Residents of Jeungsan 4 Demand More Mid-to-Large Apartments... LH Promises to Supply Over 70%

Among 4,112 Households, 3,272 Are 74㎡ or Smaller... Residents Protest
LH: "Will Increase Supply of Medium to Large Units to Over 70% of Total Sale Housing"
Residents Divided on Contribution Fees... "Underestimated and Unrealistic"

Candidate site for the Urban Public Housing Complex Project in Jeungsan 4 District, Eunpyeong-gu, Seoul, on the 30th. Photo by Jin-Hyung Kang aymsdream@

[Asia Economy Reporter Ryu Tae-min] The development plan and estimated sale prices for the first urban public housing complex project site, Jeungsan 4 District, promoted by the government, have been disclosed, but reactions indicate that it falls short of initial expectations. Although an agreement was reached between Korea Land and Housing Corporation (LH) and residents to guarantee as many large and medium-sized units over 84㎡?which are highly preferred by residents?as possible, this was omitted from the recent briefing.

According to the maintenance industry on the 29th, dissatisfaction is emerging among local residents regarding the residents' briefing held the previous day for the Jeungsan 4 District urban public housing complex project in Eunpyeong-gu, Seoul. According to the briefing, LH announced plans to build a total of 4,112 households in this district by applying a floor area ratio of 295%. Currently, the average floor area ratio in Jeungsan 4 District is 188%. By exclusive area, the composition is ▲36㎡ 311 units ▲51㎡ 311 units ▲59㎡ 1,980 units ▲74㎡ 670 units ▲84㎡ 840 units. Excluding the 840 units, 3,272 units (79.5%) of the total households consist only of small and medium-sized units.

Park Hong-dae, the resident representative of Jeungsan 4 District, said, “There was a prior agreement to supply more than 70% of medium and large apartments in the 40-pyeong range, which are highly preferred by residents, but this was suddenly omitted from the briefing,” adding, “Because the agreed content was not properly reflected, dissatisfaction is arising among residents.”

Large units exceeding 84㎡ (exclusive area) are regarded in the industry as a symbol of luxury apartments. Moreover, since most of the previously supplied units are small and medium-sized under 84㎡, their rarity is also high.

Regarding this, LH stated its position to actively accept residents' demands. LH said, “The housing supply plan may be changed through future consultations with residents,” and “We will provide more than 70% of the sale housing units as medium and large-sized units reflecting residents' demands.” In the urban public housing complex project, about 10% each of public rental and public ownership housing are included, with the remainder composed of sale housing. In the case of Jeungsan 4 District, there are 3,288 sale housing units.

Regarding the estimated contribution fees disclosed that day, both sides presented differing views. LH proposed the sale price (priority supply amount) for existing landowners in Jeungsan 4 District at 620 million KRW for 84㎡ units. Assuming a landowner with a land share of 33㎡ (based on a registered asset value of 349 million KRW), the estimated contribution fee is 271 million KRW.

In response, the residents expressed dissatisfaction, stating, “In our own appraisal conducted under the same criteria, the contribution fee was estimated to be below 220 million KRW.” They also raised concerns that since most housing units in the district have land shares of about 7 to 8 pyeong, but LH’s contribution fee calculation was based on 10 pyeong, the actual resident contribution fee might be higher.

Meanwhile, the government plans to hold second project briefings early next month at Yeonsinnae Station, Banghak Station, and the east side of Ssangmun Station. Jeungsan 4 District is scheduled to be designated as a complex project district by October and will begin full-scale project implementation.

After designation, projects that receive consent from more than two-thirds of residents will proceed with contractor selection and land acquisition procedures. The government aims to complete resident move-ins within 4 to 5 years for the respective project sites.