[Square] Finding a Balance Between Expanding Housing Supply and Easing Regulations

Recently, the government proposed policy measures to ease regulations on urban-type residential housing (hereafter Doseong) and officetels. This concretizes the results of previous meetings aimed at reviewing the current status of housing supply and identifying obstacles to private housing supply. Therefore, the main objective of this policy is to expand types of housing supply that can be implemented in the short term.

The policy direction to increase housing supply by including non-apartment types within the city center, such as officetels and Doseong using small-scale project sites, is highly commendable. However, sufficient discussion must precede the practical application of the issues presented this time. This is necessary to prevent side effects such as indiscriminate development during the policy implementation process.

First, in the case of Doseong, it should be kept in mind that various building standards, such as parking requirements, have been relaxed from the outset. If Doseong buildings increase in residential areas while maintaining these conditions, it may result in outcomes that do not align with the formation of a pleasant living environment. The current measure, which relaxes spatial composition up to one-third of the total units, allowing a mix of family-type units and smaller units within the same building, is an example. From the perspective of the residential environment, it would be better if the building consisted only of family-type units, but this has limitations such as parking issues becoming more prominent.

The floor heating standards for residential officetels have been changed several times so far because officetels are considered office facilities. The Seoul City Urban Planning Glossary also defines officetels as “general office facilities under the use classification of the Building Act.”

If there are no restrictions on floor heating in officetels and they are designed with residential floor plans, the practical difference from housing disappears. If the allowable floor heating installation area expands to the same actual size as a 30-pyeong apartment, it goes without saying. In that case, officetels could also be highlighted as a way to circumvent the price ceiling system applied to apartments such as mixed-use residential complexes. This is the same for Doseong, and existing cases can be easily found. Of course, there are differences such as higher maintenance fees and taxes compared to apartments of the same size, but these are not major concerns for developers.

Mandating integrated reviews to shorten the time required for permits and approvals in the housing supply process has both advantages and disadvantages. Depending on the agenda, conducting reviews for architecture, landscape, and traffic all at once can be efficient. Faster reviews are also beneficial for developers.

However, the possibility of side effects caused by integrated reviews cannot be ruled out. Physical time is still needed to reflect the points for improvement raised during the review stage in revised plans. Therefore, if the policy to speed up permits and approvals is viewed differently, it means that the time spent in the project review stage may be insufficient. For example, if the permit period that previously took nine months is shortened to two months, it is difficult to exclude the possibility of hasty reviews. Sometimes, it may even appear as if passing the review is being forced.

Therefore, detailed discussions should precede the mandatory implementation of integrated reviews. It should not be forgotten that regulations must be improved and reduced only for unnecessary matters.

The intention to improve the high-priced housing management system and establish review standards for the price ceiling system to enhance transparency is very desirable. In this regard, the industry is likely to demand reforms that raise prices, but it is important to note that this is difficult to agree with from the perspective of subscription applicants and others. Opposition from some civic groups is also easily anticipated.

It is not easy to quickly resolve these issues related to housing supply. However, exploring various possibilities and attempting diverse approaches is socially necessary. We hope that the steady efforts of policy authorities will contribute to the ultimate goals of expanding housing supply and stabilizing the real estate market.

Eunhyung Lee, Senior Researcher, Korea Institute of Construction Policy

Major Career

① Numerous advisory roles for public institutions (real estate, private investment projects, etc.)

② Member of multiple architecture, landscape, and urban planning committees

③ Member of multiple urban, public, and design committees

④ Honorary subcontractor ombudsman and private expert auditor

⑤ Test committee member for Korea Industrial Human Resources Corporation, etc.