Focus on Profitability Improvement After New Town Deregulation
Application of Shintong Planning 2.0 and Regulatory Innovation
Total Supply of 33,000 Units in Jangwi Redevelopment Promotion District
The Seoul Metropolitan Government is resuming the redevelopment project for the 'Jangwi District 13,' where development had stagnated for a decade following the cancellation of the New Town plan. Through the application of Shintong Planning 2.0 and regulatory innovation, the city aims to shorten the project timeline and improve profitability, with plans to supply approximately 6,000 housing units.
On the morning of November 6, Seoul Mayor Oh Sehoon visited the areas of Jangwi 13-1 and 13-2, which were selected as candidates for expedited integrated redevelopment planning (formerly known as Jangwi District 13).
This area had seen development halted for a long period after being removed from the redevelopment zone in 2014 as part of the New Town exit strategy. In April of this year, it was selected as a candidate for expedited integrated redevelopment planning, making it the last of the six zones released from the Jangwi Redevelopment Promotion District to have its redevelopment project resume.
Jangwi Redevelopment Promotion District Area. Photo by The Asia Business Daily Database
During his visit, Mayor Oh stated, "To dramatically enhance the project's profitability, we will mobilize all possible measures and regulatory innovations that can be applied on-site to recover the lost decade."
The city plans to accelerate the project timeline and improve profitability by applying Shintong Planning 2.0 and regulatory innovation measures. This approach takes into account the fact that, since the area was removed from the redevelopment zone, both the number of new buildings and association members have increased, while soaring construction costs have undermined profitability.
In particular, if Shintong Planning 2.0 is applied to streamline procedures and reduce the redevelopment period by an additional year, the city expects the typical 18 years and 5 months required for such projects to be shortened to 12 years. In addition, the city plans to focus on improving profitability by relaxing the existing floor area ratio by up to 30% and allowing the legal maximum floor area ratio to be increased by up to 1.2 times.
Furthermore, to prevent delays after the project commences, the city will introduce a standard processing deadline system, setting maximum processing periods for each stage of the Shintong Planning project. The city will also implement the roles of Fair Progress Officer and Conflict Management Officer to eliminate factors that could cause delays during the permitting process.
The city expects that approximately 6,000 housing units will be supplied to the site through this project. Once the redevelopment of Jangwi District 13 is completed, the Jangwi Redevelopment Promotion District will have supplied a total of 33,000 housing units, making it the largest New Town development in Seoul.
Mayor Oh stated, "With the repeated cycles of New Town and urban regeneration, it is now time for the Seoul Metropolitan Government to respond to the residents of Jangwi District 13, who have waited so long for redevelopment, by pushing the project forward at a faster pace. In addition, to ease the heightened anxieties caused by the recent 10-15 policy measures and to accelerate the project, I will also urge meetings and proposals with the central government and the National Assembly."
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