Public Redevelopment Pilot Project Marks Five Years with No Groundbreaking

Public Redevelopment Pilot Project Marks Five Years with No Groundbreaking

Despite the introduction of public redevelopment aimed at accelerating stalled urban renewal projects due to insufficient profitability and resident conflicts, no groundbreaking has occurred in any of the initial pilot areas after more than five years. According to data from Seoul's autonomous districts and the Korea Land and Housing Corporation (LH), all eight areas selected as the first candidates for public redevelopment in January 2021, including Heukseok 2 District, Yangpyeong 13 and 14 Districts, Yongdu 1-6 District, Bongcheon 13 District, Sinseol 1 District, Gangbuk 5 District, and Sinmunno 2-12 District, have yet to begin construction. The government had projected that approximately 4,700 housing units could be supplied from these areas. Three areas, including Sinseol 1 District, Yangpyeong 13 District, and Yongdu 1-6 District, have received project implementation approval. Yongdu 1-6 District was approved by Dongdaemun District on October 22. Until recently, the Seoul Urban Renewal Information System indicated earlier stages, but according to district announcements, the project implementation approval stage has been reached.

Residents Abandon Public Redevelopment Despite Increased Floor Area Ratio

As the government pushes to expand floor area ratios and financial support for public redevelopment, some projects have seen candidate selections canceled due to disagreements among residents. Even with benefits from increased development scale, differing expectations for profits and burdens among property owners have hindered participation. According to the Seoul Urban Renewal Information System, the selection of public redevelopment candidates for the Geumho 23 District in Seongdong-gu and the area around 305 Yeonkeun-dong in Jongno-gu has been canceled. These areas were selected as candidates in March 2021 and August 2022, respectively. The Seoul city government announced last December that it would cancel the projects due to high levels of resident opposition.

Only Daewoo Construction Remains for 1.26 Trillion Won Reconstruction Project

At the second site briefing for the reconstruction project of Sinwol City Apartments in Yangcheon-gu, only Daewoo Construction attended. The project, with an estimated construction cost of 1.2566 trillion won, faces challenges in establishing competitive bidding as only one company attended the briefing. According to the construction industry on November 5, the Korea Land Trust, the project implementer, held the second site briefing at 10 a.m., with only Daewoo Construction present. In the first briefing held in September, four companies, including Daewoo Construction, Hyundai Construction, POSCO E&C, and Jeil Construction, attended, but only Daewoo Construction submitted a bid, which was unsuccessful. The Korea Land Trust plans to close the second bidding on December 21 at 2 p.m. If Daewoo Construction is the sole bidder again and the bid fails, the transition to a negotiated contract and subsequent selection procedures will be closely watched.

* This article has been translated by AI.