[Desk Column] Should We Shake Up Urban Spatial Structure to Control Housing Prices?

There is an infrastructure that foreign visitors to Seoul admire and envy the most. It is the subway network that connects the entire city, spanning 605㎢, like a spider web. It is said that there are roughly over 300 stations. With an average distance of 800 meters between each station, it means that in most areas, you can reach a subway station within a 10-minute walk. This is why the term ‘station area’ (yeoksegwon) has become meaningless within Seoul city.

For a government that had been agonizing over housing prices soaring by tens of millions of won overnight, subway stations in Seoul have emerged as a savior. The government, which declared a revolutionary or drastic expansion of supply, has presented ‘station area’ development as one of the three core pillars of supply expansion.

The key plan is to raise the floor area ratio (FAR) of residential areas around stations, currently at about 200-250%, up to a maximum of 700%. The logic is that this can be achieved by changing the zoning of general residential areas to semi-residential areas. There is also consideration to expand the station area range from the current 300 meters to 500 meters. The main roads connected to stations would, in theory, all become targets for high-density development. Analysts inside and outside the government estimate that about 100 stations, roughly one-third of all stations in Seoul, could be developed in this way.

The idea is to build more houses by significantly increasing density. The government’s shift in stance, which previously showed allergic reactions whenever supply was mentioned, might seem welcome at first glance. However, many experts respond with "This is not the right approach." This reaction is especially prominent among urban planning experts. To summarize in one sentence: "Are you trying to ruin the city just to build houses?"

Why does this criticism arise? The government hastily initiated amendments to the Enforcement Decree of the “National Land Planning and Utilization Act” (Gukto Gyehoekbeop) to expand the floor area ratio around stations. The National Land Planning and Utilization Act, created in 2002 by integrating the existing Urban Planning Act and National Land Use Management Act, is the highest-level law that sets the standards for how the national land is managed, preserved, and utilized. Broadly, it governs everything from urban development and large-scale industrial complexes to even the construction of a small farm shed in rural areas, ensuring that nothing deviates from the principles established by this law.

The experts’ concerns stem from the fear that the spatial structure of the city, which has been strictly maintained to build enough houses, could be shaken. The priorities have been reversed. What happens if residential areas are changed to semi-residential areas as the government proposes? According to current Seoul city ordinances, the floor area ratio for third-class general residential areas is 250%. If changed to semi-residential areas and raised to 700%, the density would increase nearly threefold. This is more than twice the density of apartment floor area ratios, which were criticized in the past as ‘chicken coops’ when they slightly exceeded 300%. The land area remains the same, but two to three times more people would have to squeeze in and live on it. Naturally, the residential environment would deteriorate. As the population increases, infrastructure shortages would also arise.

Experts counter-question, "If you want to increase housing by shaking up the city structure, then why are you blocking perfectly fine reconstruction and redevelopment projects?" Many private redevelopment and reconstruction projects are currently stalled due to government regulations. If these were allowed to proceed, the housing problem could be solved without resorting to excessive high-density development.

‘Stabilizing housing prices’ is an urgent policy goal. However, the basic framework of urban planning should not be shaken because of this. It is worth reflecting on whether ‘high-density development around stations’ is a decision made after sufficient consideration of the serious urban spatial structure.

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