Visit to Villa Reconstruction Site in Onsu-dong, Guro-gu, Seoul
Urging Prompt Passage of the "Special Act on Promotion of Reconstruction and Redevelopment"
"Seeking Ways for the Ministry of Land and Real Estate Price Downward Stabilization"
The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government have agreed to accelerate the promotion of maintenance projects such as reconstruction and redevelopment. In this regard, they expressed hope that the 'Special Act on Promotion of Reconstruction and Redevelopment,' which shifts the policy paradigm of maintenance projects from regulation to support, will promptly pass through the National Assembly.
Minister of Land, Infrastructure and Transport Park Sang-woo (left) and Seoul Mayor Oh Se-hoon are answering questions from reporters after inspecting the Daehung, Seongwon, and Dongjin Villa reconstruction project site in Onsu-dong, Guro-gu, Seoul, on the morning of the 12th. / Photo by Noh Kyung-jo
On the morning of the 12th, Minister of Land, Infrastructure and Transport Park Sang-woo and Seoul Mayor Oh Se-hoon visited the Daehung, Seongwon, and Dongjin Villa reconstruction project site located in Onsu-dong, Guro-gu, Seoul. About a month after the announcement of the '8·8 Housing Supply Expansion Plan,' they visited the reconstruction promotion complex in person to explain the plans of the government and Seoul city and to check if there were any difficulties.
Daehung, Seongwon, and Dongjin Villas are villas with a maximum height of 3 floors, consisting of a total of 741 households (Daehung 244 households, Seongwon 251 households, Dongjin 246 households) that have passed 35 years since completion. The living environment has deteriorated due to decreased insulation performance and aging heating and water pipes, and there was a lack of parking lots and welfare facilities. This site, which is promoting reconstruction, is considering zoning upgrades based on residents' proposals. If the zoning is upgraded, a maximum floor area ratio of 300% will be applied, and the maximum number of floors is expected to increase from the existing 25 floors to 45 floors.
After touring the site, the two emphasized that there should be no issues where excessive reconstruction regulations hinder project progress. Minister Park said, "The effect of the 8·8 measures lies in supplying quality housing where people want it and revitalizing maintenance projects," adding, "I hope the bill passes in the National Assembly as soon as possible." The bill was jointly proposed on the 2nd by Kim Eun-hye, a member of the People Power Party, along with the 'Urban and Residential Environment Maintenance Act.'
Mayor Oh said, "We are working with the Ministry of Land, Infrastructure and Transport to find ways for maintenance projects to contribute to the downward stabilization of real estate prices," adding, "We are considering expanding financial support beyond rapid integrated planning (Shintong Planning), the introduction of electronic voting systems, and expanded integrated reviews." In particular, there is a plan to increase the number of sale housing units in areas with low profitability through the 'Project Profitability Adjustment Coefficient,' scheduled to be implemented this month. Mayor Oh added, "Non-Gangnam areas such as the southwestern region with poor residential environments will benefit," and "We will raise the floor area ratio and lower the public contribution ratio to enable faster project progress."
In response to questions about whether the consecutive record-high price complexes in Seoul indicate a decline in the effect of the 8·8 measures, he said, "At least 3 to 4 months need to pass," and "For areas where record prices continue to appear, we will prepare special measures at that time."
At the residents' meeting, Minister Park and Mayor Oh listened to opinions and promised swift project promotion. Residents expressed concerns about repeated administrative procedures due to changes in maintenance plans. In the case of reconstruction projects, they saw the long project duration and various disputes and delays as major uncertainties.
Minister Park instructed Yoo Byung-tae, president of the Housing and Urban Guarantee Corporation (HUG), to strengthen guarantees for maintenance project costs under the 8·8 measures. He also asked Son Tae-rak, president of the Korea Real Estate Board, to faithfully support consulting on construction contracts and various plans, as well as verification of construction costs. Minister Park said, "We will work to coordinate disagreements arising during the project process with local governments such as Seoul city and resolve difficulties in initial project cost procurement."
Mayor Oh also said, "So far, the establishment of maintenance plans has been accelerated through Shintong Planning," adding, "In the future, we will further increase the speed of housing supply through active city-level interest in the process until completion."
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