"Last Chance"... 60 Sites Enter Competition Over Public Redevelopment

Around 60 Applications for Public Redevelopment Pilot Project Sites
Especially Following the Release of New Town Areas Where Redevelopment Stalled
District Offices to Recommend Eligible Sites to Seoul City

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] The government's public redevelopment plan, proposed as a housing supply measure in downtown Seoul, has heated up. With unprecedented benefits such as increased floor area ratio and exemption from the price ceiling system, about 60 sites applied for the pilot project contest. Residents in areas previously blocked from redevelopment due to low profitability and conflicts among residents say, "Public redevelopment is the last chance."

According to Seoul City and the maintenance industry on the 8th, about 60 project sites applied for the public redevelopment pilot project contest. Applications surged on the deadline, far exceeding the initially expected 30 to 40 sites.

Not only existing maintenance zones but also planned maintenance zones and maintenance cancellation zones were included in the public redevelopment target, resulting in unexpected popularity. It is even reported that urban regeneration areas, which the government stated were not eligible for the contest, also applied.

In particular, many participants came from areas that had been designated as redevelopment maintenance zones but were later canceled. In Seongbuk-gu alone, six sites including Jangwi 8, 9, 11, 12 districts, Seongbuk 5 district, and Samseon 3 district applied. In Yongsan-gu, Hannam 1 district submitted an application. Hannam 1 district, considered the "largest prime site," received redevelopment promotion committee approval in 2011 but was removed from the maintenance zone in 2017 due to conflicts among residents, making it the only project canceled in Hannam New Town. Initially, two project entities planned to pursue public redevelopment, but recently, the project entities unified, raising expectations for project success.

Public redevelopment is a redevelopment project promoted with the participation of public entities such as Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH). Due to the extraordinary incentives such as increased floor area ratio, simplified permit procedures, and exemption from the price ceiling system when participating in public redevelopment, about 60 sites are believed to have applied.

The government aims to supply more than 20,000 households by 2023 through public redevelopment. Among the public redevelopment contest applicants, only those passing each district office's review of zone designation requirements and residential maintenance indices will be recommended to Seoul City. Subsequently, LH and SH will conduct preliminary planning and project site analysis, followed by consultations with related departments before submission to the selection committee. The selection and notification of candidate sites are expected as early as next month for existing zones and as early as March next year for new zones.

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