A woman in her 40s, residing in a rental apartment in Sindorim-dong, Guro-gu, recently received notice from her landlord to vacate the property in six months as they plan to move in. With a young child in elementary school, she finds it difficult to relocate far away, but suitable rental options nearby are scarce. She expressed concern that the influx of relocation demand from nearby remodeling projects is making it even harder to find a new home. "My children are asking if their friends will have to move away, and it’s stressful for them," she said.
The ongoing relocations due to urban redevelopment projects in western Seoul are putting additional strain on the local rental market. Newcomers and existing tenants are competing for a limited number of rental properties, particularly in areas like Daebang, Gongdeok, Sindorim, and Mullae, which are positioned to accommodate relocation demand from various neighborhoods.
According to the construction industry, the Daegyo Apartment in Yeouido, which has 576 units, began its relocation process last month and is expected to continue until March of next year. The Noryangjin 1 and 3 districts, with a total of 4,935 units, are also set to relocate by February and March of next year, respectively. Daebang-dong, located nearby, is a common relocation destination for residents from both areas.
A local real estate agent noted, "There aren’t many rental units available within Yeouido, so residents from Daegyo Apartment are moving towards Singil or Daebang. Some landlords are even raising rental prices when they list their properties." He added that many newcomers are trying to stay within their budget, leading to a trend of downsizing to smaller units.
Gongdeok-dong is close to Bukahyeon and is connected to Yeouido via Subway Line 5. The existing Bukahyeon 2 district, which has 4,086 units, plans to begin relocations from November 9 to March 8 of next year. This timing may overlap with the relocations from Daegyo Apartment, increasing demand in the Gongdeok area.
In Sindorim and Mullae, which are near Yeouido, the influx of new demand could further complicate the situation for existing tenants. The Munrae Jinju Apartment completed its relocation in January of last year, but new residents are not expected to move in until March 2029. As existing tenants continue their leases, new demand from areas like Yeouido could further limit their housing options.
Rental prices in the surrounding areas have already risen significantly. According to the Korea Real Estate Agency, the cumulative increase in rental prices for apartments as of the fourth week of October this year was 9.12% in Guro-gu, 8.75% in Yeongdeungpo-gu, and 7.97% in Mapo-gu. With the concentration of relocation demand, tenants may have to either downsize or shift to monthly rentals to remain in the same area.
Kim Hyo-sun, a senior real estate expert at KB Kookmin Bank, stated, "Since tenants find it difficult to gather a large sum of money all at once, we may see a quicker shift to monthly rentals or an increase in monthly rental prices compared to the rise in rental deposits." She emphasized the need for local governments to coordinate relocation schedules for redevelopment projects and encourage the supply of existing rental housing.
* This article has been translated by AI.
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