First Designation of Four Urban Complex Project Sites Including Jeungsan 4 District

After 9 Months Since 3080+ Measures, 40 Days After Law Passed
Ministry of Land, Infrastructure and Transport to Swiftly Designate Main District Within This Year

Jeungsan 4 District Urban Complex Project Planned Area / Provided by Ministry of Land, Infrastructure and Transport.

[Asia Economy Reporter Jo Gang-wook] The Ministry of Land, Infrastructure and Transport announced on the 27th that four areas?Jeungsan 4 District, Yeonsinnae Station, the east side of Ssangmun Station, and Banghak Station?will be designated as planned districts for the Urban Public Housing Complex Project.

This designation comes nine months after the announcement of the '3080+ Metropolitan Housing Supply Plan' in February and about 40 days after the enforcement of the Public Housing Special Act introducing the Urban Complex Project on the 21st of last month.

The four areas designated as planned districts, including Jeungsan 4 District, will proceed with the official district designation process after a 14-day public opinion hearing and review by the Central Urban Planning Committee.

The Ministry explained that Jeungsan 4 District, the first among the Urban Complex Projects to be designated as a planned district, received strong support from residents, securing more than two-thirds consent required for district designation faster than other candidate sites. The three station areas also showed very high resident consent, so it is expected that the official district designation will be completed swiftly within the year.

Currently, the resident consent rates are 75% for Jeungsan 4 District, 67% for Yeonsinnae Station, 81% for the east side of Ssangmun Station, and 75% for Banghak Station, according to the Ministry.

The Ministry plans to complete the official district designation for these four areas within this year.

Considering that the designation of redevelopment zones in existing redevelopment projects takes an average of about five years, the Ministry explained that this rapid progress is unprecedented for complex urban housing projects with complicated stakeholder interests.

For the four candidate sites, the estimated housing prices supplied as in-kind compensation to residents are 480 million to 490 million KRW for 59㎡ units and 610 million to 640 million KRW for 84㎡ units.

In this case, the average burden per household was analyzed to be between 80 million and 130 million KRW, which the Ministry explained is about 30% lower than that of private redevelopment projects in the respective areas.

Additionally, the Ministry plans to supply all public housing units offered to the general public under the price ceiling system to ensure affordable prices.

According to estimates of the general sale prices for the four candidate sites, the average price per 3.3㎡ is analyzed to be between 19.31 million and 22.57 million KRW, about 60% of the nearby market prices, the Ministry stated.

Nam Young-woo, Head of the Public Housing Promotion Team, said, “The designation of the four planned districts, including Jeungsan 4 District, marks a significant step not only for the Urban Public Housing Complex Project but also for the full-scale implementation of the 3080+ plan.” He added, “We will complete the official district designation for these four areas within the year and designate other candidate sites with high resident support as planned districts within the year to ensure the smooth progress of the 3080+ project.”

Meanwhile, the Ministry confirmed a total of 10 suspicious illegal real estate transactions in the four districts, including Jeungsan 4, based on actual transaction investigations, and plans to notify related agencies such as the National Tax Service, Financial Services Commission, and relevant local governments.