[Asia Economy Reporter Yuri Kim] Starting next week, the official public redevelopment pilot project site recruitment will begin. With about 20 districts showing interest, and some districts having already submitted letters of intent, competition for the final selection of pilot project sites is expected to be fierce.
According to the maintenance industry on the 18th, about 20 districts, including those previously deregulated from maintenance zones, districts with stalled projects, and districts with limited additional contribution capacity, have shown interest in the public redevelopment pilot project site recruitment, which will take place from the 21st to November 4th. Among them, four districts?Seongbuk 3 District and Hannam 1 District, which were deregulated from maintenance zones, as well as Yangpyeong 14 District and Heukseok 2 District?have already submitted letters of intent. Additionally, districts such as Seongbuk 5 District, Gangbuk 5 District, Mia 11 District, Cheongnyangni 6 District, Dapsimni 17 District, Jangwi 8, 9, 11, and 12 Districts, Heukseok 1 District, Sinjeong 1-5 District, Dongsomun 2 District, and the area around 241-19 Cheonho-dong, which attended the prior project briefing session, have shown high interest and are expected to participate in the recruitment within the period.
Residents in these areas cited the simplification of permits and approvals and the shortening of project duration as strengths of public redevelopment. The project period, which typically takes over 10 years, is expected to be reduced to within 5 years. Public redevelopment promotion zones are designated as 'Housing Supply Activation Districts,' allowing a floor area ratio 20% higher than the legal limit, exemption from the price ceiling system on sale prices, and various supports such as project cost loans.
However, half of the supply excluding the portion allocated to union members must be provided as public rental housing or income-generating jeonse (long-term lease) housing. Resale is restricted for up to 10 years, and a residence obligation of up to 5 years is imposed.
The recruitment targets for pilot project sites include redevelopment zones, residential environment improvement project zones, and districts preparing for maintenance zone designation within Seoul. Redevelopment deregulated areas can also participate. For single implementation, consent from more than two-thirds of residents is required, and for joint implementation, consent from more than half of residents is necessary. However, areas where alternative projects such as urban regeneration projects or managed residential environment projects are underway, or areas requiring management for historical and cultural preservation, are excluded from consideration for public redevelopment. Changsin-Sungin and Guro 1 District, which preferred public redevelopment over urban regeneration, were excluded from the target.
The government has also prepared measures to prevent speculation such as 'splitting housing shares.' The date for calculating union members' rights to housing allocation is set as the announcement date of the recruitment, the 21st; those who acquire housing shares after this date will not be eligible for union member allocation rights.
Autonomous districts that receive applications will evaluate the resident consent rate and maintenance zone designation requirements of the respective districts and recommend them to Seoul City. Seoul City plans to establish a rough plan through Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH), and finalize the selection of candidate sites through the joint 'Candidate Site Selection Committee' of the Ministry of Land, Infrastructure and Transport and Seoul City. The government plans to supply 40,000 housing units in urban areas through public redevelopment.
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