Increase in Integrated Reconstruction Projects in Ilsan and Sanbon Complexes... "To Accelerate Project Progress"

Increasing Number of Complexes Preparing for Ilsan-Sanbon Integrated Reconstruction
Advantage of Greater Negotiation Power in Larger Complexes
Similar Floor Area Ratios by Complex Favor Integrated Reconstruction

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[Asia Economy Reporter Hwang Seoyul] As more complexes in the first-generation new towns are promoting integrated reconstruction projects, integrated reconstruction is becoming a prevailing trend. With the direction of the reconstruction policies for the first-generation new towns becoming clearer after much uncertainty, residents' expectations are rising.

According to the industry on the 29th, the 3rd, 4th, 10th, and 15th complexes of Hugok Village in Ilsandong, Ilsanseo-gu, Goyang-si, Gyeonggi Province formed an Integrated Reconstruction Promotion Preparatory Committee on the 25th. The four complexes in Hugok Village were built between 1994 and 1995 and are approaching 30 years since completion. They consist of a total of 2,406 households with a minimum exclusive area of 56㎡ and a maximum of 199㎡.

Previously, Integrated Reconstruction Preparatory Committees were also formed in the 1st and 2nd complexes of Gangchon Village and the 1st and 2nd complexes of Baekma Village in Madu-dong, Ilsandong-gu (total 2,906 households), as well as in the 7th Daerim Solgeo Complex, Lotte Myohyang, Geukdong Baekdu, Hanyang Baekdu, and Dongseong Baekdu 9th Complex in Sanbon-dong, Gunpo-si, Gyeonggi Province (total 3,804 households). The formation of integrated reconstruction complexes is becoming a trend in the reconstruction projects of the first-generation new towns.

The industry explains that larger complexes have greater negotiating power to push projects forward. Apartment complexes in the first-generation new towns were built around the same time, so the degree of aging is similar, making it inevitable for reconstruction projects to proceed cyclically. Since President-elect Yoon Seok-yeol pledged to supply an additional 100,000 housing units through the redevelopment of first-generation new towns, larger complexes that can relatively increase supply volume are more likely to receive favorable priority.

Additionally, in the case of first-generation new towns, the floor area ratios (FAR) of neighboring complexes are at similar levels, which also favors integrated reconstruction projects. Typically, if there is a difference in FAR between complexes, disputes arise due to conflicting interests, but in first-generation new towns, the risk of disputes is low. Kim In-man, director of Kim In-man Real Estate Economic Research Institute, stated, "In new towns, neighboring complexes have similar FARs, making them practically the same complex," adding, "there is no need to proceed with reconstruction projects separately."

As the policies for the first-generation new towns, which had been reversed, find their footing, expectations for aging complexes in these areas are growing. The day before, the Presidential Transition Committee reportedly reviewed raising the FAR of first-generation new towns by at least 300% and agreed to expedite the passage of a ‘First-Generation New Town Special Act’ during the first ruling party-transition committee meeting with the People Power Party. A representative of the Hugok Village Integrated Reconstruction Preparatory Committee said, "Since President-elect Yoon Seok-yeol’s election, momentum for reconstruction projects has increased."

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