Setting the range of increase in the number of public reconstruction households… Establishment of development profit return ratio
Popular complexes such as Eunma,’Chill’… “We need to ease the payment of contributions, re-recruitment, and amortization”
[서울=뉴스핌] Reporter Seong-soo Kim = The city of Seoul has started to’repair’ the system to achieve public reconstruction results. In order for public reconstruction to be successfully settled in the market, a plan for institutional improvement and concreteization was sought.
However, the industry pointed out that in order to revitalize public reconstruction, it is necessary to ease any one of the’three kinds of regulation’ of the collection of donations, the redemption of excess profits for reconstruction, and the sale price ceiling system.
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| [서울=뉴스핌] Reporter Yoon Chang-bin = An apartment complex in downtown Seoul. 2020.09.11 [email protected] |
◆ Setting the range of increase in the number of public reconstruction households… Establishment of development profit return ratio
According to the Seoul Metropolitan Government and the real estate industry on the 4th, the city announced on the 30th of last month’Reconstruction project research service to strengthen publicity and stabilize the real estate market’. This service announcement is to minimize the situation in which house prices rise due to public reconstruction, recover development profits, and find ways to expand the supply of public housing.
The system improvement promoted by the Seoul city is largely divided into two. ▲Revision of the Public Reconstruction Ordinance (Seoul Metropolitan City and Residential Environment Improvement Ordinance) and preparation of system improvement measures such as system improvement ▲Restructuring market commitments and government housing policies, etc.
First of all, the city plans to set the range of the number of households to increase with public reconstruction. For example, the range of the number of households increased by public reconstruction is set to 1.6 to 2.4 times the previous number of households.
In addition, the range of the return ratio of development profits of public reconstruction is specified. Considering the scale of housing growth and the financial conditions of the maintenance area. Currently, the ordinance is to set the development profit return ratio within the range of 50 to 70% of the increasing floor area ratio. Calculate what is the appropriate ratio of the return of development profits with this service.
Various methods such as public housing and living social overhead capital (SOC) can be reviewed as a means of returning development profits. In this case, we derive what the ratio of rent and sale is appropriate according to the land price (land price), region, and size of public housing (rental and pre-sale housing).
The specific supply method (including supply ratio) of public housing (rental and pre-sale housing) is also determined. The criteria for deliberation by subcommittees of the Urban Planning Committee (if necessary) for designation and change of maintenance zones and decision and change of maintenance plans are also subject to review.
An integrated deliberation standard is also prepared for review and deliberation by integrating matters related to project implementation authorization. This includes architectural deliberation, landscape deliberation, educational environment evaluation, urban/gun management plan, traffic impact assessment, disaster impact assessment, and environmental impact assessment. In addition, matters entrusted to local governments in the Enforcement Decree of the Urban and Residential Environment Improvement Act will be reviewed.
It also prepares implementation plans such as government housing policies related to public reconstruction. It is to investigate and analyze the existing system and higher-level related plans for the increase of the use area, the reduction of the number of floors, and the method and ratio of the return of development profits due to public reconstruction. It also examines the current status of public reconstruction target sites, housing supply, development profit recovery, business feasibility analysis, and application of various reconstruction charges.
It also proposes ways to improve the system, such as related laws and regulations, to increase the number of complexes participating in public reconstruction. Measures are also established to minimize the impact of public reconstruction on the surrounding real estate market.
◆ Popular complexes such as Eunma,’Cale’… “We need to ease the payment of contributions, re-recruitment, and amortization”
The city announced this service in about two weeks after the Ministry of Land, Transport and Maritime Affairs announced the results of analysis of only 7 sites that applied for preliminary consulting on public reconstruction on the 15th of last month.
There are seven complexes that participated in the consulting: ▲ Sinbanpo 19th Apartment in Jamwon-dong, Seocho-gu ▲ Mangwoo 1 District in Mangwoo-dong, Jungnang-gu ▲ Junggok Apartment in Junggok-dong, Gwangjin-gu ▲ Singil 13-dong, Singil-dong, Yeongdeungpo-gu ▲ Gunyeong Apartment in Sinrim-dong, Gwanak-gu ▲ Gangbyeon-Gangseo Apartment in Ichon-dong, Yongsan-gu.
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| [서울=뉴스핌] Reporter Sungsoo Kim = 2021.02.03 [email protected] |
The results of the pre-consulting are used as basic judgment data for the cooperative to decide to participate in public reconstruction through in-depth consulting. If the union does not accept the results of the pre-consulting, public reconstruction will be destroyed.
However, public reconstruction has not been well received in the market. This is because of concerns that even if the public reconstruction benefits from an increase in floor area ratio, the profitability will be lower than that of general reconstruction due to various regulations including donations.
For example, with public reconstruction, as the amount of donations (rental apartments) increases, the land share of existing members decreases, reducing the total union profit. In addition, if the total number of households increases by the amount of rental apartments, the total construction cost increases and the construction period is extended.
The residential environment is also worse than before. In order to double the number of apartment households on the same area, the landscaping area must be reduced accordingly. As the number of residents increases, more underground parking lots and community facilities should be built. For existing members, the quality of housing declines due to the increased population density.
If the landscaping area and building-to-land ratio (ratio of the building area to the site area) are maintained as the existing for the comfort of the dwelling, the number of floors in the apartment must be increased. In this case, there is a problem that the construction cost increases and the construction period is extended.
In order to cover the increased construction cost, the general sale price must be high, but even that is not easy. This is because general pre-sale prices cannot be received high due to the ceiling on the pre-sale price of private residential land (partition system). In addition, if the number of rental apartments is large, it is difficult to set a high pre-sale price because the high-end image cannot be applied to the complex.
In addition, it is a burden considering that up to 50% of the reconstruction profits must be paid in tax with the reconstruction excess profit return system (return). This is why there are no incentives to participate in the’public reconstruction’, the better the business location is.
Accordingly, it was decided not to receive preliminary consulting for public reconstruction for Eunma Apartment in Daechi-dong, Gangnam-gu, Seoul. This is because the loss of 1.1 billion won per member is incurred if the reconstruction of Eunma Apartment is carried out in the public reconstruction method.
It is said that the Shinbanpo 19th car, the only Gangnam area to apply for preliminary consulting on public reconstruction, is also less likely to participate in public reconstruction. Members are dissatisfied with the increase in rental housing ratio.
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| [서울=뉴스핌] Reporter Sungsoo Kim = 2021.02.03 [email protected] |
The contribution rate for public reconstruction is up to 70%. For example, if a complex with an original floor area ratio of 250% and 1,000 units sold by members and sold for general sales participates in public reconstruction, a floor area ratio of 500% is applied and the number of households increases by 100. However, of these, up to 700 households must be donated. Half are rental housing.
Shinbanpo 19th has a floor area ratio of 400% suggested in public reconstruction, a 130% increase from the previous one. The complex is not large with 242 households, but compared to the case where the public reconstruction was carried out by members alone, the number of rental housing increased to 30 to 40 households.
Kim Seong-jin, head of the 19th Shinbanpo Reconstruction Association, said, “I participated in pre-consulting for public reconstruction to review feasibility, but negative public opinion is high due to the high ratio of rental housing or re-return.” Higher.”
Experts pointed out that in order to increase the use of public reconstruction, the government needs to ease any one of the’three kinds of regulation’ of donations, re-invitation, and division system.
Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, said, “It is advantageous to raise the sale price for popular businesses such as Yeouido, Banpo, and Gangnam by promoting the image of’high-end’ of apartments. In order to revitalize the reconstruction, it is necessary to reflect the requirements of members in the system.”