Seoul City: "Failure in Sintong Planning Redevelopment Due to Share Splitting and Resident Opposition"

Applying Speculation Prevention Measures Even to Disqualified Bidders... To Provide Opportunities for the Next Public Offering

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] The Seoul Metropolitan Government recently selected a total of 21 sites through the rapid integrated planning (Sintong Planning) redevelopment contest and stated that "the areas that were excluded were due to share splitting and resident opposition." The decision to apply anti-speculation measures to the excluded areas is explained as a way to block additional speculative demand and ultimately provide opportunities in the next contest.

On the 30th, Seoul held a press conference on Sintong Planning redevelopment and reconstruction and made these remarks.

The city initially planned to select one site per autonomous district, totaling 25 areas, for the Sintong Planning redevelopment contest. However, it excluded ▲ Daechung Village in Gangnam-gu due to resident opposition, ▲ Jangchung-dong 2-ga in Jung-gu due to non-compliance with higher-level plans such as district unit plans, and ▲ Jayang 1 and 2 districts in Gwangjin-gu due to share splitting.

Kim Seongbo, Director of the Housing Policy Office of Seoul, said, "In the case of Jangchung-dong 2-ga in Jung-gu, the underlying urban plan limits the height to 16 meters. This condition makes the project unfeasible." He added, "The resident consent rate required for establishing the association is 75%, but 23% of residents opposed it. If the district unit plan is reorganized and resident opposition is reduced, it is possible to prioritize the application of Sintong Planning."

In Gwangjin-gu, Jayang 1 and 2 districts applied, but despite setting September 23 as the rights assessment date, share splitting occurred at a rate of 18% in Jayang 1 district and 13% in Jayang 2 district. Director Kim pointed out, "Although the contest plan was announced on May 26, permits were issued afterward, including after the rights assessment date. These people naturally opposed because they could not obtain pre-sale rights, and the district office chief should have managed this attentively."

In Gangnam-gu’s Daechung Village, zones A, B, C, and D applied, but due to simultaneous promotion of urban complex projects and redevelopment, opinions among residents were divided, leading to exclusion from the candidate sites. Director Kim said, "Original residents who came because they liked detached houses are indifferent, while younger people who came considering investment value want development, so opinions are split. A consensus among the majority of residents is necessary for the area to be eligible for Sintong Planning redevelopment."

Sintong Planning redevelopment will maintain the contest method for the time being. Since the redevelopment threshold has been lowered by the residential maintenance index system, this is a measure to prevent excessive concentration of redevelopment requests by region. The city stated that it does not currently plan any additional contest schedules.