Input 2021.02.04 10:00 | Revision 2021.02.04 10:59
Seoul station area 78,000, supply 330,000 low-rise residential areas
15~20 new residential areas designated near Seoul, metropolitan cities, etc.
On the 4th, the government announced a real estate plan to supply 830,000 additional homes nationwide, including 320,000 units in Seoul by 2025. This is the 25th announcement of real estate measures after the Moon Jae-in government was launched.
The main goal is to quickly promote the projects of the existing redevelopment and reconstruction areas with public initiative, and to develop station areas, semi-industrial areas, and low-rise residential areas. Projects for existing maintenance zones led by the public also included plans to increase the floor area ratio and reduce donations to increase business feasibility.
In the Seoul area, supply plans such as 93,000 units for public direct-implemented maintenance projects, 78,000 units for station area development, 33,000 units for low-rise residential development, and 62,000 units for small-scale maintenance projects were proposed.
Looking at details, it plans to supply a total of 300,000 units (117,000 units in Seoul) combined with the’city center public housing complex project’ that develops station areas, semi-industrial areas, and low-rise residential areas and small-scale redevelopment.
To this end, the urban public housing complex project will be introduced for a period of three years. Land owners, private companies, local governments, etc. discover excellent urban locations underdeveloped and propose a complex housing and base to Korea Land and Housing Corporation (LH) and Seoul Urban Housing Corporation (SH). It is designated as this planned district and development projects are promoted quickly. If two-thirds of the land owners agree within one year of the designated district, the project is confirmed, and the construction is initiated through swift approval and approval of the local government.
It is planning to supply 136,000 units (93,000 units in Seoul) to the existing redevelopment and reconstruction maintenance areas through the’Public Direct Implementation Maintenance Project’, which the public directly implements.
Public direct implementation maintenance projects are a method in which LH, SH, etc. directly implement redevelopment and reconstruction after the residents agree, and lead the project and sales plan to promptly promote it. The plan is to shorten the project period, which previously took 13 years or more, to within 5 years by omitting the union general meeting and the procedure for approval of management disposition and applying integrated deliberation, etc., if the implementation of the maintenance project of a public company begins at the request of a majority of members.
In addition, in order to improve business feasibility, it plans to give incentives, such as an increase in the first stage or a 120% increase in the legal floor area ratio, the obligation to reside for two years as a member of the reconstruction member, and exemption from the burden of excess profits. For members, additional profits of 10 to 30% points are guaranteed compared to the existing maintenance plan, and the risk of increased contributions provides benefits such as a method of prepaying the price of the apartment to be paid in the future.
In addition, the existing urban regeneration project method will be improved to provide 30,000 units (Seoul 8,000 units) and 60,000 units (Seoul 38,000 units) as a small-scale maintenance project.
New homes were also designated in 15 to 20 areas nationwide, such as near Seoul and metropolitan cities, so that 263,000 houses could be supplied. An additional 13,000 units will be supplied to the planned areas of the Happy City in Sejong City by raising the floor area ratio or utilizing the reserved area. Detailed location and volume will be announced separately.
The government plans to supply more than 70-80% of the total housing supply according to this measure as pre-sale apartments. He announced that it will significantly increase the supply of public pre-sale housing at a low cost of current generation to major downtown areas such as Seoul and the metropolitan area, and that it will also expand public rental housing and supply some as public private housing. However, the specific model and quantity of public private housing will be announced later.
The government decided to increase the ratio of general supply to the quantity supplied by this measure, while supplying some by lottery. This is to ensure that homeless people in their 30s and 40s have enough opportunities to find their own home. To this end, in the case of public pre-sale, the general supply of 85㎡ or less is 15%, which is raised to 50%, and a lottery system is introduced for 30% of the general supply.
In order to block speculative demand, the government will not give priority supply rights to those who have signed a new purchase contract for existing real estate within the business area after the date of the announcement of the measures. In addition, the projected area is designated as a land transaction permission area, restricting the purchase of real estate, not for actual residence or actual management purposes. For speculative demand, such as abnormal transactions in the projected area and neighboring areas, actual transaction planning surveys and on-site inspections are strengthened to crack down.
In particular, areas that the industry and local governments refer to as projected areas are planning to strengthen price trend checks and exclude them from the project or discontinue designation of projected districts if unrest or abnormalities are found. The government explained that it is a case of 10-20% increase in recent transaction price or transaction volume than before as a condition to exclude from the target area.
With this measure, the new housing supply to Seoul and other metropolitan areas is 616,000 units. If we add up to 1272,000 units announced by the government so far, a total of 1888,000 units will be supplied to the metropolitan area. In this measure, the government announced plans to supply 220,000 units to regions such as five metropolitan cities.
