Detailed conditions are not confirmed, and there is a possibility of conflict in the process of project promotion
Residents’ resistance to excluding urban regeneration areas… Raising the need for linkage between projects
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(Seoul = Yonhap News) Reporter Kim Dong-gyu and Hong Guk-gi = Interest is whether the public redevelopment project ambitiously promoted by the government as a supply measure can lead to a successful policy as it takes its first step by selecting a candidate site for a pilot project on the 15th.
Public redevelopment is a maintenance project method in which Korea Land and Housing Corporation (LH Corporation) and Seoul Housing and Urban Corporation (SH Corporation) participate as project co-executors to significantly increase the speed of the project to supply urban housing.
In addition, the improvement of the floor area ratio, the simplification of the licensing process, the exclusion of the pre-sale price limit, and the lack of business feasibility have been given unprecedented incentives, which attracts great attention from the maintenance sites, which have been sluggish in business promotion. Only 70 projects participated in the public redevelopment candidate site contest.
An official from the Redevelopment Promotion Committee in Heukseok 2 District, Dongjak-gu, Seoul, which was selected as a pilot project for public redevelopment, said, “It has been 12 years since the establishment of the association, but the opposition of the mall owners still has not met the requirements for the establishment of the association (over 75% consent rate).” “There was no reason to object because the incentives offered by the public are far better than those promoted by the private sector.”
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However, the amendment to the Urban Housing Environment Improvement Act containing incentives is currently pending in the National Assembly. As the law is still undergoing revision, detailed conditions have not been finalized.
Lee Tae-hee, an associate researcher at the Korea Institute of Construction Industry, said, “It can be harder to adjust the details, such as saying that the devil is in the details. The government focuses on expanding housing supply, He said that he plans to respect the opinions of the owners as much as possible, but there is a lot of possibility of conflict and delay in the business process.”
In addition, plans to lead multi-family housing and shopping mall owners with a high percentage of rental income to favor the business or to accommodate low-income owners who feel burdened with additional contributions are in the midst of fog.
Voices that profitability declines due to the condition that more than 50% of the houses, excluding the pre-sale for members, must be supplied as public leases remains a spark of future conflicts and business delays and withdrawals.
In fact, Dapsimni District 17, Dongdaemun-gu, Seoul applied for a public redevelopment project because of the advantage of avoiding the pre-sale price limit, but eventually withdrew the application due to concerns about deteriorating profitability and value due to the high rental housing ratio requirement.
Young-jin Ham, head of Jikbang’s Big Data Lab, suggested that “in order to run the business smoothly, it is necessary to ensure proper profits for members and balance publicity.” “It will be necessary to find, discuss, and persuade past cases.”
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The government has also prepared measures to prevent the inflow of speculative funds in this public redevelopment project, but there are also concerns that the inflow of speculative demand aimed at the benefit of redevelopment could increase the prices of old-age coalition and multi-family houses.
Heon-dong Kim, head of the Real Estate Reform Headquarters of the Citizens’ Alliance for Economic Justice Practices (Gyeongsilyeon), said, “There is a great concern that the prices of multi-family, multi-family, and row houses after apartments will skyrocket.” It can lead to more bloating results,” he criticized.
In addition, as the government excludes urban regeneration areas from the target sites for public redevelopment pilot projects, opposition and social controversy from local residents are expected to become a variable of success or failure.
The urban regeneration project is not a redevelopment through abolition or migration, but a concept that promotes regional activation while preserving the existing appearance.
Residents of the Changsin-Sungin Urban Regeneration Zone, which was selected as the No. 1 Urban Regeneration Activation Area in Seoul in 2015, are actively pursuing public redevelopment, saying that their residential environment has become rather poor due to the urban regeneration project.
However, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government are excluding areas where urban regeneration projects have been promoted from the selection of public redevelopment projects.
Experts agree that a link between urban regeneration and public redevelopment projects is necessary.
“Even in urban regeneration projects, there is clearly an unsustainable physical residential environment,” said Tae-hee Lee, associate researcher at Geon San-yeon. “Also, public redevelopment projects are permitted under the condition that the cooperative pays the budget for urban regeneration projects. It is rational in terms of public interest.”
Eun-hyung Lee, a senior researcher at the Institute for Construction Policy, said, “The reason that the government does not allow the promotion of public redevelopment projects in urban regeneration projects can be seen as recognition of policy failure.” “Pour water into the poison underneath the silver.”
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2021/01/15 07:30 sent