South Korea's apartment stock has surpassed 13 million units, but the share of aging buildings is climbing fast. In Seoul, roughly three in 10 apartment units are more than 30 years old. Against that backdrop, an expert has warned that the current rush to build super-tall apartment towers could return as enormous maintenance costs and rebuilding burdens for future generations.
Apartment Stock Tops 13 Million; 28.5% of Seoul Units Are Aging
According to the Korea Real Estate Board, the number of apartment units subject to official price assessment for multi-unit housing stood at 13.01 million as of Jan. 1 this year, up 260,000 from a year earlier. That marks an increase of about 61% from 8.09 million in 2010.
Aging is also accelerating. Data compiled by Real Estate R114 in June last year showed that of Seoul's 1,711,444 apartment units, 488,457 units, or 28.54%, had passed 30 years since completion. That is higher than the national average of 24.85%.
In Nowon-gu and Dobong-gu, the share of aging apartments reached 62.37% and 59.56%, respectively.
New supply is also set to shrink. Real Estate R114 data showed that 25,281 apartment units in Seoul are scheduled for move-in this year, down 11,822 from 37,103 last year.
The figure is projected to fall to 18,682 units in 2027 and 13,683 units in 2028. Yongsan-gu, Jongno-gu and Gwanak-gu are expected to see no scheduled move-ins this year.
Because apartments take considerable time to move from permitting to completion, supply cannot easily be restored over a short period.
'Super-Tall Apartments May Fall Into Decline,' Expert Says of Fee Burden
Against this backdrop, one argument holds that super-tall apartments could become a serious social burden over the long term.
Seo Dong-ki, a real estate studies scholar (Ph.D.) who recently appeared on the YouTube channel "Pyo Young-ho tv," which has about 870,000 subscribers, warned that "building many super-tall apartments will be an enormous disaster for our future generations."
Seo's concern is not construction costs at the time of building, but maintenance and management problems that will emerge decades later. Under the Building Act, super-tall buildings are defined as structures of at least 50 stories or at least 200 meters in height. They require more complex equipment than ordinary apartments and must also secure refuge safety zones for emergencies such as fires, which drives up construction costs.
As buildings age, elevators, piping and various types of equipment must be replaced. Because super-tall buildings are much taller, repair work becomes more complicated and costs can run higher.
The differing financial circumstances of residents was singled out as a particular problem. Seo explained that "if only people in good locations with very high incomes live there, they can spend the money and keep making repairs, but when management fees and repair costs soar in a situation where residents' financial capacity varies widely, you hit a wall."
If a growing number of residents cannot afford management and repair costs, the building may not be properly maintained, he said.
He argued that if residents with financial means repeatedly leave the complex while relatively lower-income groups move in, living conditions would deteriorate and the complex could eventually fall into decline.
'Rebuilding Will Also Be Difficult': Demolition Costs Decades Later
Super-tall apartments may also run into difficulties when rebuilding is pursued after they age.
Complexes that already have high floor area ratios can secure only a limited number of additional housing units through rebuilding. If presale revenue from general sales is insufficient to cover project costs, the contributions required from existing owners can rise.
Costs have drawn attention at the Eunma apartment complex in Seoul's Daechi-dong as well, after reports that reconstruction association members would have to contribute more than 400 million won to obtain a unit of the same size in a rebuilt complex.
Seo also pointed to the limits of the wall-type structure widely used in Korean apartments. In wall-type construction, piping and other systems are often installed inside the walls, which can make repairing and replacing equipment difficult as a building ages.
By contrast, column-and-beam structures are relatively easier to maintain, but their higher initial construction costs make them harder to adopt, he said.
Seo cautioned that an excessive push to supply super-tall apartments could leave future generations holding buildings that are difficult both to maintain and to demolish.
"A romantic attachment to super-tall apartments could turn into senility later on," he said, warning against development that fails to account for long-term management costs.
He added that if aging buildings are not properly managed, the situation could ultimately require demolition funded by taxpayers.