"Even if selected as a pilot district, project faces difficulties due to contribution fee issues"
"Bundang to establish relocation measures using Ori Station LH office and nearby sites"
"LH housing supply performance: 11,000 units last year → 50,000 units this year"
Han-Jun Lee, President of Korea Land and Housing Corporation (LH), stated at a Ministry of Land, Infrastructure and Transport press briefing held in Sejong City on the 21st, "Even if the first-generation new town pilot districts are selected, there is no place where the projects can properly proceed."
President Lee emphasized, "We need to take a cold look at how many first-generation new town pilot districts will actually see projects progress normally," adding, "Many areas within each new town are raising their hands to participate in integrated reconstruction projects, but ultimately, the issue is economic feasibility." Due to high construction and financial costs, the reconstruction burden fees have increased, making it realistically difficult for association members to bear the costs.
Lee Han-jun, President of Korea Land and Housing Corporation (LH), is speaking at a press briefing held by the Ministry of Land, Infrastructure and Transport in Sejong City on the 21st. Photo by Park Seung-wook
He said, "Relocation measures related to the pilot districts must be planned considering these circumstances," and pointed out, "Among the first-generation new towns, Bundang New Town is the most likely place where projects will proceed." He added, "Relocation measures for places like Bundang must be meticulously prepared."
In the case of Bundang New Town, it was decided to utilize idle land within the new town through consultations with Seongnam City. President Lee explained, "LH has its headquarters near Ori Station, and by changing the use of this building, a significant number of housing units can be supplied," adding, "In addition, relocation plans will be made by utilizing vacant lands such as the nearby Hanaro Mart site and the courthouse site." There is also a plan underway to use housing supplied through urban renewal projects in Seongnam City.
President Lee said, "If the pilot district announcement is made and integrated reconstruction projects proceed in Ilsan New Town, relocation measures can be arranged through the nearby Goyang Changneung 3rd-generation new town." He also added, "For Sanbon New Town, we are reviewing plans to utilize the nearby heavy industry area." He continued, "Since the first-generation new towns were built by LH a long time ago, we will approach the projects with a sense of responsibility to resolve the issues."
LH Housing Construction Performance: 11,000 Units → 50,000 Units
On this day, President Lee also mentioned that LH's housing construction performance has increased. Last year, 11,000 units began construction, but this year the number has risen to 50,000 units. A representative example is the supply volume in Incheon Gyeyang New Town last September.
President Lee said, "Based on the increased construction performance, the supply of 3rd-generation new town units will proceed without delay." Apartments will be supplied in Goyang Changneung in January next year, Hanam Gyosan in February, Bucheon Daejang in March, and Namyangju Wangsuk in May.
He also provided clear standards regarding confusion caused by differences between estimated prices during pre-sale and actual sale prices. President Lee explained, "When pre-sale occurs, the main sale period is specified, and construction cost increases within this period are reflected in the sale price," adding, "However, if the main sale is delayed beyond the scheduled period, LH will bear all the increased construction costs incurred during the postponed period."
According to LH, during the main sale of apartments in Incheon Gyeyang last September, prices rose 17% compared to the pre-sale. Construction costs increased by 18.8% within the main sale notice period and by more than 20% after the notice period. President Lee explained, "This reflects the construction cost increases only within the scheduled main sale period."
President Lee said, "The public are the owners and customers of LH," and added, "LH will fulfill its role to become a public corporation loved by the people."
Meanwhile, LH completed the designation of four districts, including Seoripul District and Daegok Station Area District, where the Ministry of Land, Infrastructure and Transport lifted the greenbelt on the 5th. To accelerate housing supply in these districts, compensation personnel have been proactively deployed to prepare compensation procedures.
Regarding the purchase rental housing aimed at supplying 50,000 units this year, applications were received from private companies for about 170,000 units, and 70,000 units passed the review. President Lee explained that if these companies sign agreements, this year's target can also be achieved.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
