A large-scale apartment complex with 4,200 households will be newly built in Mok-dong, Yangcheon District, Seoul. The site, where redevelopment is difficult as a private project due to low profitability, will be developed under public leadership; it was first selected as a candidate site in Dec. 2022 and has gained speed after the launch of the Lee Jae-myung administration.
Among the units for sale are profit-sharing dwellings and public rental dwellings offered below market prices, which are also expected to play a role in supplying housing for end users.
According to the urban renewal industry on the 19th, Korea Land & Housing Corporation (LH) plans to propose the designation of the "Seoul Mok 4-dong area near Gangseo High School urban public dwellings complex district" to the Ministry of Land, Infrastructure and Transport in Nov. LH held a second project briefing session for local residents on the 16th and disclosed future implementation plans and estimated sale prices and contribution amounts.
The urban public dwellings complex project (urban complex project) is a policy intended to accelerate development under public leadership by offering benefits such as higher floor area ratios and shorter project timelines in areas like station influence zones, quasi-industrial districts, and low-rise residential neighborhoods where redevelopment is difficult as a private project due to low profitability.
It is a housing supply model pursued by the Moon Jae-in administration in 2021, and by Dec. 2023, after the launch of the Yoon Suk-yeol administration, 46 candidate sites (34 in Seoul) were selected over 10 rounds in Seoul, Busan, and the greater capital area. However, the project failed to gain speed after the launch of the Yoon Suk-yeol administration. The Lee Jae-myung administration, however, expressed its intention to push the project actively, saying in the "plan to expand housing supply" announced on Sept. 7 that it "plans to break ground on 50,000 units in the greater capital area by 2030 through season 2 of the public urban complex project."
An official in the urban renewal industry said, "LH plans to propose the designation of an urban public dwellings complex district to the Land Ministry in Nov., followed by consultations with related agencies and resident consent," adding, "We expect the area to be designated next year, kicking off the full redevelopment schedule."
The site is a low-rise residential area covering 190,317.7 square meters (about 57,571.1 pyeong) around 772-1 Mok-dong, Yangcheon District. It is close to Mokdong New Town complexes 1 to 4, Mok-dong Station on Seoul Subway Line No. 5, Gangseo High School, and Yeongdo Middle School. It also borders Deungchon-ro to the west and Mokdong Jungangseo-ro to the south.
At the site, 329 single-family dwellings (47.3%) account for half of the housing, and dwellings older than 20 years make up 73.0% (508 buildings) of the total. The zoning currently mixes a portion of Type 1 general residential area (1.1%), Type 2 general residential area (92.8%), and Type 3 general residential area (6.1%). LH plans to upgrade all of these to Type 3 general residential area and proceed with a floor area ratio of 303.6% for 4,206 households. As reviewed by the preliminary review committees of the Land Ministry and the Seoul Metropolitan Government, the maximum floor area ratio was set at 303.6% or lower, and LH intends to apply this ratio in line with that decision.
Of the 4,206 households, 505 will be provided as public rentals. The remaining 3,704 households will be filled with public sales—consisting of association member sales and general sales—totaling 3,283 households, and profit-sharing dwellings totaling 421 households. Profit-sharing dwellings are a model in which a public housing operator such as LH sells dwellings at low prices, and the occupant shares part of the capital gains with the operator when disposing of the dwelling after residing for a certain period. By exclusive area, the plan is ▲ 20-pyeong type (exclusive 46 square meters) 575 households ▲ 25-pyeong type (exclusive 59 square meters) 1,849 households ▲ 34-pyeong type (exclusive 84 square meters) 1,505 households ▲ 42-pyeong type (105 square meters) 280 households.
Real estate market experts predict the Mok 4-dong area near Gangseo High School, an urban complex project site, will draw strong interest from end-user homebuyers and investors because it is adjacent to the Mok-dong New Town apartment complexes undergoing reconstruction and boasts a prestigious school district.
Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "It is a location where Mok-dong Station can be reached on foot within 10 minutes and where the infrastructure, including Mok-dong's school district, can be fully utilized." Park Hap-su, an adjunct professor at Konkuk University Graduate School of Real Estate, said, "Being adjacent to Mok-dong New Town complexes 3 and 4, it will become a living area that shares Mok-dong's key infrastructure after redevelopment."
An official in the urban renewal industry said, "It is one of the most preferred areas among the urban public dwellings complex project sites currently being promoted by the government," adding, "Once redevelopment proceeds, opportunities to supply dwellings will increase even for end users who have struggled to enter Mok-dong due to high home prices."