So Many ‘Old Apartments’... Numerous Buildings Over 30 Years Old

[Financial News] In Seoul, apartments completed more than 30 years ago now account for roughly one-third of all apartment units.
According to Real Estate R114 on the 8th, apartments over 30 years old make up about 30% of the total stock in Seoul. By district, more than half of all apartments in Nowon District (61%) and Dobong-gu (60%) have been standing for over 30 years, meaning they have reached the minimum age required for reconstruction.
Areas with a relatively low share of apartments older than 30 years include Seongbuk District (5%), Eunpyeong District (10%), and Dongdaemun District (11%). Large-scale redevelopment projects such as Gireum New Town, Jangwi New Town, Eunpyeong New Town, and Imun–Hwigyeong New Town have supplied many new homes there, increasing the proportion of newly built housing.
As of last year, redevelopment projects accounted for 91% of all new apartment move-ins in Seoul, excluding rental units. The share was 78% in 2022, 87% in 2023, and 81% in 2024, showing some year-to-year variation. Even so, most new apartment supply each year is effectively coming through redevelopment.
The government is currently maintaining a policy stance that emphasizes public-sector-led housing supply. However, under the September 7 Real Estate Measures, projects to use aging government office sites in central urban areas for housing are not scheduled to break ground until 2027. As a result, there will be a time lag before end-users can feel any tangible impact.
Real Estate R114 stated, “In Seoul, where it is difficult to secure new development sites, the importance of redevelopment projects is growing. However, the Reconstruction Excess Profit Recovery System and floor area ratio benefits focused on public-sector redevelopment are acting as variables that slow project timelines and are weakening momentum.” The firm added, “Because a supply structure centered solely on the public sector has clear limits, there is a need to improve project profitability to revitalize private redevelopment projects, including easing the Reconstruction Excess Profit Recovery System, providing FAR incentives, and relaxing financing rules for relocation loans.”
act@fnnews.com Choi Ah-young Reporter