As disagreements continue between the government and Seoul City over housing supply at Yongsan Park, alternative sites in Tancheon and the relaxation of private development density regulations have come to the negotiation table. Given that both proposals have been discussed multiple times in the past, there is keen interest in whether they will lead to actual supply this time.
According to the real estate industry on August 27, Seoul City has proposed to the Ministry of Land, Infrastructure and Transport the relocation of the Tancheon Water Reclamation Center in Gangnam's Ilwon-dong, along with the development of 10,000 to 13,000 units of youth housing and facilities for the physical AI industry, linking it with the Eastern Road Office and the Seoul Trade Exhibition Center (SETEC). The Ministry of Land has agreed to review the related materials.
Discussions about development in this area have been ongoing for a decade. Since 2014, Seoul City has attempted to develop the area around SETEC and the Eastern Road Office, but plans have repeatedly changed or been put on hold. In 2016, a mixed-use development aimed at enhancing the functionality of the aging exhibition center was proposed, and in 2018, the Eastern Road Office was included as a site for public housing supply, leading to the suspension of existing plans.
Seoul City later expanded the development scope to include the confluence of the Yangjae and Tancheon streams, reassessing the development direction. A master plan study for the confluence area was completed in 2024, and a feasibility study for relocating the water reclamation center is currently underway. This time, the plan aims to develop the area as a southeastern hub combining physical AI industry and youth housing.
However, the challenges of relocating facilities and the financial burden of the project remain. The relocation of the water reclamation center is essential for development, but identifying a suitable alternative site is proving difficult. Minister of Land, Infrastructure and Transport Kim Yoon-deok stated, "Selecting a new site for the Tancheon Water Reclamation Center is also challenging," as discussions on related issues continue.
Before the proposed supply of 10,000 to 13,000 housing units can be realized, the issues surrounding the relocation site and funding must be resolved. Seoul City plans to utilize the Eastern Road Office and SETEC sites to secure project funding and attract private investment.
Nam Hyuk-woo, a researcher at Woori Bank's real estate research institute, noted, "It seems unlikely that housing supply on the Tancheon Water Reclamation Center site will happen in the short term," but added, "Compared to the Yongsan Park project, which requires legal amendments, this project can be pursued more swiftly."
The relaxation of density regulations is not a new solution. During the 2022 presidential election, a proposal was made to establish a new 'Type 4 General Residential Area' that would allow density to increase up to 500%. In the August 2024 supply plan, the government also proposed increasing density for redevelopment and reconstruction to expand urban supply.
In May of this year, Seoul City raised the legal upper limit for urban redevelopment in revitalization promotion districts by up to 1.2 times. Semi-residential areas can now allow density up to 600%, while general commercial areas can reach 1,560%. This time, the city aims to extend similar exceptions to private redevelopment to increase supply.
Seoul City believes that allowing a density increase of 1.2 times the legal upper limit for private redevelopment will enhance the net housing supply from redevelopment projects. However, issues related to public contributions and securing rental housing standards, as well as amendments to urban redevelopment laws, must also be addressed.
Seoul City explained that the Ministry of Land has shown a willingness to positively consider the relaxation of density regulations for private redevelopment projects.
However, the Ministry of Land has drawn a line on broad interpretations. A ministry official stated, "No decisions have been made regarding the review direction for the relaxation of private redevelopment density regulations by 1.2 times."
* This article has been translated by AI.
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