[8·4 Supply Measures] Renovation of Aging Public Rentals... Over 5,000 Additional Units Supplied in Urban Areas

Utilizing Vacant and Idle Spaces to Supply 2,000 Units
Institutional Improvements Including Relaxation of Urban Planning Standards

Minister of Land, Infrastructure and Transport Kim Hyun-mi is briefing on April 4 at the Government Seoul Office in Jongno-gu, Seoul, about plans to expand housing supply in the Seoul metropolitan area and other parts of the metropolitan region. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Jiwon] More than 5,000 housing units will be supplied through deregulation in Seoul's urban areas near subway stations.

According to the government's housing supply expansion plan announced on the 4th, a pilot project for the redevelopment of aging public rental housing will be promoted first, supplying 3,000 units initially. The aging public rental housing will be developed as complexes where various groups such as newlyweds and young people live together.

Some of these units will be released as public sale housing. To prevent displacement of existing residents, nearby public rental and purchased rental vacancies will be prioritized and the project will be promoted as a cyclical redevelopment project.

Additionally, 2,000 units will be supplied by utilizing vacant and idle spaces. Private developers will also be supported to convert vacant offices and commercial spaces into residential use and supply them as private rental housing. Previously, only entities like the Korea Land and Housing Corporation (LH) could participate.

In such cases, support will be provided for remodeling cost loans and exemption from additional parking lot installation. However, to secure public interest and manage traffic congestion, requirements such as mandatory rental periods and restrictions on vehicle-owning tenants will be applied.

Urban planning standards will also be relaxed. The mixed-use development district unit plan, applicable in semi-residential and commercial areas near subway stations, will be expanded to residential areas near subway stations, and the floor area ratio will be relaxed up to a maximum of 700%.

To foster diverse residential spaces in urban areas, the minimum location regulation zone system, which minimizes various urban regulations, will be improved and revitalized. Two additional sites for cyclical redevelopment projects in semi-industrial areas will be discovered.

Furthermore, the move-in requirements for public rental housing that has remained vacant for more than six months will be relaxed to rent to homeless people urgently needing housing. Residents will be able to live there for at least four years.

Currently, there are about 900 long-term vacant public rental housing units in Seoul. The move-in requirements will be lowered from 50-100% of the average monthly urban worker income to 150% or less (6.57 million KRW for two persons). Asset requirements remain the same.

A pilot introduction of equity accumulation-type public sale housing will be implemented among the public sale units to support first-time homebuyers and other homeless real demanders in securing their own homes.