[세종풍향계] “The real estate initiative will be taken away”… Ministry of Land, Infrastructure and Transport,’Tactile’ on Seoul Rehabilitation News

Input 2021.01.23 07:00

Mayor of Seoul has strong powers to determine, such as floor area ratio, station area, and number of apartment floors

The Ministry of Land, Infrastructure and Transport in Sejong City is unable to take its eyes off the by-election of the mayor of Seoul. In order to implement the housing supply plan made by the Ministry of Land, Infrastructure and Transport, led by Minister Byeon Chang-heum, cooperation with the head of the metropolitan local government is essential. If the opposition party becomes the mayor of Seoul, it can be another obstacle in the implementation stage of the government plan. There are also concerns that the government policy stance and other policies to promote private reconstruction can be pursued in earnest.

According to the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government on the 22nd, metropolitan local governments, such as Seoul, have the authority to change the use area and district directly connected to the floor area ratio, set the range of the station area, and decide on the limit of the number of apartment floors. The speed of approval and approval of major development projects can also be adjusted. This is because the market’s authority is also to establish a district unit plan for reconstruction, which is directly connected to the speed of the reconstruction project, and to diagnose reconstruction safety. For this reason, recently, officials from the Ministry of Land, Infrastructure and Transport have often raised topics such as characteristics, policies, and elections by candidates for the mayor of Seoul.

Seoul’s discretion is strong. The big stem of real estate policy is achieved through laws and enforcement decrees written by the Ministry of Strategy and Finance (tax), the Financial Services Commission (loans), and the Ministry of Land, Infrastructure and Transport (regulated areas, etc.), but the details of the policy are determined by local government ordinances and guidelines. Through the Urban Planning Ordinance, major regulations such as floor area ratio restrictions are usually reduced by 50% points from the upper limit stipulated by the general law. This is the reason why projects that are impossible due to the ordinances of the Seoul Metropolitan Government, although possible under the law.

For this reason, officials from Seoul are often present in the announcement of major real estate measures. Also, in the major press releases released by the Ministry of Land, Infrastructure and Transport, the names of the employees of the city of Seoul along with those of the Ministry of Land, The list of candidates for public redevelopment announced by the government on the 14th was also decided and released by the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government. Major measures to prevent speculation in the region will soon be announced through the Seoul Metropolitan Government. The public-private joint semi-industrial zone rotational maintenance project, which started on the 7th, is also a joint product of the Ministry of Land, Infrastructure and Transport. In particular, measures to increase housing supply areas in semi-industrial areas to 60% were made possible by revising the city’s urban planning ordinance.

The real estate policy-related authority held by the mayor of Seoul is a strong non-territory for the Ministry of Land, Infrastructure and Transport. In particular, the Mayor of Seoul’s vigilance has grown more than ever in the supply plan of Minister Byeon, who is planning to increase business feasibility by changing the city’s ordinances for the development of publicly-led station areas and semi-industrial areas.

In fact, the Seocho-gu Office, led by Mayor Cho Eun-hee from the opposition party, used the characteristics of the pre-sale price limit system in Seocho-gu’s Won Bailey pre-sale price review, which was unveiled on the 9th, to reveal the blind spots of the pre-sale price limit system created by the central government. This is because, through the evaluation of the installment system, a much higher sales price (56.68 million won per 3.3㎡) than the result of the HUG’s high sales price evaluation (48.91 million won per 3.3㎡). This was possible because 6,66,000 won per 3.3㎡ was added to the maximum by reflecting the discretion of local governments among the standards for calculating the pre-sale price.

The current Seoul city, which is operated by a proxy system that is not from the opposition party, also embarrassed the government at the time of the announcement of the 8.4 measures last year containing the supply plan for the metropolitan area. At a briefing held by Seoul City in the afternoon after Kim Hyun-mi, then Minister of Land, Infrastructure and Transport, Deputy Prime Minister Hong Nam-gi and Minister of Strategy and Finance announced in the afternoon, the head of the Seoul Housing and Architecture Headquarters Kim Seong-bo said, “There is a practical question (question) on whether the private sector can participate in public reconstruction.” This is because he said, “In the first place, the city did not agree with it very much.”

The new mayor of Seoul will be in office until next June. Although it is only a year or so, it almost overlaps with the remaining terms of President Moon Jae-in. The urban supply plan, which Minister Byeon announced that he would soon announce, can reach its true trajectory only after the Seoul Mayor’s election in April through the legislative process that corrects the laws and enforcement ordinances. If the opposition mayor is born, the policy made by Minister Byeon could not be enforced, and the term of office could be ended as a’plant minister’.

It is also possible that the Ministry of Land, Infrastructure and Transport is being dragged by the policies of the mayor of Seoul. The current government has a negative stance on private reconstruction and redevelopment, but major opposition candidates are eager to reactivate reconstruction and intervention. The method of redesigning the canceled maintenance zone by changing the urban plan of Seoul, which has set the limit on the 35th floor of the apartment, is discussed. There is also a way to speed up the district unit plan in Yeouido and Apgujeong. In this case, the current government’s policy of’public redevelopment’ may be hoped for, but it could be an opportunity to face headwinds in the local elections in 2023 if you disagree. In many ways, it could be a year of nightmares for Minister Byeon.