Small-scale Complexes in Seoul Can Receive Free Feasibility Assessments for Reconstruction Projects

Seoul City Accepts Applications for 'Small-scale Reconstruction Feasibility Analysis Service' Until July 4
Targeting Areas Under 10,000㎡, Over 60% Aged Buildings, and Fewer Than 200 Households

Small-scale apartment complexes in Seoul will be able to assess the profitability of reconstruction projects for free.

On the 11th, the Seoul Metropolitan Government announced that it will accept applications for the ‘Small-scale Reconstruction Feasibility Analysis Service’ until the 3rd of next month. ‘Small-scale reconstruction’ refers to projects that rebuild multi-family housing on a small scale in areas with good maintenance infrastructure. The service targets housing complexes that meet the following criteria: ▲project area less than 10,000㎡, ▲60% or more of old or deteriorated buildings, ▲fewer than 200 existing housing units.

In particular, the proportion requirement for old and deteriorated buildings was relaxed earlier this year from the previous ‘two-thirds or more’ to ‘60% or more,’ which is expected to increase the number of eligible complexes for the service. Complexes that had difficulty proceeding with projects due to not meeting the aging criteria can now review project feasibility through this service.

The photo is not related to the specific content of the article. It shows the apartment complexes in Nowon and Dobong districts as seen from Buk Seoul Dream Forest in Gangbuk-gu, Seoul, on the morning of January 14. [Image source=Yonhap News]

The city will comprehensively review the legal maximum floor area ratio plan through rental housing plans, the possibility of upgrading zoning districts, and other factors for the feasibility analysis sites to derive the optimal architectural plan. Additionally, by evaluating asset values before and after the project, the city plans to provide data that enables owners and residents to make quick decisions.

Next month, 15 sites will be selected to conduct on-site surveys, gather residents’ opinions, prepare architectural plans, and perform appraisals by January next year. The city will predict project profitability and calculate estimated contributions to provide to applicants.

Last year, the city also conducted feasibility analyses for 10 sites to support residents’ prompt decision-making. In 2021 and 2022, 15 and 12 sites were supported respectively.

Housing complexes wishing to apply for the feasibility analysis must obtain consent from more than 10% of landowners and other owners, complete the application form, and submit it to the relevant district office where the project site is located.

Han Byung-yong, Director of the Seoul Housing Policy Office, said, “Several complexes that hesitated to proceed with reconstruction projects due to mixed new and old buildings or small project size and number of households are now receiving the ‘Feasibility Analysis Service’ and actively moving forward with their projects. We will continue to provide generous support not only for feasibility analysis but also for the overall revitalization of small-scale reconstruction projects.”