Business · Economy · 1 day ago
Rebuilding costs push Seoul homeowners’ extra payments sharply higher
Seoul redevelopment owners face sharply higher extra payments to receive newly built apartments in place of their current homes.
At Daechi-dong’s Eunma complex, the expected payment for an 84-square-metre apartment rose from 180 million won to 430 million won in a year.
Owners in other projects also face large bills: the estimate is 541 million won at Apgujeong District 3 and 700 million won at Yeouido’s Sujeong apartment complex.
Higher building costs and longer construction schedules are driving the increases, alongside spending on upgraded interiors and shared facilities.
Construction costs rose 5.98% from a year earlier in August, while longer projects also add financing costs.
The rising bills are making redevelopment less clearly profitable and could become an obstacle to adding homes in Seoul.
Some existing high-rise sites have limited room to add homes for sale, and industry representatives say incentives such as higher permitted building density could improve project finances.
Estimates may continue to rise before construction starts, but no specific policy decision or project timetable is given.
Expected extra payments for homeowners in major Seoul redevelopment projects have risen sharply amid higher construction and financing costs.
At Daechi-dong’s Eunma apartment complex, the projected payment for an 84-square-metre unit rose by 250 million won in a year to 430 million won.
Homeowners in other areas, including Apgujeong and Yeouido, also face payments of several hundred million won.
Rising construction costs, longer building schedules and competition to add high-end features are driving the increases.
The growing burden has raised questions about the profitability of redevelopment projects and their role in expanding housing supply.
- Who
- Homeowners in major Seoul reconstruction and redevelopment projects.
- What
- Their expected extra payments have risen sharply, with some facing several hundred million won.
- When
- The reports were published on October 12, 2026; Eunma’s estimate rose over the year from September 2025 to September 2026.
- Where
- Seoul, including Daechi-dong, Apgujeong-dong and Yeouido.
- Why
- Construction and financing costs have increased, with longer project schedules and high-end design competition also adding costs.
This story does not have two clearly opposing sides.
Eunma’s projected extra payment for an 84-square-metre unit was 180 million won.
Seoul’s construction cost index reached 138.74, up 5.98% from a year earlier.
Eunma’s projected payment for the same unit had risen to 430 million won.
Reports described rising projected contributions at major Seoul redevelopment sites.
- Eunma, 84-square-metre unit
- Projected extra payment: 430 million won
- Eunma, year-on-year increase
- 250 million won
- Apgujeong District 3, 84-square-metre unit
- Projected extra payment: 541 million won
- Yeouido Sujeong, 84-square-metre unit
- Projected extra payment: 700 million won
- Construction cost index, August 2026
- 138.74; up 5.98% year on year
What people are saying
The era when reconstruction automatically led to profits is coming to an end.
It is almost meaningless to calculate the current estimates; we should expect contributions to keep increasing until construction begins.
The 52-hour workweek and stricter safety standards are lengthening construction schedules and increasing financing costs.
Loans are unavailable, while contributions and taxes are rising, so the burden is heavy.
Sources
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