Abolition of Residential Maintenance Index System and Introduction of Public Planning... Oh Se-hoon Eases Regulations Starting with Redevelopment

[Image source=Yonhap News]

[Asia Economy Reporters Kim Hyemin and Lim Onyu] The Seoul Metropolitan Government will abolish the Residential Maintenance Index system, which has been considered an obstacle to the designation of redevelopment maintenance zones. By introducing city-led 'public planning,' the average five-year period required for zone designation will also be shortened. Through this, the city plans to identify more than 25 maintenance zones annually and supply 130,000 housing units by 2025.

On the 26th, Seoul Mayor Oh Se-hoon announced the 'Redevelopment Activation Plan' containing these details. This is the first regulatory easing measure introduced by Mayor Oh since his inauguration.

Seoul is starting regulatory easing with redevelopment because it stimulates housing prices less than reconstruction projects. A Seoul city official explained, "After 2026, there is concern that the annual supply of new housing units will sharply decrease to about 4,000 units," adding, "We decided to prioritize housing supply through redevelopment projects, which also improve poor residential environments."

This regulatory easing plan focuses on improving the problem of strict zone designation requirements and the complex four-step procedure, which currently takes an average of over five years to designate a maintenance zone.

First, the Residential Maintenance Index system will be abolished. Mayor Oh made it possible to designate redevelopment zones if only the legal requirements (such as two-thirds or more of buildings being aged and a zone area of 10,000㎡ or more) are met. Currently, only 14% of old low-rise residential areas needing redevelopment meet the Residential Maintenance Index, but relaxing the criteria to legal requirements will increase this to 50%.

Even with the abolition of the Residential Maintenance Index, procedures such as resident consent will be strengthened and simplified. Currently, to designate a maintenance zone, resident consent must be met at three stages: resident proposal, preliminary feasibility study, and zone designation. Seoul will strengthen the consent rate at the early resident proposal stage from the existing 10% to 30%, while eliminating resident consent at the preliminary feasibility study stage. Mayor Oh explained, "This measure is to speed up the process by confirming clear resident intentions early in the project."

The city will also introduce 'public planning' led by Seoul. To be designated as a maintenance zone, the process must go through a preliminary feasibility study, basic living zone planning, and maintenance plan establishment. Previously, residents proposed and district offices planned, which usually took five years. Seoul plans to take full responsibility for this process and effectively integrate and abolish the preliminary feasibility study to shorten the period to two years.

Additionally, among redevelopment cancellation zones, areas that have become aged or slum-like and require urgent residential environment improvement will be designated as new zones based on resident consensus. The seven-story height restriction regulation in Type 2 General Residential Areas will also be abolished. Furthermore, an annual redevelopment zone designation contest will be held to discover more than 25 zones each year. To implement these regulatory easing measures, Seoul plans to revise the Basic Urban and Residential Environment Maintenance Plan by October.

Through this, Seoul aims to supply 26,000 housing units annually and a total of 130,000 units by 2025. Mayor Oh stated, "We will make up for the decrease in housing supply opportunities over the past 10 years," adding, "At the same time, under a firm principle of zero tolerance for real estate market disruption, we will continuously devise additional measures by fully mobilizing Seoul's authority if necessary."

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