This article contributes to research on urban dynamics and residential spatial change. This research presents a case study of an Indonesian city located in South Sulawesi Province, Makassar, which was originally formed from an agglomeration of ethnic-based villages. Along with the growth and development of the city, these ethnic-based settlements were overhauled and replaced by profession-based housing complexes, subsidized housing complexes, and others. This research is a descriptive qualitative sociological research both in the type of data and analysis. The research approach is historical sociology with synchronic and diachronic thinking methods. This article explores the process of ethnic-based settlement reshuffling that begins with the emergence of a series of government policies in development and the pressure of global capitalism from economic actors of poverty that intervene in the process and direction of urban development. The financial impact and the social, economic and cultural implications are also examined. This phenomenon shows that urban modernization is a necessity for cities in the future and will certainly have far-reaching consequences for city residents.
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