[8·4 Supply Measures] Up to 70% of Increased Floor Area Ratio from High-Density Development to Be Donated

500-Household Complex Expanded to 1,000 Households
General Sale Units Increased from 50 to 250
250 Units Must Be Donated
Height Limit Raised from 35 to 50 Floors
Donated Units to Be Supplied to Youth and Others

[Asia Economy Reporter Donghyun Choi] The core of the housing supply expansion plan announced by the government on the 4th is the introduction of 'public participation high-density reconstruction.' When public entities such as Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH) participate in reconstruction, the current floor area ratio (FAR) limit of 250% for Type 3 residential areas under Seoul city ordinances can be increased up to 500%, which is the level of quasi-residential areas. For example, if a 500-unit complex applies a 300% FAR, only 600 units can be built, but if increased to 500%, up to 1,000 units can be constructed. This means the number of households can be doubled through reconstruction. In this case, the floor limit of residential areas, currently capped at 35 floors, will also be allowed up to a maximum of 50 floors. The government plans to supply 50,000 households in Seoul by strengthening the public nature of reconstruction through this method.

However, 50-70% of the increased FAR will be recovered through donation in kind. When applying a 300% FAR, the complex of 500 units only needed to donate about 50 rental units, but if choosing high-density reconstruction, the association will have to donate 250 housing units. Instead, the donation in kind will be mixed half and half between rental and sale units. Detailed standards will be prepared by Seoul city by applying an inverse proportion between the net increase in housing scale and the donation rate. The housing units received through donation in high-density reconstruction will be allocated more than half to long-term public rental and homeless households, and the remainder will be used for public sales targeting newlyweds and youth.

The public participation types are divided into 'public management method,' where the public supports financing and design, and 'equity participation method,' where shares are shared with the association. Associations wishing to participate can choose.

To maximize residential space, the current upper limit of 90% for residential ratio in quasi-residential areas and the mandatory park installation regulation will also be relaxed.

Along with this, more than 20,000 households will be supplied through revitalizing public redevelopment in planned and canceled maintenance districts. The intention is to allow public redevelopment even in areas that need residential environment maintenance but have not yet been designated as maintenance districts. Currently, there are 176 places in Seoul that were designated as maintenance districts such as New Town but were canceled due to project delays and other reasons. Among these, 82% (145 places) are located in northern districts such as Nowon, Dobong, and Gangbuk. A government official explained, "LH and SH will participate as public implementers and support the rapid promotion of redevelopment projects by providing incentives."