Geonhyeop Proposes Enactment of Special Act to Expand Supply of Urban Housing and More

[Asia Economy Reporter Inho Yoo] The Korea Construction Association proposed the enactment of a "Special Act for Expanding Supply of Urban Housing, etc." to the government on the 23rd.

On the 23rd, the Korea Construction Association emphasized the urgent need for fundamental supply measures and prepared specific plans to expand housing supply, submitting them to government agencies including the Prime Minister's Office, Ministry of Land, Infrastructure and Transport, Ministry of Strategy and Finance, and the National Assembly.

They suggested that more than 500,000 households could be supplied in the metropolitan area through measures such as promoting ultra-high-density urban development, revitalizing redevelopment in areas where station-area redevelopment has been lifted, actively promoting private park special projects, and allowing upward reconstruction of first-generation new towns.

The association pointed out that the unprecedented increase in market liquidity due to low interest rates and quantitative easing, combined with the supply-demand imbalance of housing in urban areas, has caused a vicious cycle of 'panic buying' by actual demanders, continuously driving up housing prices in the metropolitan area.

Accordingly, the association presented plans to expand urban housing supply and the expected supply volume.

As measures to expand housing supply, the association proposed promoting ultra-high-density urban development, revitalizing development in station-area redevelopment lifted zones, actively promoting private park special projects, converting existing urban buildings to residential use, allowing vertical extension through building remodeling, relaxing floor and area restrictions in street housing maintenance projects, promoting innovative urban regeneration projects, supplying rental housing by utilizing aging public buildings in urban areas, activating complex development of idle national and public lands, utilizing disaster prevention facility sites such as retention basins, actively promoting three-dimensional urban development, developing hilly areas for disaster prevention and urban regeneration, utilizing green belts, complex development of school facilities, and allowing comprehensive upward reconstruction of first-generation new towns.

Regarding the expected supply volume, the metropolitan area remodeling promotion complexes total 41 sites with 25,271 households, and they claimed that allowing vertical extension of buildings is a supply method that can replace reconstruction projects. They also noted that relaxing the floor limit in street housing maintenance projects from 7 to 15 floors and easing the site area restriction from 10,000㎡ to 20,000㎡ could expand supply by four times.

They stated that green rental housing could be supplied by applying eco-friendly technologies and advanced construction methods to green belt areas rated 3 to 5 with low preservation value, and that as of 2018, the area of 3 to 5 grade green belt regions within Seoul was 29㎢.

They also judged that by applying increased floor area ratios during reconstruction of first-generation new towns (Bundang, Ilsan, Pyeongchon, Jungdong, Sanbon), which are entering full-scale aging, alternative housing to Seoul could be supplied. Applying a floor area ratio of 400% could supply about 150,000 households, and since first-generation new towns have sufficient living infrastructure, the burden of infrastructure costs is not high.

Through this, they claimed that at least 500,000 households of housing supply in the metropolitan area could be secured early.

To implement this, they proposed enacting a special law for expanding supply of urban housing, etc. They argued that innovative regulatory exceptions such as floor area ratio, zoning upgrades, and land use changes could be applied, and that development profits generated could be recovered through rental housing supply, with simplified procedures and one-stop consultations also possible.

An association official said, "Only by forming a strong supply expansion signal through detailed and systematic supply blueprints can the anxiety of actual demanders about securing their own homes and the psychology of speculative buying be quickly calmed."

This content was produced with the assistance of AI translation services.