphasized, “Given the large-scale relocations planned, it is crucial to prioritize securing rental listings. With various regulations, including restrictions on multiple home ownership and land transaction permits, the rental market is already facing constraints. If relocation demand arises simultaneously, it could significantly burden the rental market.”
He added, “Relying solely on some demand moving to the outskirts of Seoul or Gyeonggi Province has its limits. There must be new housing supply to absorb the relocation demand.”
* This article has been translated by AI.
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