Lawmaker Jang Jong-tae analyzes data submitted by Korea Housing and Urban Guarantee Corporation

Pre-sale price per 3.3 square meters rises from 31.3 million won to 52.9 million won

Increases seen across Seoul, not just Gangnam, Seocho and Songpa

'Need to examine whether housing stability for end-users is actually being achieved'

A rendering of the planned reconstruction of Garak Samik Mansion apartment complex in Songpa-dong, Songpa-gu. [Provided by Seoul Metropolitan Government]
A rendering of the planned reconstruction of Garak Samik Mansion apartment complex in Songpa-dong, Songpa-gu. [Provided by Seoul Metropolitan Government]

Pre-sale prices at Seoul redevelopment and reconstruction project sites have surged roughly 70 percent over the past five years, while the share of units available for general public subscription has fallen to just 22 percent of total supply from such projects.

Democratic Party of Korea lawmaker Jang Jong-tae, a member of the National Assembly's Land, Infrastructure and Transport Committee, analyzed data submitted by the Korea Housing and Urban Guarantee Corporation showing that the average pre-sale price per 3.3 square meters across 62 Seoul redevelopment and reconstruction sites that received cooperative project cost loan guarantees between 2021 and August this year rose from 31.3 million won ($22,700) in 2021 to 52.9 million won this year.

The increase reflects a broad rise in pre-sale price levels across project sites, not just a handful of ultra-premium developments in Gangnam. Excluding the three Gangnam districts — Gangnam, Seocho and Songpa — the average pre-sale price climbed from 25.5 million won in 2021 to 42.5 million won this year. The median pre-sale price also nearly doubled over the five-year period, rising from 27 million won to 50.5 million won.

Some sites have already crossed the 100 million won per 3.3 square meters threshold. A project in Seocho-gu posted a pre-sale price of 101 million won per 3.3 square meters in November last year, becoming the first to exceed that mark. This year, sites in Seocho-gu and Dongjak-gu have listed pre-sale prices of 95 million won and 77 million won, respectively.

Even as pre-sale prices have climbed steeply, the share of units set aside for general public subscription within total redevelopment and reconstruction supply has actually declined. In 2021, general subscription units numbered 2,401 out of 8,129 total units supplied at Seoul project sites, accounting for 29.5 percent.

That share rose to 33.5 percent in 2022 and 37.8 percent in 2023 before falling for three consecutive years. As of August this year, general subscription units stood at 4,361 out of a total supply of 19,962 units, limited to just 21.8 percent.

"The Seoul Metropolitan Government has touted accelerating redevelopment and reconstruction projects and expanding supply as a key achievement in housing stability, but pre-sale prices are rising rapidly while the share of general subscription units is shrinking," Jang said. "We need to examine how much the expansion of supply through these projects is in fact translating into housing stability for prospective homebuyers without existing properties."

He added that while redevelopment and reconstruction projects are a necessary tool for supplying housing in urban areas, ensuring that the gap in housing accessibility does not widen in the process is also an important responsibility of the Seoul Metropolitan Government. He called for scrutiny not only of total supply volumes but also of the number of general subscription units and whether pre-sale prices remain within reach for end-users.


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