Bukahyeon Zone 3 prices jump 200 million won after Oh Se-hoon's re-election

Oh Se-hoon's victory in the June 3 local elections — securing a fifth term as Seoul mayor on a People Power Party ticket — is already rippling through the real estate market, with buyers betting that private reconstruction and redevelopment projects will accelerate under his leadership. Analysts say redevelopment villas, which face fewer lending and tax restrictions than apartments, are drawing particular interest.

A multi-unit house in the Bukahyeon Zone 3 housing redevelopment district in Seodaemun-gu has come to market with an initial investment of 1.19 billion won (about $860,000), according to industry sources Tuesday. The property entitles the buyer to an 84-square-meter move-in right upon project completion. With an appraised value in the mid-200 million won range and a premium of 1.096 billion won on top, the total sale price comes to roughly 1.33 billion won. That marks a rise of nearly 200 million won in about three months — the same type of move-in right was listed at an initial investment of 1 billion won in March.

In Yongsan-gu, a redevelopment property in the Hannam Zone 4 housing redevelopment district offering a "1+1" package — a unit in the 50-pyeong range (1 pyeong equals 3.3 square meters) plus a 25-pyeong move-in right — has been listed at 8 billion won, with an initial investment of around 4.9 billion won. As recently as early May, an equivalent "1+1" listing in the same size range was offered as a distressed sale at 6 billion won, with an initial investment of 3.435 billion won. Even accounting for the distressed-sale discount, the initial investment alone has risen by nearly 1.5 billion won.

Properties are also moving quickly. In Eunpyeong-gu's Galhyeon Zone 1, which has completed relocation and demolition and is set to break ground, the premium on a 59-square-meter unit stands at around 550 million won, bringing the total purchase price to 1.032 billion won. A local real estate agent said listings "are selling fast."

Market watchers say the surge is closely tied to Oh's election win, which was driven in part by voter sentiment on housing. Throughout the campaign, Oh pledged to overhaul the city's Fast-Track Integrated Planning program to improve the financial viability of redevelopment and reconstruction projects and push them more quickly toward ground-breaking.

Oh's housing campaign pledges center on expanding supply through private redevelopment. He has championed what he calls "overwhelming supply," promising to break ground on 310,000 units by 2031. The Fast-Track Integrated Planning program has already delivered results in the early stages of redevelopment — designating zones and drawing up improvement plans — but his fifth term is expected to focus on turning those plans into actual construction starts. With new apartment supply in Seoul growing increasingly scarce, expectations of a faster push are building at major reconstruction complexes in the Gangnam area and along the Han River belt, as well as at redevelopment sites in northern Seoul. According to Real Estate 114, the number of new Seoul apartments scheduled for move-in is projected to fall from 32,370 units last year to 18,880 this year — a drop of 13,490 units, or 41.7 percent.

"There is a learned-behavior effect from the Moon Jae-in era, when apartment prices rose first and redevelopment villa prices followed sequentially — and that appears to be driving renewed demand for villas," a pre-sale industry official said. "Particularly in Seoul, where new apartments are scarce, buying interest in move-in rights will only grow stronger."