Four Sites Including Hwaseong Jinan 1-2 District Selected as Candidates for Gyeonggi Province Public Redevelopment Projects

[Suwon Ilbo=Park No-hoon Reporter] Gyeonggi Province announced on the 16th that it has selected four sites—Gwangmyeong District 7, Goyang Wondang Districts 6 and 7, and Hwaseong Jinan 1-2 District—as candidates for the 'Gyeonggi Province Public Redevelopment Project.'

This is the first time Gyeonggi Province has selected candidates for a public redevelopment project, and it is expected to invigorate the province's basic housing project currently under way.

Public redevelopment is a redevelopment project carried out with the participation of public institutions such as Gyeonggi Housing & Urban Development Corporation (GH) and is a core housing policy of the government's 'Measures to Strengthen Housing Supply in the Seoul Metropolitan Area' announced in May last year.

The main contents include raising the floor area ratio to 1.2 times the legal limit to reduce the financial burden on union members, and an integrated review system for construction and traffic matters to shorten the project period.

The project period (from redevelopment district designation to completion) is expected to be shortened from the existing 13 years to 6-7 years. In exchange for increased floor area ratio, 20-50% is allocated as rental housing to contribute to the public.

Gyeonggi Province's first four public redevelopment candidates are ▲Gwangmyeong District 7 (Gwangmyeong-dong, 93,830㎡) ▲Goyang Wondang Districts 6 and 7 (Seongsadong, Deogyang-gu, Goyang-si, 158,917㎡) ▲Hwaseong Jinan 1-2 District (Jinan-dong, Hwaseong-si, 11,619㎡).

The number of housing units to be supplied upon project completion is estimated at 7,380 units.

Gyeonggi Province expects to be able to supply over 700 units of 'basic housing,' the province's flagship public housing policy, by utilizing a portion of rental housing units that will account for approximately 10-20% of the total 7,380 units.

GH, the preliminary project implementer, plans to hold on-site briefing sessions for residents in the candidate districts to explain the key contents and expected effects of public redevelopment, gather resident opinions, and complete the preparation of redevelopment plans by year-end and the procedures for designating public implementers.

Gyeonggi Province will also implement measures to prevent speculation following the designation of public redevelopment districts. Due to concerns over speculative demand for acquisition of sales rights and sharp increases in land prices, the province will designate three sites—Goyang Wondang Districts 6 and 7 and Hwaseong Jinan 1-2 District—as land transaction permit zones from July 21 to July 20, 2024.

Gwangmyeong District 7 was already designated as a land transaction permit zone by the Minister of Land, Infrastructure and Transport from March 2 this year to March 1, 2023, in accordance with the third new city policy.

In land transaction permit zones, transactions of housing, commercial buildings, and land above a certain size require permission from the city, county, or district office head. Failure to obtain permission before concluding a land transaction contract results in imprisonment for up to two years or a fine of up to 30% of the land price.

In particular, for residential land, transactions are restricted for two years and the land must be used only for actual residence.

Additionally, the province announced July 16, the date of the public redevelopment project candidate announcement, as the standard date for calculating the rights to purchase buildings within the candidate sites to block speculative forces seeking to acquire sales rights.

Cases where ownership is acquired through new construction or 'equity splitting' after the standard date will not be recognized for housing sales rights, thereby preventing speculation. By preventing equity splitting, additional financial contributions from union members can also be suppressed.

Meanwhile, Gyeonggi Province and GH made efforts from the preparatory stage to enable the introduction of basic housing into public redevelopment projects. The province and GH conducted their own recruitment of candidate sites in December last year, and 10 aging areas that obtained consent from at least 10% of local residents participated in the recruitment.

Subsequently, GH held a 'Gyeonggi Province Public Redevelopment Candidate Selection Committee' composed of Gyeonggi Province, the Ministry of Land, Infrastructure and Transport, and urban planning experts, comprehensively reviewed urgency, resident and local city urban planning direction, and housing supply effects, and selected four final candidates.

GH plans to continue discovering additional candidate sites for public redevelopment and other public redevelopment projects.

Governor Lee Jae-myung of Gyeonggi Province said, "When residents directly pursue redevelopment, frequent disputes and lawsuits delay projects and increase union members' financial contributions, but public redevelopment enables transparent and rapid project implementation. Additionally, by easing floor area ratios, we will reduce residents' burden, and supply additionally secured rental housing as basic housing available to anyone without housing without discrimination, creating an opportunity to eliminate the culture of discriminating against rental housing."
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