[이코노믹리뷰=우주성 기자] Eight candidate sites for Seoul’s first public redevelopment pilot project were confirmed on the 15th. It is an evaluation that more workplaces have been selected than expected. Since all of the candidates for selection are in the station area, there are also analysis on whether it will serve as a paving stone for the high-density development of the station area in the future. Experts say that the public redevelopment project is on track, but detailed standards and supplementary measures are needed to be convinced by the residents of the project site.
On the 15th, the Ministry of Land, Infrastructure and Transport (Ministry of Land) and Seoul selected eight maintenance sites in Seoul, including Heukseok District 2, as candidate sites for the’public redevelopment’ pilot project. The candidates selected this time are Heukseok District 2 (1310 units), Yangpyeong 13 District (618 units), Yongdu 1-6 District (919 units), Bongcheon 13 District (357 units), New 1 District (279 units), Yangpyeong 14 District (358 households), Sinmun-ro District 2-12 (242 households), and Gangbuk District 5 (680 households), for a total of 4700 households. In March, the government plans to select additional project sites from the areas where the existing maintenance zone was removed and 47 new applications.
Public redevelopment has just risen… the lid opens’All Station Area’
Public redevelopment is a redevelopment project led by the public such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Corporation (SH). Significant incentives are given to businesses that promote public redevelopment in order to quickly improve the residential environment and housing supply. In addition to the floor area ratio, which reaches a maximum of 120% of the current upper limit, some regulations such as the pre-sale price ceiling (partial system) are also not applied. It also provides benefits such as simplification of various licenses and support for business loans. However, housing, etc., excluding the pre-sale of members, should be donated at least 50% in the form of public lease in the future.
In the case of the candidate site selected this time, among the existing maintenance areas, areas evaluated as station area were selected. In the case of the station area, it is analyzed that it is more advantageous in profitability or business promotion, and it is in line with the supply policy such as high-density development in the station area promoted by the Ministry of Land, Infrastructure and Transport.
The Ministry of Land, Infrastructure and Transport said, “In the case of this selection, it was targeted to places where the project was stagnated for an average of 10 years or more after designation of a maintenance zone due to lack of business feasibility or conflict with residents. In the case of resolving obstacles to project promotion through public redevelopment among the station areas, we selected places with great potential to supply quality housing that end users want.”
Seo Jin-hyung, chairman of the Korean Real Estate Association (Professor of Kyungin Women’s University) analyzed, “As the Ministry of Land, Infrastructure and Transport has raised the banner of high-density development in the station area, it seems that candidate sites have been selected around station areas with high real demand according to the policy direction.”
Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, diagnosed, “As a successful precedent is necessary, in the case of this project site selection, it is highly likely that the places where the project is as easy as possible were selected first.”
Public redevelopment with success in the box office…“The scale of supply is limited”
Experts predict that this public redevelopment selection will also promote participation of other maintenance sites in the future.
“In the case of public redevelopment, various incentives, such as various incentives, are abundant. There is a possibility that some of the large-scale reorganization promotion districts in Gangbuk and outskirts of Seoul, where the project is still in progress, will participate in the project.” “The fact that resale is relatively free and there is no need to live in due to the non-deployment system is expected to increase the distribution advantage of the new construction.”
On the other hand, it is pointed out that the limitations in supply scale are also clear. Chairman Seo said, “Except for Heukseok District 2, the supply scale is not large. It must be at least a certain scale to generate synergy in development or business, but there are many small complexes, so it is less effective and there is a possibility of difficult development.”
Ham Rapjang also said, “In the case of pilot complexes, most of the small redevelopment projects under 500 households are. We believe that the effect of mass supply, such as the New Town project in the past, will be limited.”
Successful public redevelopment, detailed standards and coordination are key
Experts point out that first of all, detailed details such as a maintenance plan, expected contributions, proportionality and the size of donations must be prepared for residents to understand.
Chairman Seo said, “It is necessary to promote the project by setting a uniform standard for public contribution. For example, we need more detailed guidance on the specific contribution to revenue.” Chairman Seo added, “We need to consider measures to prevent difficult development by lowering the building-to-land ratio and securing it as a park or road site.”
“There is a possibility that residents may have disagreements regarding community facilities and community facilities such as social mix in the future. It is also necessary to adjust the difference between the private general sales and the public general sales.”
Researcher Lee said, “The challenge that frequently occurs in the promotion of existing redevelopment projects is the compensation problem. There seems to be insufficient measures to solve the public compensation problem. “This is a part that must be solved for quick business promotion.”
“We also need to prepare for possible price increase”
Meanwhile, experts believe that price uncertainty may appear in some regions designated as the pilot project site.
Lab manager Ham diagnosed, “As the maintenance business resumes operation, anxiety may arise from price rise due to related favorable events.” Researcher Eun-Hyung Lee replied, “In case of price increase, it is necessary to apply anti-speculation measures for existing redevelopment projects, and to add public profit return if necessary.”
In fact, the government plans to promote the designation of a’land transaction permission zone’ for the selected candidate sites. Chairman Seo said, “Except for Heukseok-dong, it seems that speculation concerns are not very high. Nevertheless, it will have a clear effect on blocking speculative forces if it is grouped into a land transaction permission zone.” Chairman Seo added, “However, there is a possibility that it may affect the exercise of property rights by existing residents, and it may act as an additional business delay factor.”