Samsung Hanshin and Woosung Apartments in the demonstration complex in Bundang-gu, Seongnam-si, Gyeonggi-do, where the Reconstruction Promotion Preparation Committee was established last month. / Reporter Kim Beom-jun
Among the five first-phase new towns built during the Roh Tae-woo administration, including Bundang, Ilsan, Pyeongchon, Sanbon, and Middle East, the first complex to be reconstructed appeared. It is expected that discussions on easing regulations such as floor area ratio for the maintenance of the aging first-phase new city are expected to ignite.
According to the maintenance industry on the 27th, residents of the demonstration complex in Seohyeon-dong, Seongnam-si, Gyeonggi-do (Samsung Hanshin, Woosung, Hanyang, Hyundai) recently launched the ‘Bundang Demonstration Complex Reconstruction Preparation Committee’.
These complexes were completed in September 1991 and were the first to move into the first new city. After the completion of the reconstruction period (30 years of completion) last month, preparations for reconstruction began immediately. The pilot complex consists of a total of 7,769 households, including 1781 households in Samsung Hanshin, 1874 households in Woosung, 2419 households in Hanyang, and 1695 households in Hyundai. When the reconstruction is completed, it is expected to be reborn as a mammoth-class complex with 10,000 households. It is equivalent to the reconstruction of Dunchon Jugong (12,032 households) in Gangdong-gu, the largest in Seoul.
The fact that the current floor area ratio of the pilot complex is around 200% (187~202%) is a variable. If the floor area ratio obtained by dividing the total floor area of the building by the site area is high, the number of households cannot be increased significantly, making it difficult to promote reconstruction. In Seoul, if the floor area ratio exceeds 180%, business feasibility is generally considered to be low. Although a higher floor area ratio is allowed in Seongnam (280% of type 3 general housing) than in Seoul (250%), it is true that the floor area ratio of the pilot complex is burdensome. This is the reason why discussions on remodeling are more active than reconstruction in the first new towns including Bundang.
Experts emphasize that the discussion on how to reorganize the aging first-phase new city should begin in earnest. The supply of new apartments in the first phase new city close to Seoul is expected to have a significant effect on house price stabilization. Heo Yun-kyung, head of the Economics and Finance Department at the Korea Construction Industry Research Institute, said, “With the current system, both reconstruction and remodeling are not easy for the first phase of the new city.
Reconstruction in Bundang
Ilsan, Pyeongchon, and Sanbon will also meet ‘30 years’ next year
The demonstration complex in Bundang, Seongnam-si, Gyeonggi-do, which is the first of the first new towns to be completed, is being reconstructed. In Ilsan, Pyeongchon, and Sanbon next year, and in the Middle East by 2023, the 30th anniversary of the completion of the construction will mark the 30th anniversary of the completion of the construction, and complexes that have reached the deadline for reconstruction will begin to appear. In 2026, it is expected that the number of apartments in the first new city that can be reconstructed will reach 280,000. There are growing voices calling for a government-level contemplation and blueprint on whether to allow these reconstructions.
○ 1st new town to fill the reconstruction period
The first new city announced in 1989 was created to solve the housing shortage in the metropolitan area. It was a time when liquidity in the market increased due to the booming of ‘three lows (low dollar, low oil price, low interest rate)’ and house prices in Seoul skyrocketed as the 1988 Seoul Olympics were held. The Roh Tae-woo administration dispersed the Seoul population by creating new towns in five Gyeonggi regions adjacent to Seoul: Bundang, Goyang Ilsan, Anyang Pyeongchon, Bucheon Middle East, and Gunpo Sanbon. The development was carried out in a way that, after the government led the construction of housing land, the private sector purchases the land and sells apartments. This method is still applied to the second and third new towns.
The first phase of the new city, with a total planned population of 1.16 million, started moving in from the Bundang pilot complex in September 1991, contributing to the stabilization of housing prices in Seoul, which was skyrocketing at the time. In Bundang, 94,600 apartments were built. In addition, a total of 281,000 apartments were built, including 63,100 in Ilsan, 41,400 each in Pyeongchon and Sanbon, and 40,500 in the Middle East, most of which were moved in in 1996. The first phase of the new city gained popularity thanks to its high green rate, well-maintained roads, and various convenience facilities. The phrase ‘Bundang under Heaven’ was popular.
As the apartment buildings in the first phase of the new city moved in in the early 1990s, the need for maintenance increased as they deteriorated. However, the first-phase new town has an average floor area ratio of 169 to 226%, so discussions about remodeling have been more active than reconstruction so far. After the ‘Hansol Village Complex 5’ in Jeongja-dong, Bundang received approval for the first remodeling project in February, Bundang has been running ‘Rainbow Village 4 Complex’, ‘Neuti Village 3/4 Complex’, ‘Maehwa Village 1 & 2 Complex’ and ‘Hansol Village Complex 6’. etc. are in the process of remodeling. Remodeling can be carried out after 15 years of construction or more. In addition, △Ilsan ‘Munchon 16th complex’, ‘Jangseongmaeul 2nd complex’ △Pyeongchon ‘Mokryun 2nd and 3rd complex’ △Sanbon ‘Ureukjugong 7th complex’, ‘Forsythia 13th complex’ △Middle East ‘Hallamaeul 3rd complex’, ‘Geumgang village’, etc. It is in the process of establishing this remodeling promotion committee and selecting a contractor.
○Need maintenance business guidelines
Analysts say that it is not easy to secure the feasibility of the first new town maintenance project because there are many regulations on both reconstruction and remodeling. Most of the new towns in the first phase consist of high-rise apartments with a high floor area ratio, so there is a limit to increasing the number of households for sale by securing an additional floor area ratio during reconstruction. In the case of the Bundang pilot complex, which is promoting the reconstruction of No. 1, the floor area ratio for each complex is 187~202% with the highest 30 floors. Seongnam City has set the upper limit for the highest floor area ratio in residential areas at 280%. If the existing floor area ratio is high, you may receive a house that is smaller than the existing house after reconstruction. In addition, various regulations such as strengthening safety diagnosis and the system for recovering excess profits are also obstacles to the reconstruction.
Remodeling is relatively less regulated than reconstruction, but it is also difficult to secure business feasibility. In the case of vertical extension remodeling, which increases the number of floors in an existing apartment, the number of households increases and business feasibility increases, but the safety review process is complicated. Since this system was allowed in 2014, the only place in the country that has received business approval for vertical expansion is Seongji Apartment in Songpa-gu, Seoul. It has not yet been decided whether the demolition of the bearing walls between furniture (the walls that support the weight of the apartment) will be allowed.
Experts agree that long-term and comprehensive plans such as special laws related to the 1st new town development project or district unit plans should come out in order to stabilize the housing market in the metropolitan area. It is pointed out that it is difficult to formulate an efficient urban plan in line with demographic changes if the maintenance project is carried out for each complex. Seo Jin-hyeong, president of the Korean Real Estate Association (Professor at Kyungin Women’s University), said, “The activation of the 1st new town maintenance project can be the most reliable card for stabilizing house prices in Seoul. emphasized.
Reporter Yeonsu Shin sys@hankyung.com
