Seoul Construction Starts Rise 44.4%... Eight in 10 Housing Permits Are for Redevelopment Projects

[Financial News] Housing supply in Seoul is gaining momentum this year, with both housing permits and construction starts increasing. While redevelopment projects are leading supply, the previously sluggish non-apartment housing sector is also showing a clear recovery.
Seoul Metropolitan Government said on the 7th that 28,634 housing units received permits from January through July this year. This was 6.1% higher than the 26,987 units recorded during the same period last year and 36.7% above the three-year average of 20,948 units for the January-to-July period.
Apartment permits totaled 23,480 units, down 1.6% from the 23,852 units recorded during the same period last year. However, the figure was 27.6% higher than the three-year average of 18,395 units for the same period.
The increase in construction starts, which indicates that housing projects have entered the actual construction phase, was particularly notable. Through July this year, construction starts in Seoul totaled 19,507 housing units, up 44.4% from 13,508 units during the same period last year. The figure was also 34.6% higher than the three-year average of 14,497 units for the same period.
Redevelopment projects, which Seoul Metropolitan Government has been accelerating as a key pillar of expanded housing supply, are also translating into construction starts. Apartment construction starts rose 36.1% to 14,995 units from 11,014 units a year earlier. Of that total, 12,211 units, or 81.4% of all apartment construction starts, were redevelopment projects. Major projects of 1,000 units or more that began construction this year include Heukseok 11 District, with 1,515 units; Sillim 2 District, with 1,430 units; and Junggye bon-dong, with 3,178 units.
Non-apartment housing also posted a sharp rebound in permits and construction starts. Through July this year, permits for non-apartment housing totaled 5,154 units, up 64.4% from 3,135 units during the same period last year. Compared with the three-year average of 2,553 units for the same period, the figure increased 101.9%, more than doubling. Construction starts totaled 4,512 units, up 80.9% from 2,494 units during the same period last year and 48.3% above the three-year average of 3,043 units. This is expected to help diversify the existing supply structure, which has been heavily concentrated on apartments.
Seoul Metropolitan Government plans to carry this expansion in supply through to actual move-ins. A total of 48,000 newly built apartment units are scheduled for occupancy by 2027. To meet its target of starting construction on 310,000 units by 2031, the city is working with district offices to inspect delayed projects and is making every effort to manage construction schedules.
[email protected] Jeon Min-kyung Reporter