Seoul's Redevelopment Model Faces Crisis as High-Rises Age

Seoul's aging apartment complexes are facing a redevelopment crisis as the number of high-rise buildings nearing their 30-year lifespan rapidly increases. By 2035, 81% of apartments reaching this age limit will be high-rises, a stark contrast to the current 15.8%. This shift challenges the long-standing model of redevelopment that relied on increasing building height to boost owner assets and housing supply.

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Redevelopment and redevelopment can improve housing quality by renovating the entire project area. For residents with small ownership areas, there is not much tangible change from just renovating the interior.

Experts acknowledge the continued need for redevelopment to improve urban infrastructure like roads and parking, especially for residents with smaller units who see little benefit from mere interior repairs. However, they point to significant hurdles. Song Seung-hyun, CEO of Urban & Economy, highlights the shrinking buffer of available housing for displaced residents and suggests securing transitional housing in new towns and easing regulations on rental housing supply. He also proposes financial support to counter rising construction costs.

Ma Kang-rae, a professor at Chung-Ang University, calls for a fundamental re-evaluation of the current redevelopment system, which has largely been driven by private associations without significant public profit recapture. He notes that even in desirable areas, owners now face substantial additional payments, a trend likely to continue. Kim Hyun-soo, a professor at Dankook University, points out the physical limits of urban infrastructure to support excessively high building densities, suggesting that redevelopment should be reserved for areas where it is feasible.

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Now, even in areas with good business prospects, people pay a lot of additional payments. The level of additional payments will only get higher in the future, and that is only natural.

Alternative solutions proposed include prioritizing interior renovations for buildings without structural safety issues, using these to house younger or vulnerable populations. For less viable redevelopment sites, a focus on remodeling and urban regeneration is suggested, alongside a system for pre-saving repair funds. Kim also advocates for a broader metropolitan housing plan that expands housing supply in outer areas connected by transportation networks like the GTX, rather than concentrating density within Seoul.

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There is a total amount of building density that the city can handle, and if all buildings are given a density of 300% or more, it becomes difficult to handle.

Cho Jung-heun of the Citizens' Coalition for Economic Justice argues for stricter recapture of development profits in profitable areas, to be used for less viable redevelopment projects. He criticizes the practice of lowering community facility standards and parking regulations to boost profitability, which can degrade living environments. Cho also condemns the practice of pressuring residents for consent before management plans are finalized, calling it a "violent" approach that exacerbates housing insecurity for low-income tenants. He suggests public investment in low-rise, older neighborhoods to create livable spaces as a cost-effective alternative.

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In areas with sufficient business viability, there is no need to provide additional floor area ratio incentives, and development profits must be properly recaptured.