SEOUL CITY'S MEASURES TO MEET HOUSING DEMANDS

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As it becomes increasingly hard to find land to build houses in Seoul, the city government is looking to turn old rental apartments into high-rises to meet the growing housing demand.

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​Nowon-gu district, Seoul. These five-story rental apartments were built in 1989. They've already passed the 3-decade reconstruction limit last year. The central and Seoul city governments are looking to increase housing supply by rehabilitating these types of old rental apartments. Roughly 56,000 rental units in the capital will be 3 decades old within the next five years, making them eligible for reconstruction. The government plans to start the rehab project on two rental complexes in Nowon-gu District first and then expand out to Gangseo-gu and Gangnam-gu Districts where there's higher demand for new housing. More housing units are expected to be available if the existing apartments are converted to high-rises by making additional modifications.

[Soundbite] AHN MYEONG-SUK(REAL ESTATE INVESTMENT SUPPORT CENTER, WOORI BANK) : "It will be a good policy that provides diverse choices since many rental apartments can be provided at good locations in a short period of time."

The biggest challenge is formulating tenant relocation measures. Many long-time tenants do not want to move out.

[Soundbite] (RESIDENT OF A RENTAL APARTMENT(VOICE MODIFIED)) : "(How long have you lived here?) 30 years. I don't want to move. Transportation is convenient. I like living here."

If rapid reconstruction is to take place, the tenants need places to live during that period. Also, if high-rises are to replace old apartments, surrounding traffic networks should be expanded and additional residential measures must be devised. The government will finalize its housing supply increase plan which includes reconstruction of rental apartments, residential land development of Taeneung Country Club, and procurement of unused spaces in the city.