Project Implementation Approval Required Within Three Years of Association Establishment
Two-Year Extension Possible with Over 30% Consent
Aiming for Project Implementation Approval by June Next Year
The final piece of the Gajaeul New Town (Reconstruction Promotion District) puzzle, Gajaeul District 7, is set to extend its redevelopment period. The goal is to obtain project implementation approval by next year.
According to the redevelopment industry on April 22, the housing redevelopment association for Gajaeul District 7 is collecting consent forms from landowners (association members) to extend the designation period of the redevelopment district.
This measure is intended to prevent the district from being lifted under the "redevelopment district sunset provision," which allows for the easy cancellation of districts where no progress has been made. The Gajaeul District 7 association received approval for its establishment on August 9, 2022, and will reach the three-year mark this coming August.
The association can extend the designation of the redevelopment district for two years if it obtains consent from 30% of its members or if the necessity of the project for planned improvement of the residential environment is recognized. However, under current law, the extension can only be granted once. If the district is lifted, the association must restart from the very first step of the redevelopment process, which is the designation of the district.
Gajaeul District 7 was designated as a reconstruction promotion district in June 2012. However, due to a sluggish real estate market and opposition from residents, the project made little progress for ten years. The association was only established in 2022, and in November last year, a consortium of GS Engineering & Construction and Hanwha Construction Division was selected as the contractor. However, the association plans to sign the contract with the contractor after reflecting changes such as the number of households, since the design documents were originally created based on the 2012 designation standards.
The association explained that the schedule was delayed due to preparations for changes to the reconstruction promotion plan. A representative of the Gajaeul District 7 association stated, "We plan to collect the consent forms and submit them to the district office before August to secure a two-year extension," adding, "We aim to complete the architectural review and other procedures by the end of this year." The representative also said, "We are preparing to obtain project implementation approval by June next year and expect the project to proceed smoothly."
Once the district office receives the application for extension of the redevelopment district designation, the Seoul Urban Redevelopment Committee will review it. A city official explained, "Requests for extension of redevelopment district designation are not uncommon. The period can be extended due to various variables. If the consent rate is high, this can be reflected positively in the review, and the district office will submit a comprehensive opinion based on the project's progress and preparations, which the committee will then consider in its judgment."
The Gajaeul District 7 project will construct 1,497 residential units (including 209 rental units) in buildings ranging from four basement levels to 36 above-ground floors in the area of 80 Bukgajwa-dong, Seodaemun-gu, Seoul. Gajaeul New Town consists of nine districts; Districts 1 to 6 and District 9 have already completed occupancy, and District 8 (DMC Gajaeul IPark) is scheduled for completion in November this year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
