With the by-election of the mayor of Seoul on April 7th, there is a growing expectation that the reconstruction and redevelopment projects that have been frozen will be breathless. Preliminary candidates who challenge the next mayor of Seoul are pouring out real estate pledges such as maintenance projects to capture the vote. On the other hand, it is pointed out that premature investment should be avoided due to the fact that the term of office is only one year and the contents are not realistic.
According to the maintenance industry on the 8th, the ruling Democratic Party’s preliminary candidates focus on supplying public pre-sale housing and revitalizing conditional reconstruction, while the opposition parties such as the People’s Power Preliminary Candidates and Representative Ahn Cheol-soo of the National Assembly have proactively eased redevelopment and reconstruction regulations, such as raising the floor area ratio. Is emphasized.
Democratic Party lawmaker Sang-ho Woo is focusing on redeveloping underdeveloped areas for balanced development in Gangnam and North Korea. The emphasis is on’promoting redevelopment of underdeveloped areas with a sense of speed’ and’rebuilding to block demand for speculation’. In Gangnam as well, there is an opinion that reconstruction can be flexibly reviewed on the premise of recovering development profits and securing rental housing and small housing. Former Minister of SMEs and Startups Park Young-sun also emphasized that the reconstruction project should proceed, saying, “It seems that it is difficult to continue as an apartment built in the 1980s.” Basically, it is a position that the housing shortage in Seoul can be solved by constructing 300,000 units of public pre-sale housing within five years.
Opposition is much more proactive in the maintenance business. In order to shorten the time required for redevelopment and reconstruction licenses, former Congressman Na Gyeong-won, who is the most active member of the opinion, promised to provide a’one-stop deliberation service’ and abolish the pre-sale price ceiling system. Last month, he visited Eunma Apartment in Daechi-dong, Gangnam-gu, and announced that he would raise the floor area ratio and lift the 35-floor limit. Former Seoul Mayor Oh Se-hoon also announced that he would modify the floor number limit and floor area ratio standards so that a skyscraper complex could be built along the Han River. CEO Ahn Cheol-soo is also in a position to increase housing supply by easing reconstruction regulations.
As expectations for deregulation increase, the market for reconstruction is on the rise. According to Real Estate 114, the weekly increase in the sale price of reconstructed apartments in Seoul (as of the 29th of the previous month) was 0.28%, nearly twice the rate of increase from a week ago (0.15%). In particular, Songpa-gu rose to 0.77% from a week ago (0.27%). Complexes that have succeeded in establishing a cooperative and avoided two-year mandatory reconstruction are leading the market price increase. About 10 cooperatives have been established by last month, including Jugong 5·6·7 complex in Gaepo-dong, Gangnam-gu, Sinbanpo 2nd in Banpo-dong, Seocho-gu, Shindonga in Bangbae-dong, Samick Park Mansion in Gil-dong, Gangdong-gu, and Shindonga in Seobinggo-dong, Yongsan-gu.
Lee Dong-ju, head of the Industry Headquarters of the Korea Housing Association, said, “It takes too long for public-led methods such as deregulation of cities such as number of floors and land leasing methods to realize supply. It is an urgent need to breathe the supply in the near future.”
Reporter Lee Yoo-jung [email protected]
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