On the 6th, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced that they will receive a public offering for the’public-private joint semi-industrial zone circulation maintenance project’ from the 7th. The subject of the competition is for semi-industrial areas with a factory ratio of over 50% and over 3000m2. LH and SH Corporation participate to create a complex industrial/residential space, while using some of the newly built industrial facilities as alternative business facilities to promote the maintenance of semi-industrial areas.
However, even if the target site for the competition is developed, it is difficult for many houses to be built. According to the City Planning Ordinance of Seoul, the higher the proportion of factories in the project area, the more land should be secured for use as industrial facilities after development.
In principle, factory sites in semi-industrial areas are not allowed to build apartments and other apartments, and there are many restrictions, such as industrial facilities floor area ratio must be higher than the floor area ratio of apartment buildings.
In order to solve this problem, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government are in a position to increase business feasibility by lowering the ratio of the obligation to secure industrial land. In December of last year, the Seoul City Council passed an amendment to the Urban Planning Ordinance, which reduced the ratio of the duty to secure industrial land after development from 50% to 40% even if the proportion of factories exceeded 50% for development projects in semi-industrial areas where the public participates.
Therefore, in the future, it is possible to construct a housing complex equivalent to 60% of the area. In addition, when public facilities such as public leases are secured, support measures that provide benefits such as increasing the proportion of housing in the site and financing projects related to urban regeneration (50% in total, 1.8% per year, etc.) were also revealed.
In order to revitalize the supply of housing in semi-industrial areas, measures to strengthen floor area ratio incentives are also being reviewed. The Ministry of Land, Infrastructure and Transport plans to secure a total of 7,000 households by 2022 through development of semi-industrial areas.
However, it is pointed out that the housing provided through this project is mainly for rental, so it is far from the pre-sale housing that the actual consumer wants. Semi-industrial areas allow the supply of dormitories and rental housing, but limit the supply of apartments and apartments.
An official from the Ministry of Land, Transport and Maritime Affairs said, “We have not yet made a plan to put general pre-sale housing, not rental housing, in the area.”
By February 25th, applications for competition are received and the candidate site selection committee is held to select the final candidate site at the end of March.
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