Introduction of 'Gross Floor Area' in Seoul Redevelopment Rental Housing Assessment Standards... Increase in Medium-Sized Units

Selectable Criteria Between Number of Households or Total Floor Area
'Medium-sized Unit' Supply Possible When Applying Total Floor Area Criterion

A view of Eunpyeong New Town in Seoul, built using the 'social mix' method that combines rental housing and sale housing (photo unrelated to specific content of the article)

[Asia Economy Reporter Kim Hyemin] From now on, in redevelopment projects within Seoul city, the 'mandatory rental housing construction ratio' can be calculated not only based on the total number of households but also on the total floor area.

Seoul City announced on the 13th that it will notify the 'rental housing and housing size construction ratio in redevelopment projects' with this content and immediately apply it.

This notification follows the amendment of the 'Enforcement Decree of the Urban and Residential Environment Improvement Act,' which took effect on the 11th, and the Ministry of Land, Infrastructure and Transport's notice on the 'rental housing and housing size construction ratio in maintenance projects.'

The Urban and Residential Environment Improvement Act allows the mandatory rental housing construction ratio to be set by enforcement decree at up to 30% of the floor area in addition to the number of households, but the current enforcement decree only stipulates it based on the 'number of households.' Since 2020, the city has continuously proposed improvements related to this system.

Previously, since the mandatory rental housing supply ratio was regulated only by the 'number of households,' project implementers mainly supplied rental housing focused on small-sized units. However, from now on, as it can also be calculated based on floor area, it is expected that rental housing of various sizes, including medium and large units reflecting the demand of multi-child families, can be supplied.

The city also expects improvement in the difficulty of achieving a complete social mix due to the size difference between sale and rental households. Currently, most rental housing secured in redevelopment projects consists of small-sized units, while sale units are composed of medium or larger sizes, which limited mixing rental and sale households within the same building. However, with the securing of medium-sized rental housing, mixing within the main building will be possible, allowing the supply of the same quality for exterior and finishing materials.

Considering smooth redevelopment projects, the city set the appropriate ratio for securing rental housing at '10% for residential areas' and '5% for commercial areas.' These are the minimum standards set by the Ministry of Land, Infrastructure and Transport. Areas that have already received project implementation plan approval can also change the rental housing construction ratio from the number of households to the floor area basis and proceed accordingly.

Yoo Changsoo, Director of Seoul City's Housing Policy Office, said, "We will continue to diversify the types of rental housing supply to respond to rental housing demand reflecting changes in residential conditions and family composition over time."

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