Only Two Appraisers Recommended by the Project Operator and Landowners Can Participate
Consent Forms Required from Owners of at Least Two-Thirds of Land Area and a Majority of All Landowners
The Seoul Metropolitan Government will streamline the process for recommending appraisers for public interest projects implemented by the Seoul Housing and Communities Corporation (SH Corporation) in order to accelerate the pace of housing supply.
The government announced the release of the Greenbelt (development-restricted area) within the metropolitan area, uncovering new housing sites totaling 80,000 units, with 50,000 units this year and 30,000 units next year. The photo shows the development-restricted area in Naegok-dong, Seocho-gu, Seoul, which is a strong candidate for Greenbelt release as of the 9th. Photo by Yongjun Cho jun21@
On July 7, the city announced the full implementation of Regulatory Reform Proposal No. 68, "Improvement of Appraiser Recommendation Methods for Public Interest Projects." This reform applies to projects carried out by SH Corporation.
Currently, compensation for land subject to public interest projects is determined by three appraisers, each recommended by the project operator, the landowner, and the city or province. When SH Corporation, a public company under the Seoul Metropolitan Government, serves as the project operator, there has been persistent distrust among landowners due to the perception that the city and SH Corporation are considered the same entity, leading to the misunderstanding that the city is recommending two appraisers.
For example, in the Guryong Village urban development project, repeated objections from landowners delayed the project by more than five months. Reflecting such cases, the city decided to apply the regulatory reform to all future projects entering the compensation phase.
If requested by landowners, the city will establish detailed criteria to omit the city or provincial appraiser recommendation by applying Article 7, Clause 4 of the Seoul Metropolitan Government's Appraiser Recommendation Guidelines, which allows for omission when deemed unnecessary.
When SH Corporation is the project operator, if owners of at least two-thirds of the land area and a majority of all landowners submit a "Request for Omission of Appraiser Recommendation" consent form, only two appraisers?one recommended by the project operator and one by the landowners?will conduct the appraisal.
This means the omission procedure can proceed with landowner consent alone, without SH Corporation's agreement. The city expects these improvements to enhance transparency in compensation calculation, simplify procedures, and accelerate the progress of public interest projects.
Cho Namjun, Director of the Urban Space Headquarters at the Seoul Metropolitan Government, stated, "By improving the appraiser recommendation process through Regulatory Reform Proposal No. 68, we will enhance transparency in compensation calculation, simplify procedures, and speed up the implementation of public interest projects, thereby contributing to greater residential stability for citizens."
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