13 sites identified as ‘Reconstruction No. 1’ in the first phase of new towns, including Bundang-Ilsan

35,897 units confirmed as ‘maintenance area’
Rebuilding after 33 years … 2030 residential goal

A general view of Yangji Village, Bundang-gu, Seongnam-si, Gyeonggi-do, which was selected as a core area for the reconstruction of old planned cities on the 27th. Seongnam = Reporter Lee Bok-bok [email protected] A total of 36,000 houses in 13 districts have been confirmed to start rebuilding first in the five new first-generation villages. 33 years after residence began in 1991, the first step in the city’s maintenance project was taken. However, it is noted that there is still a mountain of activities, such as confirming business feasibility and preparing migration measures, including the issue of union members’ contributions.

The Ministry of Land, Infrastructure and Transport, Gyeonggi Province, Seongnam, Goyang, Anyang, Bucheon, Gunpo, etc. announced the ‘Election Results for the 1st major new city development area’ on the 27th. Seondo District is the first center to pursue a maintenance project by implementing the ‘Special Act on Maintenance and Support for Ancient Planned Towns’, which came into force in August this year.

The number of houses in 13 districts in Seondo District is 35,897. This is 9.2% of the total 392,000 households in the first new city. Bundang, Seongnam-si and Ilsan, Goyang-si have 10,948 units (3 locations) and 8,912 units (3 locations) respectively.

The government’s goal is to establish a business plan next year, move in and start construction in 2027, and complete occupancy in 2030. As the floor area ratio of each new town increased from 169 to 216 % to 300 to 350% for high-density development, the total number of houses after reconstruction is expected to increase by more than 10,000.

However, in a situation where the burden of construction costs is still high, it is expected that the success or failure of the project will depend on how business feasibility is achieved. There are also many voices demanding that relocation measures be prepared quickly due to the high demand for relocation during the reconstruction.

The first rebuilding of the new city in 33 years will begin in 2027… Construction costs and steps to move ‘homework’

[1기 신도시 첫 재건축 지정] 10,948 houses in Bundang alone, including Saetbyeol Village and Dongseong-dong
8,912 houses in Ilsan and 5,957 houses in the Middle East were selected… Provide initial funding by creating a 12 trillion fund
Due to the rapid increase in construction costs, business feasibility is difficult … Forecast “Move in 10 years at the earliest”.

The reason the government decided on the 27th to rebuild only 13 districts in the first new city was because it thought it would be difficult to speed up the project with the way it is – already because of complex interests and rules. The government and local governments will provide full support to create and disseminate success stories.

33 years after the first move into the new city, the way to rebuild has been opened, but there are still many mountains to be found. Consolidating business viability, immigration measures, and improving metropolitan transportation networks are tasks that need to be solved immediately. In addition, since several buildings are undergoing integrated reconstruction, there is still the possibility that conflicts could arise between residents due to the size of the grant.

● The aim is to start construction in 2027, the last year of Mr Yeon’s term.

The first major new urban development area announced by the Ministry of Lands, Infrastructure and Transport and local governments consists of 13 districts and 35,897 houses. Of these, 10,948 units were allocated to Bundang, Seongnam-si, Gyeonggi-do, where competition to select the Seondo area was very strong. Bundang Seondo District includes three areas, including Saetbyeol Village Dongseong, Life, Ubang, Sambu, and Hyundai, which are pursuing unified reconstruction, as well as Yangji Village Geumho, etc., and Pilot Complex Woosung.

In Ilsan, Goyang-si, Gyeonggi-do, three locations (8,912 houses) were selected as core areas, including Baeksong Village Complexes 1, 2, 3, and 5, Hugok Village Complexes 3, 4, 10, and 15 , and Gangchon. Village buildings 3, 5, 7, and 8. In the Middle East, Bucheon-si, Gyeonggi-do, 5,957 houses, including △ Bandal Village A and △ Eunha Village, were selected as core areas, and in Pyeongchon, Anyang-si, Gyeonggi-do, 5,460 houses, including △Dream Village Geumo, △Saem Village, etc. △Dream Village Wooseong, etc. were selected as the main areas. There are two places in Sanbon Seondo district in Gunpo-si, Gyeonggi-do (4,620 houses), including △Jai Lily and △Hanyang Baekdu. It is known that most of the areas submitted for the Seondo area competition received perfect scores in the residents’ approval level category, and that public contributions and the number of parking spaces closed success or failure.

In addition to the Seondo area, the Ministry of Land, Infrastructure and Transport and the local government decided to fully support the reconstruction of two townhouse complexes, including the Bundang Magnolia Village townhouse (1,107 units ) and Ilsan Jeongbal Village centers 2 and 3 (262). units).

According to the government’s goal, the existing districts should finish moving and start construction in 2027, the last year of President Yoon Seok-yeol’s term. The target period for occupancy after completion is 2030.

Due to the need for speed, the government has also created financial and administrative support measures. We plan to create a ‘Future City Fund’ worth 12 trillion won to provide seed money needed for maintenance projects. Usually, reconstruction projects rely on loans from financial institutions to finance the project until sales revenue comes in, so interest costs are high. In addition, to reduce conflict factors in a situation where construction costs have increased, the Korea Real Estate Board has decided to take over the task of measuring the contribution.

● Expert: “You can move in in 10 years at the earliest.”

However, experts agree that “the government’s plan is too optimistic.” The reasoning is that in a situation where construction costs have increased, it will not be easy to ensure business feasibility because there are many areas that have promised additional public grants to increase floor ratio benefits get Since the feasibility of the project is directly related to the contribution that residents have to pay, if the contribution is higher than expected, the number of opposition residents can increase and the project can be put off.

It is difficult to predict the contribution at the moment as there are so many variables such as the area’s floor area ratio and the number of homes, but the industry estimates that at least hundreds of millions will be needed of earnings to pay for each household. In particular, in Ilsan, the Middle East, and Sanbon, where housing prices are relatively low, there is more concern about the share of the cost due to low sales profits even after reconstruction.

Kim Je-kyung, head of Tumi Real Estate Consulting, said, “Until now, there has been a feeling of ‘let’s just do it,’ but there are many obstacles when starting a business. “If the amount of public contributions such as public rent increases, it is inevitable that the feasibility of business will decrease, but if such problems arise, it will not be easy for residents to accept it easily,” he said.

Another obstacle is that the 13 districts in the Seondo district are following a unified reconstruction with nearby centers. This is because there are so many stakeholders. Lee Chun-ran, CEO of Realrich Asset, said, “It could take 10 years at the earliest to move to integrated reconstruction, or 20 years at the latest.”

Migration measures are also seen as a problem that needs to be solved. The ‘supply cliff’, which will see the number of tenants moving into the metropolitan area, is expected to begin in earnest next year. If the demand for the movement of tens of thousands of units is added at the same time, rental prices in the metropolitan area can increase. Kwon Dae-jung, a real estate professor at Sogang University Graduate School, said, “If there is no detailed plan, the demand to move can lead to instability in the rental market and even affect the sales market . “

The government has decided not to build transit centers or houses only to rebuild migrants. Instead, we plan to absorb the demand for relocation by using the development of new housing sites nearby or idle land, public leasing, and rebuilding of old agreement- rent In addition, there are opinions that metropolitan transportation measures need to be improved to prepare for population growth after the reconstruction is completed. Specific immigration measures and metropolitan transport development plans will be announced next month.