[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will supply a total of about 7,400 housing units across four locations, including Gwangmyeong 7 District, Goyang Wondang 6 and 7 Districts, and Hwaseong Jinan 1-2 District.
On the 16th, Gyeonggi Province announced the confirmation of the first public redevelopment candidate sites as ▲Gwangmyeong 7 District (Gwangmyeong-dong, 93,830㎡) ▲Goyang Wondang 6 and 7 Districts (Seongsa-dong, Deogyang-gu, Goyang City, 158,917㎡) ▲Hwaseong Jinan 1-2 District (Jinan-dong, Hwaseong City, 11,619㎡).
Public redevelopment is a redevelopment project promoted with the participation of public institutions such as Gyeonggi Housing and Urban Corporation (GH). It emerged as a key housing policy in the 'Plan to Strengthen the Housing Supply Base in the Metropolitan Area' announced by the government in May last year.
Key features include raising the floor area ratio up to 1.2 times the legal limit to reduce the burden on association members, and an integrated review system for construction and transportation to shorten the project period.
The project period (from designation of the maintenance area to completion) is expected to be shortened by more than half from the existing 13 years to 6-7 years. While the floor area ratio is increased, 20-50% of the additional capacity is allocated to public rental supply as a contribution to the public.
The number of units to be supplied upon project completion is 7,380. The province plans to supply more than 700 units of 'Basic Housing,' a public housing model by Lee Jae-myung, accounting for 10-20% of the 7,380 units.
GH, the preliminary project implementer, plans to hold on-site briefings for residents of the candidate sites to explain the main contents and expected effects of public redevelopment. In particular, it will collect residents' opinions and proceed with the establishment of the maintenance plan (draft) and the consent procedure for designation of the public implementer within the year.
The province will also prepare measures to prevent speculation following the designation of public redevelopment districts.
Due to concerns about speculative demand inflow for acquiring pre-sale rights and rapid land price increases, the province will designate three areas?Goyang Wondang 6 and 7 Districts and Hwaseong Jinan 1-2 District?as land transaction permission zones from the 21st of this month until July 20, 2024.
Gwangmyeong 7 District has already been designated as a land transaction permission zone by the Minister of Land, Infrastructure and Transport from March 2, 2023, to March 1, 2023, in accordance with the 3rd New Town policy.
In land transaction permission zones, transactions of housing, commercial buildings, and land above a certain scale require permission from the mayor, county, or district office head. Entering into land transaction contracts without permission is punishable by imprisonment of up to two years or a fine of up to 30% of the land price. In particular, residential land is restricted from sale or lease for two years and must be used only for actual residence.
Additionally, to block speculative forces entering to acquire pre-sale rights, the province announced the 16th, the day of the public redevelopment project candidate site announcement, as the reference date for calculating the right to purchase buildings within the candidate sites.
If ownership is acquired after the reference date through new construction or 'share splitting,' the housing pre-sale rights will not be recognized. This prevents share splitting and also suppresses additional contributions from association members.
The province and GH have put effort into preparing to introduce Basic Housing into the public redevelopment project from the preparation stage. In December last year, the province and GH independently solicited candidate sites, and 10 aging areas with more than 10% consent from local residents participated in the solicitation.
Subsequently, GH held the 'Gyeonggi Province Public Redevelopment Candidate Site Selection Committee,' composed of Gyeonggi Province, the Ministry of Land, Infrastructure and Transport, and urban planning experts, and comprehensively reviewed urgency, residents and the city's urban planning direction, and housing supply effects to select four final candidate sites. GH plans to continue discovering additional candidate sites for public maintenance projects such as public redevelopment.
Gyeonggi Province Governor Lee Jae-myung emphasized, "When residents directly promote redevelopment, frequent disputes and lawsuits delay the project and increase association members' contributions, but public redevelopment enables transparent and swift project promotion. Also, by easing the floor area ratio, residents' burdens are reduced, and the additionally secured rental housing will be supplied as Basic Housing, where anyone without a home can live without discrimination, creating an opportunity to eliminate the culture of discrimination against rental housing."
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