The 'Public' Wind Blowing in Gangnam... Yangjae 2-dong 1 District Joins Urban Complex Project

Promotion of Urban Public Housing Complex Project Centered on Aging Residential Areas in Seocho
Lower Aging Criteria and Preferred Benefits Like 1+1 Move-in Rights Compared to Redevelopment
Securing Consent from Over Two-Thirds Is Key

[Asia Economy Reporter Ryu Tae-min] Recently, there has been a movement to consider participating in the government-led Urban Public Housing Complex Project, centered around the aging residential areas in Seocho-gu, which had been passive in public-led development projects. The atmosphere is to find a breakthrough for the stagnant project through the public-led project that applies relatively lower aging criteria. However, industry insiders say that the actual success of the project remains to be seen as securing resident consent rates for participation is not easy.

According to the maintenance industry on the 16th, the owners of Yangjae 2-dong 1 District in Seocho-gu recently launched a redevelopment promotion committee (tentative name) and began the resident consent process. They created an owners' meeting cafe and are discussing the application for the Urban Public Housing Complex Project through a group chat room.

The 'Urban Public Housing Complex Project' is a public-led development project introduced by the government as part of the 2·4 measures. It aims to supply housing through high-density development led by the public sector, targeting station areas, low-rise residential areas, and semi-industrial zones. Residents receive incentives such as floor area ratio benefits and relaxed urban regulations, and the project proceeds through a public-led fast track that simplifies approval procedures like integrated reviews.

The reason why the owners of Yangjae 2-dong 1 District turned their attention to the Urban Public Housing Complex Project is due to the aging criteria. Currently, in 1 District, the number of newly built villas is increasing, so to meet the private redevelopment aging standard of 'two-thirds of buildings being over 30 years old,' they would have to wait more than 10 years. However, by choosing the Urban Public Housing Complex Project, the station area standard of '60% or more of buildings over 20 years old' applies, allowing redevelopment to proceed immediately.

The benefits of the Urban Public Housing Complex Project are also a reason for interest in the project. A representative of the 1 District redevelopment promotion committee said, "Among the owners in 1 District, the proportion of multi-homeowners is relatively high," and explained, "Although the appraisal value tends to be somewhat lower compared to private redevelopment, multi-homeowners can receive housing rights as '1+1,' and capital gains tax surcharges are exempted under the Urban Public Housing Complex Project."

Yangjae 2-dong 1 District is located in the Shinbundang Line Yangjae Citizens' Forest station area. It is a Type 2 General Residential Area, with about 134,000 square meters of land hosting approximately 2,200 households and neighborhood living facilities. Despite the excellent location, redevelopment has not progressed because the increasing number of newly built apartments prevents meeting the aging criteria.

Yangjae 2-dong 2 District, located nearby, is also reportedly collecting consent forms recently to participate in the Urban Public Housing Complex Project. Like 1 District, 2 District is in the Yangjae Citizens' Forest station area and has seen little progress in private redevelopment for the same reasons. Residents of 2 District have recently inquired with Seocho-gu about project promotion.

The key issue is securing resident consent necessary for project promotion. While only 10% resident consent is required to apply as a candidate site, more than two-thirds approval is needed to confirm the candidate site. In fact, in 1 District, the high proportion of commercial property owners makes securing consent rates challenging, according to local real estate agents.

Another variable is the government's lukewarm attitude toward selecting candidate sites in the 'Gangnam area' due to concerns about stimulating housing prices. For example, Daechung Village in Ilwon-dong, Gangnam-gu, previously applied as a candidate site for the Urban Public Housing Complex Project but was rejected and is now pursuing rapid integrated planning redevelopment promoted by Seoul City.

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