Seoul City to Newly Apply Business Feasibility Adjustment Coefficient to All 60 Moa Towns, "Improved Conditions"

The Seoul Metropolitan Government will enhance conditions by newly applying a business feasibility adjustment coefficient to all 60 designated Moa Town sites.

On March 27, the city announced that its 4th Small-Scale Housing Redevelopment Integrated Review Subcommittee had approved proposed changes to the management plans for applying business feasibility adjustment coefficients to 60 Moa Town locations, modifications to the project implementation plans for 8 street housing redevelopment sites, and the management plan for the Moa Town area at 799 Jayang 1-dong, Gwangjin-gu.

The business feasibility adjustment coefficient is a system that adjusts the ratio of public rental housing supply and the extent of floor area ratio (FAR) relaxation based on the official land value of each site. The coefficient is calculated by comparing the official land value of the project area to the city’s average; areas with lower land values receive a higher adjustment coefficient, thereby reducing the burden of public contributions.

Generally, pre-sale prices are proportional to land prices. Therefore, while areas with higher land prices tend to be more profitable, low-priced areas may experience reduced business feasibility even under the same redevelopment conditions. Most Moa Town project sites are concentrated in the Gangbuk area and the southwestern region of Seoul, which has made project implementation challenging.

To address this structural issue, the city introduced the business feasibility adjustment coefficient that reflects official land values. The system has been improved to allow public contribution requirements to be tailored to local conditions. With this review, the city has simultaneously amended the management plans for the previously designated 60 Moa Towns, which is expected to improve conditions for Moa Housing project implementation. In particular, this round of Moa Town sites includes 26 in the northeastern region, 23 in the southwestern region, and 6 in the northwestern region, so the business environment for Moa Towns in Gangbuk and the southwestern parts of Seoul is expected to improve.

In addition, the adjustment coefficient will be applied to the 8 street housing redevelopment sites that passed the Moa Housing review, which is expected to improve business feasibility by reducing the burden on cooperative members. Previously, due to heavy burdens on members, some small-scale redevelopment projects had failed to progress to relocation and construction even after passing the integrated review. With this decision, the public contribution burden will be eased, improving project implementation conditions.

The standards for ensuring public interest will be maintained: securing at least 10% public rental housing, mandatory compensation for tenant losses (within Moa Towns) and support for tenant resettlement, social mix plans that do not discriminate between public and for-sale housing, and a public lottery for rental housing building and unit allocation. The city plans to simultaneously ensure both public interest and business feasibility.

Aerial view of Moa Town area, 799 Jayang 1-dong, Gwangjin-gu. Seoul City

Meanwhile, the Moa Town project in the area around 799 Jayang 1-dong, Gwangjin-gu, will provide four Moa Housing complexes with a total of 1,900 units, including 329 public rental units.

This site has a high proportion of old and substandard buildings, with 73% classified as aged or deteriorated, so residential environment improvement is necessary. With the approval of this review, the site will be rezoned from a Type 2 General Residential Area to a Type 3 General Residential Area, thereby increasing business feasibility. The width of Achasan-ro 44-gil in front of the main gate of Jayang Elementary School will be expanded from 5 meters to 8 meters to create a safer route to school, and the Jangdokgol Park area will also be expanded.

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