Applies to 430,000 Parcels and 88.7㎦
Expected to Supply 10,000 Additional Households
1 to 2 Extra Units Per Project
Ordinance Revision Targeted for May
From now on, small-scale buildings such as multi-family houses and villas built in Type 2 and Type 3 general residential areas will be allowed to be constructed approximately one floor higher. The Seoul Metropolitan Government plans to temporarily relax the floor area ratio for small-scale buildings to achieve the effect of supplying 10,000 households over three years.
On the 17th, Seoul Mayor Oh Se-hoon visited a small-scale reconstruction site in the 108-1 area of Oryu-dong, Guro-gu, the first target site for Regulatory Deregulation Plan No. 33. This project site is in a Type 2 general residential area, where residents faced heavy burdens due to low floor area ratios and high estimated contributions.
At this location, the floor area ratio is expected to be relaxed from the existing 200% to 250% under Regulatory Deregulation Plan No. 33. Accordingly, improvements in project feasibility are anticipated due to reduced contributions per household and an increase in the number of units for sale.
Regulatory Deregulation Plan No. 33 focuses on relaxing the floor area ratio for small-scale buildings in Type 2 and Type 3 general residential areas. Until now, stricter local ordinances than national laws have been applied to small-scale buildings in these areas, restricting private sector construction investment. Therefore, the city decided to temporarily relax the floor area ratio for three years: from 200% to 250% in Type 2 general residential areas, and from 250% to 300% in Type 3 general residential areas.
The deregulation applies to projects requiring building permits under the Building Act and small-scale housing maintenance projects, including △small-scale reconstruction (sites under 10,000㎡) △small-scale redevelopment (sites under 5,000㎡) △autonomous housing maintenance projects (fewer than 36 households). Approximately 88.7㎦ (430,000 parcels, 300,000 buildings) in Seoul will be subject to this deregulation.
The deregulation is expected to have a positive effect on housing supply. When new construction or extensions occur in Type 2 and 3 general residential areas under the Building Act, an average of 1 to 2 additional units per project is expected. For example, assuming a building coverage ratio of 60%, in Type 2 general residential areas, buildings currently 3 to 4 stories high can be built up to 4 to 5 stories. In Type 3 general residential areas, with a building coverage ratio of 50%, the height limit of 4 to 5 stories can be increased to 5 to 6 stories.
The city anticipates an additional supply effect of 10,000 households over three years through deregulation. If the floor area ratio of 2,620 small-scale reconstruction sites is relaxed by up to 50%, an additional 9 units per site based on a 59㎡ exclusive area are expected. Autonomous housing maintenance projects are expected to increase by 20 units (30㎡ exclusive area) per site. For non-residential facilities such as commercial housing and office buildings, a 10-25% increase in floor area is also expected.
The city will also provide free feasibility analysis support for small-scale reconstruction hopeful project sites. The city plans to assist residents in making prompt decisions by comprehensively reviewing the legally permitted maximum floor area ratio plans and the possibility of upgrading zoning districts.
Furthermore, the city aims to revise ordinances by May to enable early implementation of these measures. Since building permits do not require separate management plan changes, construction is expected to begin from June.
A Seoul city official stated, "We expect improvements in project conditions for areas where residential environments were needed but maintenance was difficult," and added, "The activation of private sector construction investment through new small-scale building construction is expected to revitalize the stagnant construction industry."
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