Selection of 3rd Phase Sites for Urban Public Housing Complex Project
Two Locations in Daegu, Two in Busan... First Inclusion of Regional Metropolitan Cities
Seoul Jeungsan 4 District Previously Selected, Resident Consent Secured
[Asia Economy Reporter Moon Jiwon] On the 12th, the government confirmed a total of four sites as the 3rd pilot project candidates for the Urban Public Housing Complex Project: two in Daegu and two in Busan. This is the first time that major provincial cities, rather than Seoul, have been included among the urban complex project candidates, which is one of the core housing supply measures of the 2·4 Plan.
The Ministry of Land, Infrastructure and Transport announced on the 12th that among the 20 urban public housing complex project candidates proposed by Daegu and Busan, one site each in Nam-gu and Dalseo-gu in Daegu and two sites in Busanjin-gu, Busan, were selected. All are low-rise residential areas, and if the projects proceed normally, about 10,600 housing units will be supplied.
The urban public housing complex development project is a plan to expand housing supply by high-density development of downtown areas such as underdeveloped and low-density developed station areas, semi-industrial zones, and low-rise residential areas.
All the selected areas this time have more than 50% of buildings aged over 20 years. The low-rise residential area in Bongdeok-dong, Nam-gu, Daegu (2,605 households), located near the US military base Camp George, will have its infrastructure improved and an eco-friendly complex created through this project.
The low-rise residential area in Gamsam-dong near the new city hall site in Dalseo-gu, Daegu (4,172 households), is expected to become a regional landmark linked to the construction of the Daegu new city hall. In the case of the low-rise residential area in Jeonpo-dong, Busanjin-gu, Busan (2,525 households), formerly Jeonpo 3 District, it will be developed into a residential area with excellent downtown accessibility and strengthened hub functions.
According to the Ministry of Land, the four candidate sites are expected to have an average floor area ratio increase of 65 percentage points when promoted as public developments compared to private developments. The number of supplied units will also increase by about 727 units (38.1%). Accordingly, the sale price is estimated to be on average 74.0% of the market price, and the landowners’ profit rate is expected to improve by an average of 13.9 percentage points.
Meanwhile, among the previously selected candidate sites, the first project site that has secured the resident consent required for full project promotion has emerged.
According to the Ministry of Land, the low-rise residential project site in Jeungsan 4 District, Eunpyeong-gu, Seoul, has obtained consent from more than two-thirds of residents, allowing the project to proceed in earnest. The Ministry had previously selected a total of 34 urban public housing complex development candidate sites, including the 1st candidates on March 31 and the 2nd candidates on April 14.
While designing the project, the government designated the area as a preliminary district with consent from more than 10% of residents, and thereafter, within one year, consent from more than two-thirds of landowners (at least half by area) is required to confirm the project through designation as the main district. Jeungsan 4 District, included in the first selection on March 31, met the resident consent requirement in less than two months.
Jeungsan 4 District covers an area of 166,022㎡ and is expected to supply a total of 4,139 households. It is a former New Town deregulated area, close to Jeungsan station area, and has nearby elementary and middle schools, making it a high-demand development area.
Including Jeungsan 4 District, six sites have secured the 10% consent required for preliminary district designation. These include the station area projects on the east side of Ssangmun Station in Dobong-gu, the low-rise residential area near Ssangmun 1-dong and Duksung Women’s University, Yeongdeungpo Singil 15 District, near Bulgwang Neighborhood Park in Eunpyeong-gu, and Susaek 14 District.
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