Apartment complexes in Bundang, the first new city. / Source = Hankyung DB
As the Presidential Transition Committee announced its position for three days in a row on the pledge to reorganize the first new town, an analysis showed that the first new town was the driving force behind the rise in house prices after the presidential election. Although Ahn Cheol-soo, chairman of the transition committee, said, “We will carry out the first-phase new town reorganization project without any setbacks,” there are evaluations that the transition committee’s approach to the first-phase new town, which has become a fuse of housing price stimulation, has no choice but to be more cautious.
According to Real Estate R114 on the 27th, the rate of change in apartment sales in the first new cities such as Bundang, Ilsan, Pyeongchon, Jungdong, and Sanbon changed the most rapidly in the country before and after the 20th presidential election. Real Estate R114 analyzed that the first new town recorded a slight increase of 0.07% for about two months before the presidential election this year, but rose 0.26% in the two months after the election, increasing the rate of increase 3.7 times.
In the major metropolitan areas, the first new town was the only area in which apartment prices changed significantly before and after the presidential election. In Yongsan-gu, which drew attention from the market due to the relocation of the presidential office, the rate of change before and after the presidential election slowed from 1.15% to 0.39%. Even by region, △Seoul (0.25%→0.08%) △Gyeonggi (0.06%→0.03%) △Metropolitan (0.15%→0.05%) regions slowed to increase before and after the election, and △Second new town (-0.25). %→-0.23%) △Incheon (-0.16%→-0.19%) continued the weakness.
Among the new towns in the first phase, the place where house prices jumped the most after the presidential election was the Ilsan New Town in Goyang (0.52%). Next was △Middle East (0.29%) △Bundang (0.26%) △Sanbon (0.14%) △Pyeongchon (0.12%). The average price per household was in the order of △ Bundang (1.25 billion won) △ Pyeongchon (870 million won) △ Ilsan (680 million won) △ Sanbon (570 million won) △ Middle East (560 million won).
1st new town, rise 3.7 times higher on expectation of reconstruction
Jihae Yoon, senior researcher at Real Estate R114, said, “The increase in house prices in the first new town is a result of reflecting the expectation of an increase in floor area ratio in accordance with the Special Act on Reorganization of the First New Town, which is the main real estate promise made by President-elect Yoon Seok-Yeol. It was introduced to a lesser place.”
As house prices in the first new town fluctuate, the acquisition committee is also taking a more cautious stance on the reorganization project. Ahn Cheol-soo, chairman of the acquisition committee, said on the same day, “We will proceed with the first new town redevelopment project without any setbacks.” “The most important thing is to raise the floor area ratio and simplify safety diagnosis. As the number of households increases, traffic problems arise, so we are considering this.” .
Photo = Real Estate R114
The transition committee has been taking a stance on the reorganization of the first new city for three days in a row since the 25th. On the 25th, it was announced that the first new town redevelopment project was “a matter under consideration as a mid- to long-term national task.” As the market’s backlash continued the next day at the position that reads that a quick reorganization is impossible, Shim Gyo-eon, the real estate TF team leader, gave an additional explanation, saying, “We need to establish a maintenance plan to prevent confusion in the rental market due to large-scale relocation.”
After the announcement of the development plan in 1989, the first new towns created by 1997 consisted of 432 complexes and 290,000 households. When the first new town of about 290,000 households is reorganized at the same time, market chaos is expected, so plans are being made such as securing a complex exclusively for relocation to the third new town. After that, it is possible to proceed with the business in earnest.
“Mid-to-long-term task”, “Progress without setbacks” Careful takeover committee
The industry believes that a considerable amount of preliminary work is required for the reorganization of the first new city. This is why it is virtually impossible to move 290,000 households and start construction at the same time. A construction industry official said, “Even at the time of the construction of the first new town, it was difficult to procure materials due to large-scale construction, so there was an incident where salty sea sand was used in some complexes. If it is raised, it will be between 400,000 and 500,000 households, but it is difficult to carry out a construction like this at once,” he pointed out.
Another official said, “There is nowhere for the population of the first new city to move at the same time, and there will be a jeon and monthly rent turmoil that has never been experienced before.” He emphasized, “It is difficult to activate the reconstruction of each complex because we cannot wait for the large-scale reorganization project. We cannot ignore the side effects that will occur if the population increases while maintaining the existing infrastructure of the city such as roads and water and sewage.”
Ahn Cheol-soo, Chairman of the Presidential Transition Committee. photo = news 1
These concerns are also reflected in Yoon-elect’s election promises. President-elect Yoon’s promises included a ‘complex for migration’. Create a complex to respond to the demand for migration from the first new town to the third new town, and move and reconstruct sequentially according to the age of the building, and then move to public rental housing, etc. the idea of using it. A plan was laid out to promote the reconstruction in units of a certain division, change the land use according to the situation of each city, promote the species upgrade, and improve the infrastructure at the same time.
However, except for the time required for the preparation stage for systematic and sequential reorganization, the transition committee judges that the speed of business execution itself will be fast. The industry believes that it takes an average of 13 years for an apartment reconstruction project, because the time required for the project can be reduced by simplifying the licensing process through a special law and reducing the maintenance business process.
In response, Shim emphasized, “General maintenance projects take a very long time, but in the case of the first new city, it is possible to dramatically shorten the period due to special laws, etc.”
Oh Se-seong, reporter at Hankyung.com sesung@hankyung.com
