“Reduction of maintenance project period by special law”
“Massive relocation of 300,000 households … need to be prepared”
An apartment complex in the KINTEX area in Ilsan, Goyang-si, Gyeonggi-do. photo = Yonhap News
On the 26th, the Presidential Transition Committee announced twice its position on the first phase of new town development projects, including Bundang, Ilsan, Pyeongchon, Middle East, and Sanbon. It is interpreted that the market responded to the announcement the day before that it was “reviewing the first phase of the new city reconstruction project as a mid- to long-term national task” and was trying to explain it.
In a notice to the media on the evening of the same day, the transition committee said, “General maintenance projects take a fairly long time, but it is possible to dramatically shorten the period required for the first-phase new towns due to special laws, etc.” He added, “Preparations for the implementation of the election-related pledges related to the first phase of the new city reorganization are proceeding as planned. We will actively collect the opinions of residents in the process.”
In the morning of that day, Shim Gyo-eon, the real estate task force team leader, gave an unscheduled briefing at the Jongno-gu takeover committee and said, “There is a misunderstanding about the expression that the first new town is a mid- to long-term review task. We are working hard to promote the maintenance project as soon as possible,” he said.
“However, we need to establish a maintenance plan to prevent confusion in the rental market due to large-scale relocation,” he explained. He also said, “(Reorganization of the first new city) was proposed as a common pledge between the ruling and opposition parties, and related bills have been submitted to the National Assembly, so we expect that there will be no disagreement.”
“Fulfillment of the 1st new city reconstruction promise, proceeding as planned”
On the previous day, the real estate task force of the transition committee announced that the first phase of the new city reconstruction project was “a matter under consideration as a mid- to long-term national task” through the announcement of senior deputy spokesperson Won Il-hee. In a position that reads that rapid reorganization is impossible, protests continued in the first-phase new city areas such as Bundang and Ilsan.
On this day, the transition committee said that it would shorten the period required for the first-phase new town redevelopment project, but considering the announcement of the transition committee, it is expected that a considerable amount of time will be required for the first-phase new town reorganization project. First of all, prior to the reorganization, the basic urban plan must be reworked from the beginning to make the first new city a future smart city with self-sufficient functions. Expansion of floor area ratio through vertical elevation will also take place in this process.
Shim Gyo-eon, the real estate TF team leader of the Presidential Transition Committee. photo = news 1
Next, in the third new town, an exclusive relocation complex for the first new town should be created. After the announcement of the development plan in 1989, the first new towns created by 1997 consisted of 432 complexes and 290,000 households. If reorganization is carried out at once, there will be a large-scale demand for migration that the market cannot handle. President-elect Yoon’s promises include a ‘relocation-only complex’ in order to respond to such demand.
The impact of the market can be minimized by creating an exclusive complex to respond to the migration demand of the first new city, such as the third new city. After the demand for migration in the first new city is resolved, the plan is to use it as a public rental complex. However, since the relocation-only complex cannot be built on the scale of the first new city, it is expected that the relocation and reorganization will be carried out sequentially depending on the age of the building. This is why it takes a considerable amount of time to reorganize the first new city.
In this process, the promotion of reconstruction of individual complexes is expected to take a hit. Infrastructure improvement such as water supply and sewerage, electric power supply, road security, etc. must be made in accordance with the growing population when reconstruction is carried out.
“I have to move 300,000 households… even if I increase the speed, it will be difficult in a short period of time”
In this regard, an official who was in charge of the 1st new town renewal pledge in the predecessor committee said, “The 1st new town lacked self-sufficiency, so bed townization was in progress. Concerned.
However, once the reorganization begins, the required period can be significantly shortened. 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. People’s Power Rep. Kim Eun-hye also proposed a related special law to the National Assembly.
An industry official said, “President-elect Yoon’s pledge to reorganize the first new city is to systematically promote redevelopment and reconstruction by division through land use change and species upgrade according to the situation of each city. It is difficult to hope that a project that requires 300,000 households to relocate will be accomplished within a short period of time,” he said.
Oh Se-seong, reporter at Hankyung.com sesung@hankyung.com
