Seoul to Hold Resident Briefings to Boost Small-Scale Reconstruction... Aiming to Supply 8,000 Housing Units [Real Estate AtoZ]

Temporary FAR Relaxation for Small-Scale Buildings
Plan to Supply 8,000 Units at 60 Sites by May 2028

Apartment complexes and residential areas in Seoul. Photo by Yonhap News Agency

The Seoul Metropolitan Government is set to actively promote small-scale reconstruction projects. The city plans to publicize its policies through resident briefings and provide tailored support. The goal is to supply approximately 8,000 housing units by easing floor area ratio (FAR) regulations.

To accelerate small-scale reconstruction projects, the city announced on September 10 that it will hold region-specific "on-site briefings," starting with the first resident briefing session on September 9.

Previously, in May, the city revised its ordinance to temporarily ease the FAR for small buildings in Type 2 and Type 3 general residential areas up to the legal maximum for three years. As a result, the FAR for Type 2 areas increased from 200% to 250%, and for Type 3 areas from 250% to 300%.

This measure, designated as Regulatory Reform No. 33 (Temporary Easing of FAR for Small Buildings), applies to small-scale reconstruction projects (sites under 10,000 square meters), small-scale redevelopment projects (sites under 5,000 square meters), and autonomous housing maintenance projects (under 36 units).

The city aims to approve 60 small-scale reconstruction projects and supply about 8,000 housing units by May 2028, when the FAR relaxation period ends. It plans to identify 30 "priority management sites" and discover an additional 30 new project sites, providing public support for both.

For priority management sites, the city will consider the possibility of further FAR relaxation and, if necessary, offer additional consultations with public architects. New project sites will be identified after holding region-specific resident briefings targeting approximately 2,620 buildings that are over 30 years old or in poor condition. The city will provide preliminary data on the possibility of FAR relaxation to about 30 sites with development potential and collaborate with district offices to offer initial consulting support.

Additionally, the city will expand support for business feasibility analysis and institutional improvements. To facilitate prompt resident decision-making, Seoul has been providing annual feasibility analysis for small-scale reconstruction projects. On September 4, 2025, 16 project sites were selected for feasibility analysis. The analysis process includes current status surveys, resident interviews, feasibility studies, and resident briefings, which help reduce initial uncertainties and increase transparency in decision-making. The results include estimated contributions, before-and-after asset analysis, and regulatory relief alternatives.

The city has also proposed to the Ministry of Land, Infrastructure and Transport to allow small-scale reconstruction projects to access low-interest loan products from the Housing and Urban Guarantee Corporation and to establish dedicated funds, similar to street housing maintenance projects.

Choi Jinseok, Director of Housing at the Seoul Metropolitan Government, stated, "To revitalize the previously stagnant small-scale reconstruction sector, the city will directly host on-site briefings and provide enhanced public support. Following the announcement of Regulatory Reform No. 33 to improve project feasibility and the swift ordinance revision, we will continue proactive outreach to ensure substantial improvements in residential environments and expand housing supply."