'At my age, searching for a home in Paju and Wonju': Elderly Yeouido owners squeezed out by jeonse shortage

Son, a 73-year-old resident of Daeyo Apartment in Yeouido-dong, Yeongdeungpo-gu, Seoul, was clutching a large-waste disposal receipt when reporters met her on Tuesday. Having lived in the complex for 25 years, she was clearing out her furniture piece by piece ahead of the relocation set to begin two days later. With affordable jeonse options in Seoul increasingly scarce, she had ventured as far as Paju and Wonju in search of a unit in the 100 million won ($73,600) range.

Daeyo Apartment — widely regarded as Yeouido's first reconstruction project — begins its full relocation process on Thursday. Notices posted throughout the complex warn that "all households must complete their move by March 31, 2027," alongside congratulatory banners from contractor Samsung C&T.

The complex is set to be transformed from its current 12-story, 576-unit configuration into a 49-story, 912-unit development to be called Raemian Wyths. Designated as the first site under Seoul's fast-track integrated planning advisory program, it received management and disposal plan approval in May — the first among Yeouido reconstruction complexes — after its association was established in January 2024.

The project has moved faster than other reconstruction sites in the area. From association formation to the actual relocation stage took roughly two years and four months, with the project clearing major milestones — including project implementation approval and management and disposal plan approval — in quick succession. That pace is considered unusually swift given how long such steps typically take in urban renewal projects. As the first complex to enter the relocation phase, it is drawing close attention to how other nearby projects will proceed.

The rapid progress has been reflected in prices. A 133-square-meter unit sold for 3.9 billion won in July, and a 95-square-meter unit fetched 3.4 billion won in August — both record highs. As transactions have continued, some long-term association members have moved to cash out at prices that already factor in reconstruction expectations. A total of eight sale transactions have been recorded at Daeyo Apartment since June, and as of Wednesday, 55 listings were available on Naver Real Estate.

However, industry insiders at the scene said a significant number of those listings are duplicates. A representative of a nearby real estate agency, identified only as Agency A, said sellers tend to post the same unit across multiple platforms, making supply appear larger than it is. "In reality, there are probably only two or three units available per floor plan," the representative said.

Most sellers are elderly, long-term owners who qualify for association membership transfer. Daeyo Apartment falls within a speculative overheating zone, where membership transfers are generally restricted after association establishment. However, owners who meet specific conditions — holding the property for at least 10 years and residing there for at least five — are eligible for an exemption.

Still, the upward momentum in prices and transactions has slowed since the government unveiled its tax reform package. A representative of another agency in Yeouido-dong, identified as Agency B, said that before the Aug. 3 tax reform announcement, one deal was closing every week on the back of reconstruction investment enthusiasm, with purchase inquiries flooding in. "Now both are down to about a third of that," the representative said. "Buyers are watching to see how the National Assembly handles the bill, as hurdles like loans and property-holding tax burdens have multiplied."

The most pressing concern for residents is securing temporary housing for what could be several years. The head of a real estate agency in front of Daeyo Apartment, identified as Agency C, said most residents want to stay in Yeouido but jeonse supply there has all but vanished. "On the rare occasion a unit does come up in Yeouido, it's listed at prices that used to be sale prices," the representative said.

As a result, residents are scattering to nearby neighborhoods such as Dangsan, Mapo and Yeongdeungpo. Families with children are also considering moves to Mokdong or Daechi-dong for schooling reasons, while some elderly residents are weighing a move into a silver town.

Reactions among residents varied depending on their circumstances. A man in his 70s surnamed Park, who has lived in Yeouido for 45 years, plans to move into a family-owned home in Ahyeon-dong. "I can go without taking out a loan, so the burden is manageable," Park said. "The reconstruction contribution fee is steep, but I feel it's worth it." He added that he was pleased with how quickly the project had advanced even within Yeouido, and said he hoped the new complex would feature well-designed community facilities and walking paths when he returns.

A woman in her 40s surnamed Kim, who secured a jeonse unit in Mokdong early for her middle school-aged child, said she downsized from a 99-square-meter unit to a 66-square-meter one. "I heard the jeonse market was getting tough, so I figured it was better to move fast — I locked it in over the summer," she said.

Some residents felt more burdened than hopeful. One said that after holding onto a single home for 25 years, they worried whether they could afford the property taxes on a newly built unit even if they received one. Looking out at the complex on the verge of demolition, the resident added, "They say it'll take at least six years until move-in. I can't even picture whether I'll be able to come back."

Nearby real estate agents said the accelerating pace of the project had weighed heavily on elderly owners in particular in recent months. The head of Agency B said some elderly homeowners had spent a long time deliberating whether to hold on or sell. "Those who can't afford the contribution fee are leaning toward selling and gifting at least part of the proceeds to their children," the representative said. "But lately, even units that are listed aren't selling well."

Experts said the jeonse shortage has significantly increased the relocation burden on residents of redevelopment and reconstruction sites. Seo Gwang-chae, a real estate professor at Hanyang Cyber University, said the market is making it extremely difficult to find jeonse housing. "Relocation subsidies aren't generous enough, so residents without cash on hand may have no choice but to move far from where they've built their lives," Seo said.

He added that relocation demand is a major consideration in redevelopment and reconstruction projects, and that if the jeonse and monthly rent shortage worsens, subsequent projects could see their timelines adjusted accordingly.