Announcement of 1st Phase Candidate Sites for 2·4 Urban Policy Projects... 21 Locations in Yeongdeungpo, Eunpyeong, Dobong, and Geumcheon

Selection of Candidate Sites for 'Urban Public Housing Complex Project'
21 Sites Selected Excluding 109 Areas Under Redevelopment
Landowners' Profit Rate Expected to Improve by About 30%P
Active Prevention of Speculative Demand... Cooperation with National Tax Service and Police

[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] As the first pilot project sites for the February 4 housing supply plan, 21 locations across four districts in Seoul?Geumcheon-gu, Dobong-gu, Yeongdeungpo-gu, and Eunpyeong-gu?have been selected. The total supply volume amounts to 25,000 housing units, comparable to the scale of Pangyo New Town.

On the 31st, the Ministry of Land, Infrastructure and Transport announced that among 109 proposed candidate sites in the four districts of Geumcheon, Dobong, Yeongdeungpo, and Eunpyeong, after excluding redevelopment projects and small-scale projects, 21 sites were selected from 62 candidates for the Urban Public Housing Complex Project following a review.

21 Sites Including Eunpyeong Yeonsinnae Station Area... 25,000 Housing Units to be Supplied

Major candidate sites include Eunpyeong Yeonsinnae Station area, Dobong Changdong semi-industrial zone, Yeongdeungpo Singil-dong low-rise residential area, and Geumcheon-gu Gasan Digital Complex Station area.

The Eunpyeong Yeonsinnae Station area, despite abundant housing demand due to Yeonsinnae Station and GTX station accessibility, had low project feasibility under existing urban plans, making private development difficult. The government plans to develop this area into a residential-commercial complex hub with both commercial and residential functions through high-density development involving public participation.

The Dobong Changdong semi-industrial zone has suffered from a lack of urban infrastructure and severe aging since becoming a residential area, without undergoing redevelopment. Currently, since redevelopment requirements are not met, resident-led residential environment improvements are difficult, so the government will promote urban function restructuring through public participation projects.

In the case of Yeongdeungpo Singil-dong low-rise residential area, although located at the center of Singil New Town, development has stagnated since the redevelopment zone was lifted in 2014. The public sector will participate to improve project feasibility and supply public owner-occupied housing and public rental housing for low-income residents.

Last month, the government announced the February 4 plan to supply 830,000 housing units nationwide, introducing the 'Urban Public Housing Complex Project' as a new initiative for three years to swiftly redevelop station areas, semi-industrial zones, and low-rise residential areas.

The first pilot project candidate sites selected this time were chosen by reviewing location and project feasibility requirements, focusing on local governments that first submitted proposals for the Urban Public Housing Complex Project where the public sector acts as the implementing body.

By district, there is one site in Geumcheon-gu, seven in Dobong-gu, four in Yeongdeungpo, and nine in Eunpyeong-gu. The scale can supply approximately 25,000 housing units.

Minister of Land, Infrastructure and Transport Byeon Chang-heum is leaving after the passage of the first supplementary budget for 2021 at the plenary session held at the National Assembly on the 25th. Photo by Yoon Dong-joo doso7@

Increased Floor Area Ratio Improves Landowners' Profitability by 30 Percentage Points

Analysis of the project effects for the 21 first pilot project candidate sites shows that urban planning incentives such as one to two-step zoning upgrades increase the floor area ratio by an average of 111 percentage points compared to self-development efforts.

The number of housing units supplied is analyzed to increase by an average of about 341 units per zone (39.9%) compared to self-development, through urban regulation relaxation and easing of infrastructure donation requirements within 15%.

In particular, landowners' profits are predicted to improve due to increased supply volume and project feasibility, with the priority sale price expected to be on average 63.9% of market price. Accordingly, landowners' profitability is expected to improve by an average of 29.6 percentage points.

The Ministry of Land, Infrastructure and Transport explained, "It is analyzed that the effect of project feasibility improvement will translate into tangible benefits for landowners through this project."

The candidate sites were selected through consultations with public implementers and local governments. Detailed project plans will be established through further discussions with local governments and others.

After holding resident briefings on project plans and effects, candidate sites that secure the 10% consent requirement from landowners will be designated as planned districts starting in July for rapid development.

For candidate sites that obtain resident consent and commence projects (district designation) this year, landowners will be guaranteed the highest profitability, 30 percentage points higher than private redevelopment projects. Additionally, the Ministry and local governments plan to focus support by prioritizing permits and approvals through urban and architectural regulation relaxations.

The government will also actively block speculative demand for candidate sites. Upon designation as planned districts, abnormal or unusual transactions will be investigated, and if necessary, reported to the National Tax Service or referred to the National Police Agency for investigation.

Meanwhile, for public direct implementation redevelopment projects, since confirmation of residents' intentions such as through associations is necessary, the candidate site selection process will proceed after gauging the willingness of associations within the district to participate.

Yoon Sung-won, First Vice Minister of the Ministry of Land, Infrastructure and Transport, stated, "We will focus government support on pilot project candidate sites to quickly show visible results," and added, "We will carry out the projects under public trust through thorough speculation verification of candidate sites."

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