LH·SH reconstruction and redevelopment introduction
Block speculation such as purchasers of development sites
Expansion of subscription for homeless people in their 30s and 40s
The government promotes reconstruction and redevelopment projects directly implemented by the public to dramatically increase the supply of housing in large cities such as Seoul. For station areas, semi-industrial areas, and low-rise residential areas, the government directly designates districts, and public institutions lead the projects.
Through this, a goal was set to supply 836,000 homes nationwide, including 320,000 homes in Seoul alone, by 2025. On the 4th, the government announced at the government building in Seoul,’Public-led 3080+, a plan to radically expand the supply of housing in metropolitan areas’. This is the current government’s 25th real estate measure. It is the current government’s largest supply measure. The main point is that the development method directly implemented by public institutions such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH) was introduced.
A type of directly implemented by public institutions has been newly established for maintenance projects such as redevelopment and reconstruction, and the city center public housing complex project is promoted with a sense of speed by the public directly taking over the project by using the Special Public Housing Act for the development of station area, semi-industrial areas and low-rise housing ‘Is promoted.
These projects are given floor area ratio incentives that exceed the legal upper limit and are designated as special construction areas, thereby easing various urban regulations such as the right to sunlight and height restrictions. The floor area ratio increases to 700% in the Seoul station area and 500% in semi-industrial areas. Existing residents are guaranteed a 10-30% higher rate of return than their own projects. The development profits exceeding the guaranteed rate of return are redeemed and used to expand living social overhead capital (SOC), support tenants, and create public rental housing for the socially underprivileged.
With the consent of more than two-thirds of the residents, the project will be promoted, and the project will proceed quickly through fast track operation such as an integrated deliberation by local governments. In reconstruction projects directly implemented by the public, the redevelopment excess profit return system or the two-year real residency obligation for members does not apply.
Small-scale redevelopment projects are newly established to activate small-scale maintenance projects, and small-scale housing maintenance management areas are created in low-rise residential areas. In order to expand the supply of housing through urban regeneration, the residential regeneration innovation zone system is introduced. This is a project to create a base for housing, welfare, and convenience in residential areas where public enterprises such as LH have declined, and it is possible to accept land on a limited basis.
A new deal specializing in residential regeneration was also introduced, and projects in connection with redevelopment and reconstruction, small-scale maintenance, and urban public housing complex projects within and outside the urban regeneration area will be conducted.
A plan to block speculative demand was also prepared. If real estate such as land in the business area is acquired after this day, the right to supply is not given priority. Priority supply rights are operated on the principle of supplying one house to one household, and resale of priority supply rights is prohibited until the transfer of ownership is registered.
The area for which the project is to be promoted is designated as a land transaction permission area, and real estate purchases are restricted unless it is for actual residence or actual management purposes. 70-80% of the housing supply secured through the project is supplied by public pre-sale, and the remaining 20-30% is supplied by public self-owned housing and public lease, such as with conditions for redemption, land rental, and equity accumulation. The purpose of this is to increase the satisfaction of existing residents and widen the options for housing consumers by using donation-paying houses through floor area ratio incentives, not mainly for public rental, but as various types of houses.
Through this measure, the government will supply 616,000 homes to the metropolitan area, including 320,000 homes in Seoul, by 2025, and secure 220,000 homes in local metropolitan areas. Of the 836,000 households, about 573,000 households are secured through new projects in the city center, and 263,000 households are secured through designation of new public housing sites.
The subscription system will also be reorganized to guarantee the opportunity for the middle class to subscribe for public pre-sale houses that are newly established through the housing supply method. The general supply of public pre-sale currently accounts for only 15% of the total volume, but it will be increased to 50% and a lottery system (30%) will be introduced for general supply to expand subscription opportunities.
Minister of Land, Infrastructure and Transport Byun Chang-heum said, “By improving the subscription system, we will greatly expand opportunities for homeless families in their 30s to 40s as well as newlyweds and first-timers.”
/yunhap news
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