Mixed Reactions to 2nd Public Redevelopment Announcement: "Regaining Momentum" vs "False Hope"

Selected Sites like Singil 1, Yeonhui 721-6 "Welcome... No Alternative to Public Redevelopment"
'Shocking Elimination' Hannam 1 "Long Wait Ends as Hope Torture"
Many Challenges Remain for Public Redevelopment... COVID-19, Seoul Mayor, and Other Variables

[Image source=Yonhap News]

[Asia Economy Reporter Onyu Lim] "With the announcement of the 2nd round of public redevelopment candidate sites, the momentum that had faded after the Korea Land and Housing Corporation (LH) controversy is being revived."

The 16 districts selected as the 2nd round candidate sites for the public redevelopment pilot projects by the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport are experiencing mixed feelings with those that were not selected. The districts chosen as candidates are excited with expectations that the long-neglected old housing will transform into new foundations. On the other hand, those who faced rejection responded that "the long wait ended as a form of hope torture."

According to the maintenance industry on the 31st, areas such as Shingil 1 District in Yeongdeungpo-gu, selected as candidate sites this time, are responding that they have gained new project momentum through public redevelopment. Park Jong-deok, Chairman of the Public Redevelopment Promotion Committee for Shingil 1 District and President of the National Public Redevelopment Council, said, "Most of the 2nd round candidate sites were either unable to be designated as maintenance zones or were removed from such zones despite severe aging, so there was no alternative other than public redevelopment," adding, "The LH incident had increased residents' anxiety, but now the atmosphere is one of mutual congratulations."

Shingil 1 District was deregulated as part of the New Town exit strategy, with 90% of the housing being old. If public redevelopment proceeds, the existing 552 households will be replaced by 1,510 new apartment units. A representative of the resident promotion group for Yeonhui 721-6 in Seodaemun-gu, another selected site, also said, "Due to the hilly terrain, the business feasibility was low, and private redevelopment was unlikely," adding, "Since the will to develop was strong, residents are welcoming it."

On the other hand, those who were rejected or put on hold in the 2nd round candidate sites are feeling a great sense of loss. Especially, Hannam 1 District in Yongsan-gu, which had attracted attention as a prime redevelopment area, is reacting with shock. This is because the resident consent rate was estimated to be over 70%. One owner in this district said, "Ultimately, we endured hope torture for eight months," and questioned, "Did they listen more to the minority opposition than the majority support?" However, the Seoul Metropolitan Government explained that resident opposition was not the reason for rejection. A Seoul city official said, "It was a comprehensive consideration including the fact that antique furniture streets have been established."

Although the selection of public redevelopment candidate sites has ended, there is still a long way to go. Among the 1st round candidate sites selected last January, Bongcheon 13 District in Gwanak-gu is the only one that has held a project briefing session. Various variables such as COVID-19 and the LH employee speculation controversy are hindering progress. The upcoming Seoul mayoral by-election, just a week away, has also emerged as a new variable. A maintenance project consulting industry official said, "Candidate Oh promised to ease redevelopment regulations such as increasing floor area ratio through ordinance amendments if elected," adding, "Districts at the crossroads between private and public redevelopment could face increased resident conflicts."

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