Transition Team: "Reconstruction of 1st Generation New Towns to Be Reviewed as a Mid- to Long-Term National Agenda"

[Image source=Yonhap News]

[Asia Economy Reporter Bae Kyunghwan] The Presidential Transition Committee (PTC) has officially stated that it is reviewing the reconstruction projects of the first-generation new towns as a mid- to long-term national agenda. This is interpreted as an attempt to slow down amid concerns that the real estate market is becoming unstable due to signals of deregulation on reconstruction, including the campaign promises of President-elect Yoon Seok-yeol.

On the 25th, Won Il-hee, the senior deputy spokesperson of the PTC, said at a briefing in Tongui-dong, Jongno-gu, "The reconstruction issue of the first-generation new towns is a matter being reviewed as a mid- to long-term task by the real estate task force (TF)." Earlier, President-elect Yoon promised a total supply of 2.5 million housing units. Of these, 500,000 units will be led by the public sector, and 2 million units by the private sector. An additional 400,000 new housing units will be supplied in Seoul, and a total of 1.3 million units will be released across the entire metropolitan area, including the first-generation new towns (Bundang, Ilsan, Jungdong, Pyeongchon, Sanbon).

The PTC and the government are reportedly considering raising the floor area ratio (FAR) of residential areas in the new towns to the legal maximum (up to 300%), and in some areas such as station zones, upgrading zoning to quasi-residential areas or higher to increase the FAR up to 500%.

The 'Special Act to Promote the Redevelopment of First-generation New Towns,' which President-elect Yoon pledged, has also been proposed. It includes contents such as simplifying approval procedures, easing regulations on safety inspection systems, relaxing the reconstruction excess profit recovery system, changing land use, and increasing the floor area ratio. Additional discussions are expected to take place soon in the National Assembly.

However, regarding reports that the PTC decided to abandon the pledge to exempt detailed safety inspections for apartments completed 30 years ago, the committee stated that it has not reviewed such a matter. Deputy spokesperson Won explained, "While real estate-related pledges are a priority for review, the abandonment of reconstruction-related pledges has not been considered."