The Seoul city government projects that if the floor area ratio regulations for redevelopment projects are relaxed by 1.2 times, the number of new housing units in the city could increase from 87,000 to 130,000 by 2031.
Seoul Mayor Oh Se-hoon announced on August 26, following a second meeting with Minister of Land, Infrastructure and Transport Kim Yoon-deok, that the ministry has agreed to positively consider the proposal to relax the redevelopment floor area ratio.
Previously, the city had suggested relaxing these regulations to expand housing supply through redevelopment projects.
Mayor Oh stated, "The proposed increase in new housing units by 2031 is 87,000, and if we raise the floor area ratio by 1.2 times, an additional 43,000 units could be added, bringing the total to 130,000 units."
Seoul believes that the additional 43,000 units made possible by the floor area ratio relaxation would have a greater supply impact than housing developments in specific areas like Yongsan Park or Tancheon. Oh explained, "This would yield more units than the discussions about building in Yongsan and Tancheon, leading to a significant increase in new housing supply."
However, for the relaxation of the floor area ratio to translate into actual housing supply, further discussions on specific conditions, such as the proportion of rental housing, are necessary. Mayor Oh noted, "We need to negotiate ways to secure a certain level of rental housing in exchange for increasing the floor area ratio."
He added, "The potential for a significant increase in new housing units could lead to the most productive and visible outcomes from negotiations between the city and the ministry. I believe it is a positive direction for the government to consider this proactively."
Previously, the city maintained its stance that it could not accept any damage to the main body of Yongsan Park for housing supply and proposed alternative sites such as the Tancheon Water Reclamation Center and youth industrial complexes.
If the relaxation of the floor area ratio is realized, it could significantly increase housing supply in the city center without utilizing large-scale separate sites, potentially introducing new variables into the housing supply negotiations between the government and Seoul.
* This article has been translated by AI.
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