Expansion of Redevelopment Project Areas
Removal of Maximum Height Restrictions
The Seoul Metropolitan Government has announced plans to improve or eliminate three regulations in the housing and construction sectors to revitalize the construction market. The aim is to expand redevelopment project areas, stimulate urban renewal, and ease financial burdens on the construction industry.
On August 13, the city stated that it would implement Regulatory Abolition Proposals No. 139, 140, and 141, reflecting concerns raised by the construction industry.
The proposals to be abolished or improved this time are as follows: △No. 139 (Expansion of Urban Renewal Redevelopment Project Areas and Removal of Height Restrictions) △No. 140 (Improvement of Damages Related to SH Corporation’s New Construction Purchase-Lease Housing Agreements) △No. 141 (Inclusion of Water Costs and Equipment Expenses in Landscaping Project Cost Calculations).
Expansion of Redevelopment Project Areas... Removal of Maximum Height Restrictions
First, through Regulatory Abolition Proposal No. 139, the city will expand the scope of urban renewal redevelopment projects and eliminate height restrictions. The plan is to encourage large-scale mixed-use developments and increase public spaces to revitalize aging urban centers.
Accordingly, Chang-dong, Sanggye, and Jamsil will be newly added as metropolitan center redevelopment zones, while Gangnam will be newly included as a downtown area. Previously, only Yeongdeungpo was included as a downtown area, and Gasan, Daerim, Yongsan, Cheongnyangni, and Wangsimni were designated as metropolitan center redevelopment zones. In the case of local centers, redevelopment was limited to Sinchon, Yeonsinnae, Bulgwang, Sadang, Isu, Seongsu, Bongcheon, Cheonho, Gildong, and Dongdaemun. With the expansion of eligible redevelopment areas, urban renewal projects in central districts are expected to gain momentum.
Additionally, the city will relax the standard building height requirements based on the hierarchy of urban centers and completely remove maximum height restrictions. For Mapo and Gongdeok, the standard building height will be raised from the previous 110 meters (for station areas and commercial zones) to 150 meters, while other areas will have a uniform standard of 130 meters. In Yeongdeungpo, the maximum building height for station areas, general commercial, and quasi-industrial zones was previously capped at 200 meters, but going forward, these restrictions will be lifted. There will also no longer be any limits on standard building heights.
The city also plans to rationally improve the floor area ratio (FAR) system for urban renewal redevelopment zones. Recognizing that the current FAR is lower than in general areas, making development less favorable, the city will increase the allowable FAR for commercial and quasi-residential zones by 10% compared to current levels and reflect improvements for quasi-industrial zones.
In anticipation of increased demand for senior housing as the city enters a super-aged society, incentives will also be introduced. If more than 20% of the above-ground floor area is dedicated to senior welfare housing, the maximum allowable FAR will be increased to 200%, and the height limit will be relaxed by an additional 30 meters.
The city will conduct a public review for residents to amend the master plan and implement Regulatory Abolition Proposal No. 139 within the year.
If Classified as Non-Purchasable Housing, SH Will Purchase... Inclusion of Water and Equipment Costs in Project Expenses
The city will also address damages incurred after signing new construction purchase-lease agreements with SH Corporation if the property is later designated as a planned development area during construction. This is in consideration of the fact that, once designated as a planned development area, the property is classified as non-purchasable housing, leaving developers to bear the losses.
Through Regulatory Abolition Proposal No. 140, if a site received construction approval before the start of a development project, SH Corporation will be able to purchase the property even if it is later included in a planned development area. This is intended to preemptively eliminate risk factors for developers.
To alleviate funding difficulties in the construction industry, Regulatory Abolition Proposal No. 141 will require that water and equipment costs be included in construction expenses. Given that construction companies incur water and transportation costs for watering work during heat waves, these expenses will now be actively reflected in project cost calculations. Proposals No. 140 and 141 will take effect immediately without additional procedures.
The city plans to continue identifying and improving regulations that citizens and businesses experience in the field.
Lee Changhyeon, Director of Regulatory Innovation Planning for Seoul, stated, "This regulatory reform effort is aimed at removing major obstacles to economic revitalization and addressing the difficulties faced by citizens and the construction industry," adding, "We will listen even more closely to voices from the field through ongoing communication and sustained efforts, rather than one-off measures."
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