‘Developer’ Byun Chang-heum’s debut… Should we expand housing in downtown Seoul

With the appointment of the Minister of Land, Infrastructure and Transport, Byeon Chang-heum, an expert on housing supply, it is noteworthy whether a special urban housing supply plan to resolve the unrest in house prices as he professed.

President Moon Jae-in appointed him as the second homeland minister of the current government.

The opposition party strongly objected, saying that the morality was flawed due to the accident at Guui Station and subsequent inappropriate remarks, but the ruling party forced the adoption of a personnel hearing report on candidate Byeon on that day, and President Moon did not delay the appointment.

It is interpreted as reflecting the strict awareness of the situation that the Ministry of Land, Infrastructure and Transport must hurry to reorganize the organization and enter a full force posture in order to calm the rising trend of housing prices that has spread beyond the metropolitan area to the provinces.

Immediately after the nomination, Minister Byeon said, “There is enough space to build a house in downtown Seoul, but we have not been able to use it properly”. “I will calm the house price anxiety by giving a signal that we can supply high-quality and cheap housing.” I have professed.

◇’Super large magic’ challenging in Seoul… “We offer better and cheaper houses”

What is currently attracting attention is the plan to secure housing in downtown Seoul.

Minister Byeon assured that there would be enough space to build more houses in Seoul, and suggested high-density development plans for low-rise residential areas such as station areas, semi-industrial areas, and villa villages.

In these areas, he boldly removed regulations from urban planning such as parking lots and sunlight, and came up with a plan to develop high density by increasing the floor area ratio.

Regarding the development of the Seoul station area, they suggested that the range of the station area could be expanded to a radius of 500 meters and the floor area ratio could be increased to 300%.

Currently, the station area in Seoul has a radius of 350m and a floor area ratio of 160% on average, and the project area can be expanded and buildings can be stacked higher.

In the case of semi-industrial areas, the cycle maintenance project is expected to begin in earnest. Circulation maintenance is a project of first creating anchor facilities, relocating factories in the region, and then developing the periphery.

The government has devised a plan to reduce the ratio of securing industrial sites from 50% to 40% for the development of semi-industrial areas in Seoul in the previous 5·6 measures, such as further reducing this ratio and raising the floor area ratio from the current 300%. It is mentioned.

Regarding the development of low-rise residential areas, a plan to promote small-scale reconstruction or actively introduce maintenance projects for urban regeneration has been mentioned.

For this, active participation of land owners in low-density development areas is essential.

Minister Byeon has argued that sufficient incentives should be given to them to be interested in development projects.

He also suggested, “Let’s reinterpret urban planning and architectural regulations from the perspective of residents’ lives.”

It is read as an expression of a strong will to abandon old regulations in accordance with the changed environment by examining the reasons for the existence of various regulations from the origin.

The premise is that the public, such as the Korea Land and Housing Corporation (LH), should participate in such unconventional incentives to secure publicity such as supplying rental housing or accepting donations.

Minister Byun believes that in order to promote these projects at a speedy pace, the requirements for securing land should also be relaxed.

To this end, he introduced special laws to facilitate land acceptance, or revised the existing’urban and residential environment improvement law’ to ease resident consent requirements for these areas.

Minister Byeon said in a call with Yonhap News, “It is important to re-grasp exactly what the people want and to gain trust that housing supply is sufficient.” I will do it if necessary.”

However, the pessimism that the supply measures alone will not be enough to quickly calm the rise in house prices that have shifted across the country is unpleasant. This is because even if it is promoted immediately, it will take several years or more to actually supply housing.

Along with this, it is the plan to supply public self-owned housing, such as housing with repurchase conditions.

The idea is to provide housing by the public at half the market price for middle-sized consumers who do not meet the qualification requirements to enter public lease and do not have money to buy a house.

It is expected that public private housing will be supplied in earnest in the 3rd new town or new residential area in the metropolitan area, rather than in the city center, where there is not much room for lower house prices.

◇ Byun Chang-heum’s developer instinct… Expansion of participation in public institutions such as LH and SH

Minister Byeon served as the president of Seoul Housing and Urban Corporation (SH) and LH, and played the role of a public developer.

Developer means a development company that secures land and conducts projects. He has expressed his conviction that development projects should not be entrusted to private domains, so public institutions should act as developers to coordinate complex interests while promoting projects at a speedy pace and distributing development profits appropriately.

