Concerns about property rights and chicken jang apartments of “no public development” reconstruction complexes

“It is promoted by private reconstruction.” A banner like this was recently hung at Seongsan Municipal Apartment in Mapo-gu (completed in 1986), one of the representative reconstruction complexes in Gangbuk, Seoul. The complex of 3710 households passed the safety examination process for the reconstruction project last year and is currently pursuing designation of a maintenance area. It is one of the target sites for the’public direct implementation reconstruction project’ that the government announced in the last 2-4 countermeasures, and it means that it will refrain from public development proposals and rebuild the private sector.

Mr. Choi Mo, 40, the owner of the complex, said, “To make it clear that the residents are opposed to the reconstruction, we put up a banner saying “Private reconstruction promotion”.” We took action in a hurry,” he said.

The Ministry of Land, Transport and Maritime Affairs announced that it will recruit complexes to receive consulting on public direct implementation maintenance projects from the 23rd as a follow-up measure for the 2nd and 4th measures, but the declarations of opposition from major reconstruction complexes have been lined up before taking the first step of the project. Although the government has offered benefits such as exemption from redemption of excess profit (re-return) and exemption from two-year real-time residence for members of public reconstruction complexes, the market’s response is cold.

Haanjugong Complex 3 (2220 households, completed in 1989) in Haan-dong, Gwangmyeong-si, Gyeonggi-do, also recently created a sticker with the phrase’Private reconstruction in progress’ and pasted it on real estate agencies near the complex. An official from the reconstruction preparatory committee of this complex said, “I tried to make a banner with the phrase’reconstruction in progress’, and then expressed it as’private reconstruction’ to emphasize’private’. The most important thing in capitalism is the exercise of property rights. “Does it make sense to hand it over to the public disposition?”

At Eunma Apt. in Gangnam-gu, Seoul, there are always banners stating that the government opposes the’public reconstruction’ announced by the August 4th measure last year. In the case of Jamsil Jugong Complex 5, which, like Eunma Apt., has voiced opposition from the time of public reconstruction, after the announcement of the 2nd and 4th measures, the president of the union sent a message to the members saying, “This is a more unfavorable measure than the 8th and 4th measures.” Also did.

Complexes that had been positively reviewing’public direct implementation reconstruction’ have also recently turned a sharp turn. In the case of Junggok apartments in Gwangjin-gu, Seoul, the Reconstruction Promotion Committee recently surveyed 270 owners, and as a result, all 136 respondents opposed the public direct implementation method of reconstruction. An official from the Promotion Committee said, “Immediately after the announcement of the second and fourth measures, the exemption from reconstruction excess profits was attractively accepted, but in the process of detailed review, the burden on the part that had to hand over ownership to public institutions seemed to be high.”

Reconstruction complexes are concerned that public-led maintenance projects infringe on private property. In the case of public reconstruction, ownership is held by the private sector and the public participates as a manager, but in the case of a public direct reconstruction project, the public accepts the land and takes ownership of the land and then directly implements the reconstruction project. The government emphasizes, “Based on the exemption from urban regulations and reconstruction charges, we guarantee a 10 to 30 percentage point higher rate of return than private maintenance projects”, but the market’s response is negative.

Lee Chang-moo, a professor at Hanyang University’s Department of Urban Engineering, pointed out, “In the case of management and disposition, there is room for consensus to be made even if we fight, but the resistance of the public acceptance method has to weaken from the moment the ownership is handed over.”

It is also a huge burden that apartment transactions will be cut off if the government proceeds as directed. After the government announced the supply plan, it announced that if you bought a house in a place where the project will be promoted, it will pay for cash without first giving you the right to supply. In the district housing clusters in Gangbuk, Seoul, which is considered a target for development of the station area, the buying trend has been cut off after the announcement of the measures, and even a’deal cliff’ is appearing.

There is also a backlash that it will become a’chicken coop apartment’ as the government promotes high-density development to increase supply and increase the profitability of maintenance projects. An example of high-density development is the youth housing in the station area that the government is promoting.

In the case of youth housing near the Samgak area in Yongsan-gu, which recently started moving in, two 37-story buildings with 1086 households (323 households for public rental and 763 households for private rental) were built on a site area of ​​8671m2. The floor area ratio reaches 962%. In the case of a sidebangchon of Seoul Station, which the government has announced that it will build public housing with full acceptance, 2410 residential and commercial apartments with up to 40 floors including public housing and private sales will be built on a 47,000m2 site.

In the case of the Asia Apartment, which is built with a maximum of 32 stories in the former Armed Forces Welfare Group in Dongbu Ichon-dong, which Yongsan-gu approved the housing construction project plan on the 22nd, the land area is larger than that of Seoul Station, but the number of households Is only 969 households. This is the result of applying a floor area ratio of 336%, which is higher than the average density of maintenance projects in Seoul over the past five years (floor area ratio 250~260%).

Among the private apartment complexes, Banpo Raemian Firstage (2444 households) in Seocho-gu, which is similar to the number of households supplied by Seoul Station, has a land area of ​​133,000m2. It has a floor area ratio of 269% with the largest 32 stories.

Heo Yun-gyeong, a research fellow at the Korea Institute of Construction Industry, said, “From the standpoint of a private reconstruction complex, the comfort level is lowered so that it cannot be a benefit.” “First of all, high-density development should be determined in consideration of the regional context and capacity of urban infrastructure. I do” he emphasized.

Reporters Eunhwa Han and Won Kim [email protected]