Seoul non-apartment ground-breakings surge 81% from last year, signaling housing supply recovery

Housing permits and ground-breakings through July exceed 3-year average

Apartment ground-breakings up 36.1% year on year

'48,000 new units set for move-in through next year'

Villas and other non-apartment buildings are seen from Seoul Sky at Lotte World Tower in Songpa-gu, Seoul. [Yonhap]

Seoul's urban renewal projects are gaining momentum, pushing cumulative housing permits and ground-breakings through July above the three-year average. Ground-breakings for non-apartment units — which serve as a key entry point on the housing ladder for young people and single-person households — surged more than 80 percent, signaling a positive turn for housing supply.

The Seoul Metropolitan Government said Monday that housing permits issued from January through July totaled 28,634 units, while ground-breakings reached 19,507 units. Compared with the three-year average for the same period, permits were up 36.7 percent and ground-breakings rose 34.6 percent.

"Permits and ground-breakings are representative indicators of the future scale and pace of actual housing supply," the city said, adding that supply expansion policies — including the revitalization of redevelopment and reconstruction projects and shorter project timelines — "are translating into actual permits and ground-breakings."

Ground-breakings in Seoul through July were up 44.4 percent from the same period last year, when 13,508 units broke ground. Apartment ground-breakings reached 14,995 units, a 36.1 percent increase from 11,014 units a year earlier. Redevelopment and reconstruction projects accounted for 12,211 of those starts, or 81.4 percent of all apartment ground-breakings. Major complexes that broke ground this year include the Heukseok District 11 complex (1,515 units), the Sillim District 2 complex (1,430 units) and the Junggye Bondong complex (3,178 units).

Seoul housing ground-breaking figures for January–July. [Seoul Metropolitan Government]

However, apartment permits slipped 1.6 percent year on year, with 23,480 units approved from January through July compared with 23,852 units in the same period last year. Redevelopment and reconstruction projects made up 19,447 of those permits, or 82.8 percent of the total. Large-scale complexes receiving permits this year had an outsized impact, including Jamsil Jugong 5 (6,411 units), Hannam District 5 (2,592 units) and Geoyeo Saemaul (1,678 units).

Non-apartment supply, which had been subdued for some time, is also rebounding. Permits for non-apartment units through July totaled 5,154, up 64.4 percent from 3,135 units in the same period last year. That figure is more than double the three-year average of 2,553 units for the same period.

Seoul housing permit figures. [Seoul Metropolitan Government]

Ground-breakings for non-apartment units also rose sharply. A total of 4,512 non-apartment units broke ground through July, up 80.9 percent from 2,494 units in the same period last year and 48.3 percent above the three-year average of 3,043 units.

The city said the pronounced upward trend in permits and ground-breakings points to sustained housing supply that residents will be able to feel. New apartment move-ins in Seoul are projected to reach 26,000 units in 2026 and 22,000 units in 2027, totaling 48,000 units through next year.

"The simultaneous increase in permits and ground-breakings this year, along with the recovery in non-apartment supply, is a positive signal that Seoul's housing supply foundation is strengthening," said Myeong No-jun, head of the Seoul Metropolitan Government's housing bureau. "We will closely manage key projects to ensure the supply expansion translates into actual move-ins."

hope@heraldcorp.com