[2·4 Supply Measures] High-Density Development in 'Station Areas, Semi-Industrial, Low-Rise'... 306,000 Housing Units Supplied

'Introduction of New "Urban Public Housing Complex Project"
Rapid Renovation of Aged and Neglected Areas
Supply of 110,000 Units through Small-Scale Maintenance Projects
Expansion of Station Area Floor Area Ratio up to 700%'

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The key sources of housing supply highlighted in the government's housing supply expansion plan announced on the 4th are areas near subway stations, semi-industrial zones, and low-rise residential areas. The government plans to secure insufficient housing supply by newly introducing the ‘Urban Public Housing Complex Project’ and developing these areas with high density. The volume developed in this way is expected to reach about 306,000 units over the next five years. This accounts for 36.6% of the total supply volume of 836,000 units announced in the supply plan on that day.

◆ Temporary Introduction for 3 Years... Seoul Targets Supply of 117,000 Units

The ‘Urban Public Housing Complex Project’ is a system introduced temporarily for three years. It is an extraordinary measure to swiftly renovate aging or neglected urban areas near subway stations, semi-industrial zones, and low-rise residential areas without proper development.

The volume supplied through the Urban Public Housing Complex Project by 2025 is 196,000 units nationwide: 123,000 units near subway stations, 12,000 units in semi-industrial areas, and 61,000 units in low-rise residential areas. Among these, 117,000 units will be supplied in Seoul through this method, with 30,000 units in Incheon and Gyeonggi, and 49,000 units in the five major metropolitan cities.

Through small-scale maintenance projects, a total of 110,000 units will be supplied: 62,000 units in Seoul, 16,000 units in Incheon and Gyeonggi, and 32,000 units in the five major metropolitan cities.

The Urban Public Housing Complex Project proceeds by landowners, private companies, and local governments discovering underdeveloped prime urban sites and proposing project implementation to Korea Land and Housing Corporation (LH) or Seoul Housing Corporation (SH). The Ministry of Land, Infrastructure and Transport and local governments review and designate the area as a planned district to promote the project. Considering public interest and speed, the government plans to proceed under the Public Housing Special Act.

Public-Led Fast Track to Shorten Project Period

If two-thirds or more of the landowners agree within one year of the planned district designation, the project is confirmed. To accelerate the project, it will proceed in a public-led ‘fast track’ manner applying integrated review and permit procedures.

To activate the project, the government has also prepared measures to improve profitability, such as increasing floor area ratio and limiting donation requirements. Landowners are guaranteed higher returns compared to existing methods and are provided with priority supply benefits for apartments and commercial spaces.

A method has been introduced to enhance convenience by allowing landowners to pay the sales price of newly built apartments and commercial spaces in kind with existing owned assets and then settle accounts. In addition to guaranteed additional profits, development gains will be used to provide housing means for residents without the ability to bear costs, and support measures for tenant and small business owner relocation and livelihood have been prepared.

High-Density Development with Floor Area Ratio up to 700% in Subway Station Areas

Projects promoted through the Urban Public Housing Complex Project will be developed in a customized manner according to the characteristics of locations such as subway station areas, semi-industrial zones, and low-rise residential areas. In particular, subway station areas (over 5,000㎡) will have the floor area ratio increased up to 700% and the ratio of commercial facilities relaxed. They will be developed as ‘Residential-Commercial High-Density Districts’ combining residential, office, and commercial functions.

Currently low-density semi-industrial areas (over 5,000㎡) will be transformed into ‘Residential-Industrial Convergence Districts’ combining startup incubation spaces, research and development (R&D) centers, and youth dormitories. Deteriorated low-rise residential areas (over 10,000㎡) will be developed into ‘Housing Supply Activation Districts’ with relaxed building and urban regulations such as lighting and height standards, equipped with excellent residential environments and childcare facilities.

Furthermore, for small-scale sites (under 5,000㎡) in subway station areas and semi-industrial zones, a new ‘Small-Scale Redevelopment Project’ will be established to activate housing supply by improving existing small-scale maintenance projects. These areas have been difficult to develop on a large scale due to a mix of new and old buildings. When local governments designate the area, landowners implement the maintenance project. To activate the project, restrictions on setting maintenance district boundaries, land acquisition requirements, urban and building regulations will be significantly relaxed, and tax benefits will be provided.

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