Ministry of Land and Seoul City Launch 2nd Public Redevelopment Contest... Selection of 18,000 Households

Candidate Sites Selection in April-May Next Year... 18,000 Households
Implementation of Anti-Speculation Measures Such as Share Splitting and Gap Investment Restrictions

The area around Jangwi 8 District, Seongbuk-gu, Seoul [Image source=Yonhap News]

The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced on the 29th that the second public redevelopment project candidate site recruitment will be conducted for 61 days from the 30th until February 28 of next year. The final candidate sites are planned to be selected around 18 locations (18,000 households) between April and May next year.

The target for this public redevelopment project candidate site recruitment is the same as the first recruitment, focusing on existing maintenance zones within Seoul or new/released zones preparing for designation as maintenance zones.

Areas that were rejected in the private redevelopment candidate sites (Rapid Integrated Planning) selected by Seoul on the 27th are also eligible to apply. Areas with low business feasibility or requiring adjustment of public interests can continue the project through public redevelopment.

Following the redevelopment deregulation announced by Seoul in May, the residential maintenance index system has been abolished and regulations related to Type 2, 7-story buildings have been relaxed, making it possible to proceed with redevelopment projects in areas where it was previously difficult due to these regulations.

The resident consent rate required for application has been raised to 30%, reflecting changes in Seoul's Urban and Residential Environment Maintenance Basic Plan. Considering this, the recruitment period has been extended compared to the first recruitment (45 days).

The autonomous districts receiving applications will evaluate the designation requirements of the maintenance zones in the relevant areas and recommend up to four zones deemed suitable for public redevelopment to Seoul.

Seoul will establish a rough plan through the Korea Land and Housing Corporation (LH), Seoul Housing and Communities Corporation (SH), etc., and finalize the candidate sites through a joint selection committee of the Ministry of Land, Infrastructure and Transport and Seoul between April and May next year. The scale of the selected candidate sites is planned to be around 18,000 households, and once selected, follow-up procedures such as designation of public implementers will proceed.

Anti-speculation measures will also be implemented to prevent share splitting, gap investment, uneconomical construction acts, and sales fraud. The standard date for calculating the rights of association members to receive allocations is scheduled to be announced as the recruitment announcement date, 'December 30, 2021,' and land transaction permission zones designation and building permit restrictions will be implemented immediately upon candidate site selection.

Kim Gi-yong, Director of the Housing Maintenance Division at the Ministry of Land, Infrastructure and Transport, said, "Public redevelopment offers benefits such as the application of the legal maximum floor area ratio of 120%, integrated review, and exemption from the price ceiling system, and a professional public implementer manages the entire project, enabling rapid project promotion." He added, "Since the first recruitment received great response with 70 applications, we expect much interest in this recruitment as well."

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