Seoul City is again moving to sell the landmark land site in Sangam Digital Media City (DMC) in Mapo District, Seoul, a deal that did not go through despite six sale attempts over 20 years. By easing regulations so a supertall building of at least 50 stories is no longer mandatory and the residential ratio can be raised to as high as 60%, the development of this key site in western Seoul is back on track.
According to Seoul City and others on the 23rd, the city recently reported to the Seoul Metropolitan Council that it plans to issue the seventh sale notice for the DMC landmark land site this month. A Seoul City official said, "We are finalizing the supply guidelines, and plan to issue the sale notice between the end of June and no later than mid-July," adding, "There are private developers showing interest after the district unit plan change." After the sale notice, the city will hold a briefing session and select a preferred bidder in the second half.
The sale targets are lots 1645 and 1646 in Sangam-dong, Mapo District, Seoul. The total area is 37,262㎡. At the sixth sale notice in 2024, the land price was 836.5 billion won. The price for the seventh sale will be set again after appraisal.
The DMC landmark land site has been pursued by Seoul City since 2004 as a supertall landmark development to represent the western part of Seoul. In 2008, 25 investors, including Daewoo Engineering & Construction, took part in a plan to build the 133-story "Seoul Light Tower" with a project cost of 3.7 trillion won. But the contract was canceled in 2012 amid difficulties in financing. Since then, Seoul City has attempted several sales, all of which fell through, and the site remains vacant to this day.
This time, Seoul City significantly lowered the sale conditions. In March, it changed the district unit plan for the area to ease development regulations. Previously, certain designated uses such as an international convention facility had to be included above a set ratio, and development conditions premised on a supertall of at least 50 stories also proved burdensome. Under the revision, the required ratio for designated uses was reduced to 40% from 50%, and international convention facilities were removed from the mandatory list. The cap on the residential ratio, which had been 30% or less, was also lifted, opening the way to fill up to the remaining 60%—outside the designated uses—with residential facilities.
The question is whether private developers will actually step in. In the development industry, the view is that investment conditions have improved compared with the sixth sale last year, and with profitability enhanced by the expanded residential ratio, a fair number of developers and builders are likely to show interest. A construction industry official said, "Last year, the tight project financing (PF) market made it difficult to pursue large-scale development projects," adding, "This time, profitability has improved with the higher residential ratio, boosting expectations that the sale will go through."