Real Estate Acquisition Projects Also Recognized as Comprehensive Urban Regeneration... Yangnam Market Development Accelerates

Public and Private Partnership for Real Estate Acquisition... First Case of Urban Regeneration Certified Project
Development Breakthrough for Long-Stagnant Yangnam Market
Private Rental Housing to Be Supplied on Acquired Site

[Asia Economy Reporter Kim Hyemin] A real estate purchase project jointly participated by the public and private sectors in Seoul has become the first case designated as an urban regeneration recognition project. The redevelopment of Yangnam Market in Yeongdeungpo-gu, which had been stalled for a long time, is the subject. It is evaluated as presenting a new model that not only recognizes comprehensive urban regeneration including real estate purchase projects but also secures publicness through joint participation of the public and private sectors, thereby increasing the speed of the project.

According to Seoul City on the 27th, the Urban Regeneration Committee held its 5th meeting the day before and conditionally approved the designation plan for the Yangpyeong-dong 1-ga urban regeneration recognition project in Yeongdeungpo-gu.

An urban regeneration recognition project is a "point unit" regeneration project promoted outside the urban regeneration activation area. If the project area is less than 100,000㎡ and the need for urban regeneration is recognized, the project can be implemented as an urban regeneration project through review only without establishing an activation plan. The advantage is rapid project promotion.

The designated Yangpyeong-dong 1-ga urban regeneration recognition project in Yeongdeungpo-gu is a real estate purchase project linked to the "Yangnam Market Maintenance Project." Although the project promotion plan was approved in 2010, the project had been stalled for a long time due to issues such as funding. However, with the designation of this real estate purchase project plan as an urban regeneration recognition project, project feasibility has been secured, making full-scale promotion possible.

The Yangnam Market Maintenance Project Association will sign an agreement on future real estate purchases with ‘Gonggan Jiwon REITs,’ a private investment company funded by Seoul Housing and Communities Corporation (SH) and the Housing and Urban Fund. The association will purchase houses and commercial buildings, and the remaining real estate except for living SOC facilities will be purchased and utilized by Gonggan Jiwon REITs. The plan is to proceed with the project as soon as the association and the private investor decide on the purchase targets and amounts.

On the land purchased by Gonggan Jiwon REITs, private rental housing will be constructed and provided to newlyweds, youth, and others. A total of 78 households will be supplied, including 30 households for association members and 48 households of publicly supported private rental housing, but the supply of rental housing may vary depending on the association members' sales portion. The rental housing will be supplied at rents lower than the surrounding market prices according to the ‘Special Act on Private Rental Housing,’ and the rent increase rate will be limited to within 2% per year.

Considering the regional characteristic of insufficient childcare facilities, a daycare center will also be installed. In addition, a small business support center will be built to be used as a space for tenants in the building and surrounding small business owners.

SH and Gonggan Jiwon REITs will reflect these details to change the market maintenance project promotion plan by next month, finalize the purchase targets and prices by October, and sign sales contracts with the association. A Seoul city official said, "We aim to start construction this year and complete the project in 2023."

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