Seoul's Eungma Apartment redevelopment to displace 3,100 households, sparking market fears

The Eungma Apartment complex in Daechi-dong, Gangnam, Seoul, a highly anticipated redevelopment project, is set to trigger a significant relocation of approximately 3,100 tenant households in the first half of next year. This move is a crucial step in the long-awaited urban renewal of one of Seoul's most prominent areas.

The potential for a "chain migration" effect looms over Seoul's housing market, particularly the Jeonse rental system. Experts worry that as homeowners who have been renting out their properties return to live in them, spurred by recent tax reforms focused on self-residency, the tenants they displace will need to find new homes. This could create a ripple effect, increasing demand and potentially driving up Jeonse prices across the city.

The Eungma complex is considered the "biggest prize" in Seoul's reconstruction market, highlighting its significance. The sheer number of households involved underscores the potential scale of disruption. The situation is further complicated by the fact that many Eungma tenants may have their own properties elsewhere in Seoul, which they currently lease out. Their return to Eungma could force their existing tenants into the already tight rental market.