Eunma Apartments in Daechi-dong, Gangnam District, the biggest redevelopment prize in Seoul, is aiming to start relocation in the first half of next year, signaling a mass move by about 3,100 tenant households. If households renting at Eunma for school districts while leasing out their own homes elsewhere return to owner-occupation following tax reforms centered on primary residence, a "chain relocation" could occur in which the tenants of those dwellings also have to find new homes. With Seoul jeonse prices already rising steeply and more than 80,000 households slated to relocate for redevelopment projects through 2028, some warn that relocation sparked by Eunma could exacerbate Seoul's jeonse shortage beyond Daechi-dong.
According to the redevelopment industry on the 13th, the Eunma Apartments reconstruction and maintenance union recently sent an official letter titled "Guidance on relocation plans" to tenants. The union plans to survey tenants' preferred moving time and intended areas through the 28th of this month, aiming to begin relocation in the first half of 2027.
Eunma Apartments received approval for the project implementation plan from Gangnam District on the 2nd of last month. The union aims to break ground in 2028 after approval of the management and disposal plan, relocation, and demolition. However, the actual relocation timing may vary depending on remaining procedures such as approval of the management and disposal plan.
In the letter, the union said it plans to file building delivery lawsuits and injunctions to prohibit transfer of possession against all tenants simultaneously with the relocation start notice. It would file first, then withdraw suits for households that complete relocation. The notice also said that if groundbreaking is delayed due to a tenant's refusal to move, the union could file lawsuits for damages and unjust enrichment.
The biggest variable in the rental market is the direction of movement by about 3,100 tenant households, estimated at roughly 70% of the total 4,424 households. Eunma Apartments draws strong demand from families seeking Daechi-dong's cram school district. Industry officials believe many households rent at Eunma for their children's education even while owning a home in another area.
The government's tax reform plan could influence their choices. The plan expands comprehensive real estate tax benefits for single-home owners who actually live in their dwellings while reducing deductions for single-home owners who do not reside in the dwellings they own. This increases the likelihood that Eunma tenants who own nonresidential dwellings will return to their own homes to reduce tax burdens or dispose of the dwellings.
If they return to their own homes, the tenants living in those dwellings may have to find new homes when their lease expires. That is because a landlord can refuse a tenant's renewal request when the landlord intends to move in. Analysts say Eunma's relocation could not only boost rental demand around Daechi-dong but also lead to a "second shock" that reduces rental listings in other parts of Seoul.
Seoul's jeonse market is already experiencing fewer listings and rising prices. According to big data real estate firm Asil, as of the 6th, Seoul apartment jeonse listings stood at 20,937, down 14.1% from Oct. 15 last year. A KB Real Estate survey found that in June, Seoul apartment jeonse prices rose 1.43% from a month earlier, the highest increase this year. The median jeonse price for apartments in the 11 autonomous districts of Gangnam was 700 million won, and the average was 801.93 million won.
Relocation demand from redevelopment projects will also continue. According to the Seoul Metropolitan Government, from this year through 2028, 83,630 households in Seoul are slated to relocate due to redevelopment and reconstruction. That breaks down to 25,230 households this year, 13,144 next year, and 45,256 in 2028. Beyond Eunma Apartments, large-scale Gangnam-area reconstruction complexes such as Jamsil Jugong Complex 5 in Songpa District are also preparing to relocate. While redevelopment projects increase housing supply in the long run, a gap occurs from relocation through completion during which the number of existing dwellings declines.
An industry official said, "Aging reconstruction complexes have supplied relatively affordable rental dwellings in Seoul," and added, "Authorities should adjust relocation timelines by business sites so that large complexes do not relocate all at once at a specific time, and prepare measures to reduce shocks to surrounding rental markets."