[Real Estate AtoZ] "Consideration of Establishing Opposition Rate" for Selection of 1st Phase New Town Pilot District

"Consideration of Introducing Opposition Rate as a Deduction Item"
Consent Rates Exceed 80% in Bundang Jeongja 1-ro and Samsung Hanshin
Experts Question Effectiveness

"There are quite a few people opposing reconstruction. Residents who have lived in the 1st generation new towns for a long time dislike moving around. Construction costs are rising, and with the Reconstruction Excess Profit Recovery System (재초환), the benefits of reconstruction are not significant. Moreover, since the general election, regulatory easing has become more difficult," said a resident of an apartment in the 1st generation new town A.

View of reconstruction construction complexes in Seoul city.
[Photo by Yonhap News]

If there are many people like Mr. A opposing redevelopment projects, it may become difficult to select integrated reconstruction and redevelopment pilot districts under the Special Act on Maintenance and Support for Aging Planned Cities (Special Act on Aging Planned Cities).

On the 29th, the Ministry of Land, Infrastructure and Transport (MOLIT) announced that it is considering introducing a 'resident opposition rate' as a selection criterion for pilot districts under the Special Act, which took effect on the 27th. This is to enhance the discriminative power in selecting pilot districts by introducing the opposition rate as a deduction factor when reconstruction and redevelopment consent rates are similar. The scale and criteria for pilot districts will be announced next month.

MOLIT: "Considering introduction of opposition rate when consent rates are similar... but nothing finalized yet"

Choi Byung-gil, head of the Urban Maintenance Planning Preparation Team at MOLIT, said, "Looking at Seoul's rapid integrated planning, resident opposition rates are applied as a deduction factor," adding, "We are reviewing a deduction system based on opposition rates to prepare for cases of strong opposition." However, he added, "We will concretize this through consultations with local governments, and nothing has been finalized yet."

Currently, the consent rates of reconstruction complexes in Bundang-gu are similar. According to each reconstruction promotion committee, the resident consent rate for the Jeongja 1-ro complex in Bundang is 84.48%, the consent rate for the pilot complex Samsung Hanshin Apartments is 81.30%, and the consent rate for the Sangnok Village Life complex is 80%. Additionally, the consent rates for Ilsan Gangchon 1 and 2, and Baekma 1 and 2 complexes have also exceeded 80%. When consent rates are similar like this, MOLIT's judgment is to examine the opposition rates and use them as deduction factors.

Park Soon-shin, CEO of Inner City, said, "Even if the consent rate is high, active opposition by a minority can cause significant conflicts within the complex. Especially, people who have lived in the 1st generation new towns for a long time may actively oppose even if the number of opponents is small due to moving issues," adding, "The government's consideration of introducing an opposition rate should take such situations into account."

Banner within the apartment complex. The above photo is unrelated to the article.
[Photo by Yonhap News]

"Even if opposition rate is introduced, difficulty in opposition consent forms reduces effectiveness"

There are also criticisms that introducing an opposition rate will not significantly enhance the discriminative power in selecting pilot districts. An official from the redevelopment industry said, "In situations where the consent rate is already high, the promotion committee may ask opponents not to submit opposition consent forms. Also, opponents may find it difficult to strongly oppose matters that the majority agree on." He continued, "Even if the opposition rate is introduced, the content of opposition consent forms is difficult, so forms may be submitted without properly filling them out," adding, "If opposition consent forms become invalid in such cases, introducing the opposition rate is meaningless."

MOLIT plans to present a standard plan that can be utilized according to the conditions of each local government. The most important criterion at that time will be the resident consent rate. If the opposition rate is introduced, both consent and opposition rates will be considered simultaneously. In addition, MOLIT said it will comprehensively consider various criteria such as the scale of integrated maintenance and the number of parking spaces per household.

Meanwhile, the Special Act on Aging Planned Cities, which took effect on the 27th, supports integrated maintenance of multiple complexes in aging cities such as the 1st generation new towns. It includes provisions such as exemption from safety inspections and an increase in floor area ratio (up to 150% of the legal limit).

MOLIT will disclose the scale and criteria for pilot district selection next month. The estimated scale of pilot districts is about 9,400 households in Bundang, 6,300 households in Ilsan, and 4,100 households in Pyeongchon. The government has set the goal of "first groundbreaking in 2027 and move-in by 2030" while promoting maintenance projects in aging planned cities.