Housing construction starts in Seoul rose more than 40% in the first seven months of this year. Redevelopment and rebuilding projects accounted for more than 80% of apartment starts, driving the increase, while permits and starts for non-apartment homes such as low-rise multi-unit housing rebounded sharply after a prolonged slump.
Seoul started construction on 19,507 homes from January through July, up 44.4% from 13,508 a year earlier, the city government said on the 7th. The figure was also 34.6% higher than the 14,497 average for the same period from 2023 to 2025.
The city government sees the trend as a sign that housing starts have passed a trough and entered a recovery phase. Projects delayed by surging construction costs, high interest rates and a contraction in real estate project financing are returning to the construction stage, led by redevelopment work, the city said.
Permits, a leading indicator of future supply, also increased. Seoul issued permits for 28,634 homes in the January-July period, up 6.1% from a year earlier and 36.7% above the 20,948 average for the same period over the past three years. Apartment permits totaled 23,480 units, down 1.6% from last year but 27.6% higher than the three-year average.
Redevelopment led apartment supply in particular. Apartment starts reached 14,995 units through July, up 36.1% from a year earlier. Of that total, 12,211 units, or 81.4%, came through redevelopment, rebuilding, small-scale improvement and street-block housing projects. Large complexes of 1,000 units or more that broke ground this year include Heukseok District 11 with 1,515 units, Sillim District 2 with 1,430 units and Jungge-bondong with 3,178 units.
Redevelopment also dominated at the permit stage. Such projects accounted for 19,447 units, or 82.8%, of all apartment permits. Major complexes approved this year include Jamsil Jugong Complex 5 with 6,411 units, Hannam District 5 with 2,592 units, Geoyeo Saemaeul with 1,678 units, the Dokbawi Station area with 1,481 units and Gajaeul District 7 with 1,426 units.
Non-apartment housing, where concerns about a supply cliff had run high, also showed a marked recovery. Permits for such homes totaled 5,154 units in the January-July period, up 64.4% from a year earlier and 101.9% above the three-year average, more than double that level. Starts came to 4,512 units, up 80.9% from a year earlier and 48.3% above the three-year average. The city said the supply base is recovering not only for apartments but also for non-apartment homes, which serve as a key housing ladder for young adults and single-person households.
The permits and starts added this year will not translate into move-ins right away. Permits mark the first stage of a project, and it takes several years after groundbreaking before residents move in, so the question is whether the current increase holds. New apartments completed or scheduled for occupancy in Seoul total 48,000 units, with 26,000 this year and 22,000 next year.
The city government aims to accelerate supply, centered on redevelopment, to reach a total of 310,000 housing starts by 2031. To that end, it has elevated oversight of redevelopment project schedules to the vice mayor level and is running special progress meetings that review delayed sites with the city's 25 district governments. It also plans to closely manage core supply projects that can break ground within three years.
"The fact that permits and starts are both rising in Seoul this year, along with a recovery in non-apartment supply, is a positive signal that the foundation for housing supply is becoming firmer," said Myung No-jun, head of the Seoul metropolitan government's housing bureau. "We will closely manage major projects so that the expansion in supply leads to actual move-ins."
