“Rather than applying to do it, I tried it once to expand my options. Because the rental rate is too high… (instead of public redevelopment), I know that they are in separate contact with private construction companies. I will keep watching.” (Public redevelopment B candidate site residents)
The government has selected eight Seoul areas, which have been stagnant in redevelopment projects, as’candidate sites for public redevelopment pilot projects’, and residents’ reactions are mixed by candidate site. Various incentives, such as an increase in floor area ratio and exemption from applying the pre-sale price limit, are an advantage, but there are concerns that profitability will deteriorate due to the high rental ratio requirement.
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According to the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government on the 15th, 8 places in Seoul, including Heukseok 2 in Dongjak-gu, Yangpyeong 13-14, Yeongdeungpo-gu, Yongdu 1-6, Dongdaemun-gu, Shinseol 1-6, Bongcheon, Gwanak-gu, 2-12 Sinmun-ro, Jongno-gu, and 5 Gangbuk, Gangbuk-gu, were publicly redeveloped. It was selected as a candidate site for the first pilot project. The quantity that can be supplied from the selected candidate site is estimated to be about 4,700 households.Public redevelopment is supported by the public such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH) to normalize stagnant maintenance projects and speed up the project. It is a project to expand the supply of housing in the city center.
If residents agree to designate a public operator or expand rental supply, the public will give special cases such as easing urban regulations such as a 120% increase in floor area ratio, excluding the sale price ceiling, and simplifying the licensing procedure. Instead, 50% of the remainder, excluding the pre-sale for members, must be supplied as a lease (20% of the total public lease).
Accordingly, residents of some of the candidate sites selected this time are greatly welcomed. As the redevelopment project has suffered for a long time due to lack of business feasibility and conflict among residents, it is said that it is possible to speed up the project through public redevelopment. Residents of Candidate A said, “It is a situation where even residents who have not been interested in redevelopment because they want to see how well this neighborhood will be well done, they are in a hurry to see the development of their surroundings.” Expected.
However, residents of some candidate sites are concerned about the deterioration of business feasibility due to the high rental ratio. In particular, the delay in the passage of the relevant legislation to the National Assembly and related matters such as incentives and rental ratios have not been confirmed, which is a major factor in raising residents’ anxiety. A resident of Candidate B said, “I have agreed to the application once, but I will watch more of the situation.”
As for the actual implementation of the project, residents’ consent must be obtained again, so the government must still observe the trend. The government plans to hold a resident briefing session again and decide whether to finalize it by rolling out an agreement. It is expected to take about 6 months.
A government official said, “It is not possible to say that there is no conflict at all because these are places where there have been conflicts in the past. However, private redevelopment requires up to three-quarters of the residents’ consent, whereas public redevelopment is virtually half or three minutes long. It is expected that the business can be promoted because it only needs to obtain the consent of the 2nd.
Experts also expect that the candidate sites selected this time will be implemented somehow as they are pilot projects. Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, said, “As the current government needs to create a successful case of public redevelopment that was highlighted last year, this pilot project will be pushed unconditionally.”