Input 2021.01.05 17:29
“Review of floor area ratio easing, etc.…supplying enough housing to the station area”
Minister of Land, Infrastructure and Transport Byun Chang-heum held a policy meeting with major public-private organizations related to housing supply on the 5th and said, “Newly supplied houses should be supplied mainly to apartments that the people want.”
Minister Byeon said, “Some people are concerned about the supply of public self-owned housing and public rental housing, but they are focused on pre-sale apartments, and are mixed in consideration of the location conditions of public self-owned housing and public rental housing to secure consumers’ choice. “I need to supply it.”
Minister Byeon also said, “We will quickly supply housing by applying Fast Track through public-private cooperation.” “The central government and local governments can support institutional improvement and licensing procedures. Public institutions can reduce risk through consulting, securing land, and pre-investment. It can be done, and the private sector can provide creative design and construction capabilities,” he said.
Minister Byeon said, “We will supply enough housing in the city center by utilizing available land such as the station area. If we effectively utilize the low-density subway station area, semi-industrial areas, and low-rise residential areas, etc., We can supply housing.”
“Development profits should be properly distributed through social consensus and speculative demand should be prevented proactively,” he said. “With the participation of public developers, development profits will be appropriately distributed through social consensus to business owners, landlords, local communities, and tenants.” Said. He said, “We will actively block the inflow of speculative demand and market stimulation that may occur during the development process by providing a restraint device.”
According to the Ministry of Land, Infrastructure and Transport, attendees shared the basic direction of implementation of measures to expand the supply of housing in the city center with related agencies, listened to the difficulties of each agency related to housing supply, and discussed system improvements. In addition, as expansion of housing supply is important to the stabilization of the housing market, it was decided to operate a close cooperation system to become an exemplary model for public-private cooperation.
During the meeting, Minister Byun received recommendations from the Korea Housing Association and the Korea Housing Construction Association for improving HUG high-sales prices, improving city regulations, tax and financial support related to rental housing, and easing the building standards for small houses. I will actively consult with related ministries and local governments.”
Minister Byeon said, “We will smoothly finish existing tasks such as easing floor area ratio through the establishment of district unit plans for convenient transportation areas, easing the housing ratio in the minimum area for location regulation, and establishing an institutional basis for the increase in public reconstruction.” We will also look at additional regulatory improvements such as active designation.”
In this regard, the Ministry of Land, Infrastructure and Transport is promoting the improvement of the district unit planning system to reduce the floor area ratio of quasi-residential areas in the station area by up to 700% by the end of January through the revision of the Enforcement Decree of the National Land Planning Act.
Minister Byeon also said, “Some are aware that there are concerns about public-led private housing, rental housing, or housing-oriented supply. The central government and local governments support system improvement and licensing procedures, and public institutions provide consulting, site security, “We will focus on supplying pre-sale housing in the city center that the people want through public-private partnerships that provide risk sharing through pre-investment and creative design and construction capabilities for the private sector.”
Minister Byeon said, “In particular, landowners participating in public-private partnership projects will be able to secure profitability and promote the project quickly by reducing risk, simplifying licensing procedures, and receiving strong incentives.”
Meanwhile, the Korea Housing Association and the Korea Housing Construction Association, who attended the meeting, announced that the planned number of apartments for sale this year for member companies increased by about 23% from 281,000 units (expected performance) last year, for a total of 346,000 units.
Minister Byeon said, “This year’s private pre-sale is expected to be 362,000~391,000 units, depending on the prospecting agency, and the total pre-sale volume is expected to reach a maximum of 513,000 units, including public stocks such as LH and prior subscription. “We will actively support consulting and support systems with local governments so that such pre-sale can lead to actual pre-sale,” he said.