Minister Byeon selected Segwon Jeong, Korea’s first real estate developer, as a person respected in the land and transport sector in the response data to the personnel hearing. He is a person who developed and sold hanok complexes such as Bukchon Hanok Village during the Japanese colonial period to the general public.

As such, Minister Byeon has regarded himself as a public developer, and SH and LH have also emphasized the function of a developer. His academic facilities and urban development projects he led during SH·LH include Sangam DMC, Magok District, and Yeosu Expo.

Accordingly, after the inauguration of Minister Byeon, the participation of public developers such as LH and SH is expected to increase in major housing supply plans by the Ministry of Land, Infrastructure and Transport.

In addition to public redevelopment and reconstruction, urban renewal New Deal and Seoul city housing supply plan, public institutions such as LH are expected to play a role in distributing development profits while strengthening the publicity of the project.

In particular, it is noteworthy whether the aspect of the urban renewal New Deal will change to a more aggressive appearance.

He, who has accumulated a Seoul-style urban regeneration model in SH, has argued that urban regeneration should not be merely a village renovation, but should actively engage in housing expansion in connection with maintenance projects.

He has developed various models that link urban regeneration projects with housing maintenance projects in SH. These are the maintenance business complementary type, low-rise residential maintenance type, station area maintenance type, shared property utilization type, and innovative space creation type.

◇ “Investment demand should be cut off sooner” regulation seems to remain the same

Minister Byun believes that in order to solve the current housing shortage, the consumer should reassure consumers by increasing the supply of housing by releasing regulations above all else, but the real estate regulation itself for multi-homed people should be maintained.

In particular, he suggested that although the theory of dance is emerging in relation to regional regulations such as areas subject to adjustment, he would rather actively operate it.

He stipulated that the designation of regulated areas was too slow and said, “Like the’early warning’ of the stock market, we plan to build a system that analyzes big data statistics in real estate to accurately identify where prices will rise and where they are rising, and apply appropriate regulations accordingly.” .

While the ruling party announced that it was necessary to actively introduce the Real Estate Transaction Analysis Institute, which is being promoted by the ruling party, it also suggested a plan to temporarily expand and operate the Real Estate Market Misconduct Countermeasure Team, which is in operation for a limited time, if the Analysis Institute fails to start by February next year.

It is also noteworthy what measures he will come up with against the foreigner housing transaction, which has recently become a booming local.

He also revealed a plan to investigate speculation cases in the local real estate market, saying, “Currently, the market is unstable due to a lot of collective investment activities in the provinces.”

Regarding the deregulation plan for private reconstruction and redevelopment, he said, “Relieving regulations solely for housing supply expansion without an appropriate development profit return device may have side effects.” Rather, public redevelopment and reconstruction as an alternative Insisted that it should be activated.

Regarding housing lending and tax regulations, Byun said that these regulations are needed to cut off the demand for investment in the real estate market and for a healthy economy.

However, he also stated that the loan regulation should be relaxed for end users, and the burden of ownership tax should be reduced for households with no other income among single-homed households.

◇ “To solve the jeonse crisis, we need to foster sound private construction leases”

Minister Byeon also suggested a plan to actively utilize construction rental rather than purchase rental in relation to private rental housing policy.

In particular, he insisted that publicly supported private leases should be promoted to secure rental housing that cannot be covered by public lease alone.

He said, “There is a need to promote construction-oriented rental housing that has public support that guarantees lower rent and rental period than the market price while receiving public support such as public support sensitive lease.”

At the same time, regarding the purchase lease, “Purchasing existing houses makes it difficult for homeless people to buy houses, and business owners take advantage of the market capitalization.”

Accordingly, Minister Byeon is expected to actively expand the supply of publicly supported private rental housing to secure rental housing.

In order to resolve the cheonsei crisis, Minister Byeon announced that he will carry out the existing 11/19 jeonse plan, which provides public jeonse, and further expand the supply of urban housing.

He believes that the signal that sufficient housing can be supplied in downtown Seoul will help resolve the cheonsei crisis.

Minister Byeon said that the changed systems, such as the 3 Lease Act, will be carried out without disruption, but detailed system supplementation is possible in order to minimize side effects during the implementation process.

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