Yoon: "100,000 Additional Housing Units to be Supplied in 1st Phase New Towns"... Effectiveness Remains Uncertain

Sufficient Need for Reorganization but No Concrete Plans and Legal Revisions Required
Controversy over Fairness with Other Redevelopment Projects May Also Stimulate Housing Prices in Surrounding Areas

Yoon Seok-yeol, the presidential candidate of the People Power Party, has unveiled a housing supply plan through the reconstruction of first-generation new towns in the metropolitan area.

On the 6th, Yoon held a press conference at the People Power Party headquarters in Yeouido, Seoul, announcing a pledge to enact a special law for the redevelopment of first-generation new towns, increase floor area ratios, and systematically promote redevelopment projects to supply more than 100,000 additional households. However, specific measures were not detailed, and there was no mention of other aging areas. Questions have been raised about the feasibility due to potential controversies over fairness with other redevelopment projects, such as the need for legal grounds regarding tenant priority purchase rights. There is also concern that this could stimulate housing prices not only in the first-generation new towns but also in surrounding areas, posing an obstacle.

◆ Rapid Aging Due to Poor Construction "Necessity is Clear" = First-generation new towns in the metropolitan area, including Bundang, Ilsan, Pyeongchon, Jungdong, and Sanbon, began occupancy in 1992 and consist of about 290,000 households in total. Of these, approximately 280,000 are apartments or other multi-family housing. The average floor area ratio by new town ranges from 169% to 226%. Although Yoon’s camp did not disclose the exact scale of the increase, they envision adjustments through land use changes and upward zoning. For example, in Ilsan, applying the legal maximum floor area ratio of 300% to the current average of 169% in a type 3 general residential area could secure about 51,000 households.

Experts consistently agree that the "necessity is clear" for redevelopment. Most areas have met the reconstruction eligibility period of 30 years and are experiencing rapid aging due to poor construction. The number of parking spaces is only 0.8 per household, causing chronic parking shortages. Leaders of local governments in first-generation new towns signed a win-win agreement in December last year to revitalize aging first-generation new towns and have demanded the government enact a special law.

◆ Concerns Over Deterioration of Residential Quality Due to High Density = The market also agrees that the 30-year-old first-generation new towns can no longer be neglected, but there are concerns that increasing the floor area ratio will inevitably cause additional problems related to high-density development.

Lim Byung-chul, chief researcher at Real Estate R114, said, "Roads and infrastructure in first-generation new towns were planned according to the current scale, but redevelopment into large complexes and high-rise buildings could create new problems, including traffic congestion." In fact, the average population density of first-generation new towns is 233 people per hectare, about twice that of second-generation new towns.

It is also problematic that infrastructure conditions such as roads, which have worsened due to adjacent development in surrounding areas, could deteriorate further. Even in Bundang, areas like Yongin Suji, Jukjeon, and the Pangyo new town have already been developed.

◆ Tenant Priority Purchase Rights and Fairness Concerns = Yoon’s policy is to ensure that tenants benefit from redevelopment projects. For elderly households who find it difficult to bear the financial burden, housing will be provided during the redevelopment period, and tenants will be given priority subscription rights for general sales and opportunities to move into rental housing to facilitate resettlement. However, there is a high possibility that issues regarding the enactment of a special law and fairness with other redevelopment projects will arise.

Professor Lee Chang-moo of Hanyang University’s Department of Urban Engineering pointed out, "What about other redevelopment and reconstruction projects that are not first-generation new towns? Why shouldn’t tenants there receive priority purchase rights? There is inevitably a fairness issue," adding, "Is there any reason why residents in specific redevelopment and reconstruction areas should receive preferential treatment over other regions?"

Concerns about housing price stimulation due to high-density development also follow. Chief researcher Lim said, "First-generation new towns are scattered across various parts of the metropolitan area, and this could stimulate housing prices in surrounding areas as well," adding, "This is why the current government proposed remodeling as an alternative to improve residential environments through major repairs."

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