Land Use Zone Upgrade and Increased Floor Area Ratio
Application of Profitability Adjustment Factor, Reduction in Resident Contributions
Expected Increase of Over 40 Saleable Units
The Seoul Metropolitan Government is launching extensive support for the Sillim District 7, which has faced difficulties due to regulatory hurdles. The city plans to accelerate the redevelopment project by improving its profitability.
On January 19, Seoul Mayor Oh Sehoon visited the Sillim District 7 site to inspect the aging residential environment and pledged active policy support, including measures to improve project profitability.
During his meeting with residents of Sillim District 7, Mayor Oh emphasized, "Redevelopment projects must be carried out consistently, regardless of changes in the policy environment. For areas like Sillim District 7, where residential environment improvement is urgently needed, the Seoul Metropolitan Government will mobilize all available administrative resources to ensure that projects are not derailed by regulations and will take full responsibility until the end."
Sillim District 7 is a densely populated low-rise residential area located on the slopes of Mokgol Mountain. With a floor area ratio of only 170%, the area was removed from the redevelopment zone in 2014 due to concerns about profitability, resulting in a prolonged development stagnation. In 2024, it was re-designated as a redevelopment zone, and after 10 years, the project is now back on track. The target site is expected to be transformed into a large-scale forest-side complex with 1,400 households in the future.
To ensure smooth progress, the city has decided to provide significant support to improve the project's profitability. Previously, as part of the expedited integrated planning for Sillim District 7, the land use zone was upgraded from Type 1 to Type 2, and, unusually, the floor area ratio was increased from 170% to 215%. Various other forms of support were also provided.
In addition, the city plans to apply a project profitability adjustment factor of 2.0, effectively doubling the floor area ratio incentive. The relaxation of public contribution requirements in height-restricted areas, known as the third regulatory removal measure, will also be applied. As a result, the number of units available for sale is expected to increase by more than 40 compared to the previous plan, and the public contribution rate, which was previously set at 10% when upgrading land use zones in height-restricted areas, will be significantly reduced to 3%. With the increase in sales revenue, residents’ financial contributions are expected to decrease. If residents apply for changes to the redevelopment plan after establishing a cooperative and implementing these improvements, the city will provide integrated reviews to expedite both the redevelopment plan changes and the approval of the project implementation plan.
The city plans to actively support districts facing difficulties in project implementation, like Sillim District 7, in order to achieve its goal of starting construction on 310,000 housing units by 2031. In Gwanak District, starting with approximately 1,400 units in Sillim District 2 this year, a cumulative total of 13,000 units are scheduled to begin construction sequentially by 2031.
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