Conflict with residents, donations for rent, and floor height restrictions Supply far beyond the mountain

<닻 올린 공공재개발 순항할까>

Shopping and new villa owners still oppose

The floor area ratio is raised to the legal upper limit of 120%,

Controversy over profitability due to increased public lease volume

Expert “must be supported by deregulation, etc.”

A banner welcoming the selection of public redevelopment is hanging in Heukseok District 2 in Heukseok-dong, Dongjak-gu, Seoul. /Plastic cycler

When the government selected eight candidates for public redevelopment, including Heukseok District 2 in Dongjak-gu, Seoul, the unions expressed their welcome. This is because the business is expected to speed up this time, as it has been drifting for more than 10 years due to lack of business feasibility and conflict among residents. However, the market and experts advise that the supply expansion is good, but there are still not many mountains to overcome.

First of all, it is assessed that the payment of rental housing donations and the conflict between residents are still obstacles. In order for the project to proceed, more than two-thirds of the owners of land, etc. must have consent. Many of the land owners, such as shopping centers and new villas in the places designated as candidates, are already opposed. In addition, as a result of the selection of the candidate site, it is revealed that public redevelopment is inevitably conducted mainly in small complexes. Professor Seo Jin-hyung of Kyungin Women’s University (Chairman of the Korea Real Estate Association) said, “If you look at the business sites that have been released this time, they are mostly small complexes with 200 to 300 households or redevelopment areas with a small site size.” It is a difficult place to be. One expert said, “Public redevelopment cannot replace the entire maintenance project,” and said, “We need to ensure that private projects can also be carried out through deregulation.”

◇ Redevelopment Association, “The Way to Expand Business Feasibility Opened” = The government and the Seoul Metropolitan Government as candidates for the first pilot project for public redevelopment on the 15th, 2 Heukseok, Dongjak-gu, 13/14 Yangpyeong, Yeongdeungpo-gu, 1-6 Yongdu, Dongdaemun-gu, and 1 newly established, 13 Bongcheon, Gwanak-gu, Sinmun-ro, Jongno-gu Eight locations were selected, including 2-12 and Gangbuk District 5, Gangbuk-gu. A total of 70 applicants applied for the contest held last year, and the final eight were selected by reviewing 12 existing maintenance areas that were easy to review and review because a maintenance plan has already been prepared, excluding 10 such as urban regeneration areas.

All eight of these are existing maintenance zones located in the station area, but projects have been stagnated for more than 10 years due to lack of business feasibility and conflict among residents. In the case of Yangpyeong 13 district, Yeongdeungpo-gu, the establishment of the association and approval of the project was completed in 2010. However, the project was stopped due to concerns about unsold sales, and there was a conflict between residents and the situation was sluggish. Gangbuk-gu Gangbuk District 5, too, is in a state of drifting for a long time, as the owners of shopping malls oppose redevelopment and the resident consent rate does not exceed 50%.

The government plans to resolve obstacles to project promotion and provide quality housing by participating in the participation of Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH). For this, it was decided to allow floor area ratio up to 120% of the legal upper limit and exclude the application of the pre-sale price limit. In addition, 50% of the total project cost and relocation expenses were financed at low interest rates, and various licensing procedures were also decided to be simplified. However, in proportion to the increased floor area ratio, 20-50% of public rental housing should be erected and donated. This is less severe than the existing redevelopment, where at least 50% of the increased floor area ratio must be donated to public rental. In addition, in order to prevent the inflow of speculative forces, the entire maintenance area was designated as a land transaction permission area.

◇ Opposition to owners still… Still,’Mountain Beyond the Mountain’ = Many of the members of these regions are welcoming. It is expected that it will be possible to improve areas that are underdeveloped such as old residential areas. However, in some regions, the conflict has not been resolved. In Gangbuk District 5, old houses and shopping centers are mixed, and there is a strong opposition from shopping owners. They argue that the current rental income is more desperate than the future value that can be obtained through development. A mall owner said, “The overall agreement rate was only 30-40%, as mall owners opposed it,” and said, “It is difficult to approve development unless appropriate compensation is provided. The owners of the new villas in the area also disagree.

Compared to public reconstruction, there is not much opposition to the acceptance of public rental donations, but this is also evaluated as one of the obstacles. This is due to concerns that an increase in rental housing volume could reduce business feasibility and reduce future value. A union official said, “There is no reason to oppose it in terms of business feasibility as the provision for accepting public rental donations is entered in exchange for raising the floor area ratio. However, if the amount of public rental is applied up to 50% of the increased floor area ratio, the dissenting opinion is I think I can grow bigger,” he said.

Urban regulation is also pointed out as a problem. Even if the floor area ratio increase is applied to Heukseok District 2, the floor area ratio benefit will be halved due to the altitude restrictions. Regarding this, the president of Heukseok District 2 said, “This area was originally notified as 141m with 35 stories. If the floor area ratio is increased, the floor height restrictions must be eased,” he said. Experts believe that there are various obstacles as detailed conditions related to public redevelopment have not been confirmed. Professor Seo pointed out that “the economic compensation plan for land owners is a potential conflict factor.” “The project will speed up only when a plan to dramatically increase the resident consent rate, which has been sluggish, will be supported.” Dae-Jung Kwon, a professor at the Department of Real Estate at Myongji University, also evaluated, “The business feasibility has improved due to the expansion of the floor area ratio, but there is still a long way to go, such as the rate of donations and compensation for land owners. / Reporter Kang Dong-hyo and Kwon Hyuk-jun [email protected]

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