First Round Results: 14 Garojutaek and 2 Jayeoljutaek Finalized
Second Round Open from 23rd for Seoul Metropolitan Area and 5 Major Metropolitan Cities
Sixteen locations in the Seoul Geumcheon District, Suwon in Gyeonggi Province, and other metropolitan areas have been selected as candidates for public participation-type street and autonomous housing maintenance projects. Approximately 2,800 housing units are expected to be supplied in these areas.
The Ministry of Land, Infrastructure and Transport announced that, as a result of the first public contest for the 'Public Participation-type Street and Autonomous Housing Maintenance Project' conducted jointly with the Korea Land and Housing Corporation (LH), a total of 16 out of 45 metropolitan area locations submitted were finally selected as public-private joint implementation project districts, with about 2,800 housing units to be supplied.
As street housing maintenance project sites, 14 locations including Geumcheon and Gangdong Districts in Seoul, Gyeyang District in Incheon, and Suwon City in Gyeonggi Province were selected. This project involves small-scale maintenance of aging residential areas surrounded by 6-meter-wide roads, where old and poor-quality buildings are concentrated, while maintaining the existing streets and maintenance infrastructure.
Two locations, Myeonmok-dong in Jungnang District, Seoul, and Gyesan-dong in Gyeyang District, Incheon, were designated as autonomous housing maintenance project sites. This project is carried out by landowners of single-family homes (fewer than 10 units) or multi-family and row houses (fewer than 20 units) forming resident consensus groups to renovate their homes independently.
Once a joint implementation agreement is signed between LH and the association in the finally selected project sites, the project is expected to become visible starting early next year.
When LH participates as a joint project implementer in street and autonomous housing maintenance projects, benefits such as improved project feasibility through floor area ratio relaxation, stable project cost financing, pre-purchase agreements for sale housing, and resettlement support can be received.
In particular, construction is possible up to the legal maximum floor area ratio under the National Land Planning Act, and the projects are exempt from the application of the sale price ceiling system. Additionally, through the Housing and Urban Guarantee Corporation (HUG), loans of up to 90% of the total project cost can be obtained at a low interest rate of 1.2% per annum.
Pre-purchase agreements can be made for 30% of general sale housing and at least 50% of newly built houses in autonomous housing maintenance projects, reducing the risk of unsold units during project promotion. Relocation costs can also be supported by HUG up to KRW 300 million (interest rate 1.2% per annum), covering 70% of the asset value before maintenance or 70% of the average regional jeonse (long-term deposit) price.
When promoting public street and autonomous housing maintenance projects within small-scale housing maintenance management areas, benefits such as relaxation of street district requirements or upgrading of zoning districts can also be received.
The Ministry of Land, Infrastructure and Transport and LH will expand the project target areas from the metropolitan area to the five major metropolitan cities and conduct the second public contest for public street and autonomous housing maintenance projects from the 23rd of this month to February 4th of next year. The final selection of project districts is expected to be completed in the second half of next year after site surveys, project feasibility reviews, and resident consultations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
