Leading district with 26,000 households in Bundang, Ilsan, Pyeongchon, Sanbon, Jungdong
Exempted from safety diagnosis, increased floor area ratio, simplified permit issuance, etc.
Key focus on residents’ consensus… Groundbreaking in 2027, first move-in by 2030
Criticism of “lack of feasibility”… Insufficient relocation measures as well,
View of Ilsan in Goyang, Gyeonggi Province. May 22, 2024. Yonhap News, ‘The “leading district” that will start redevelopment first in the first generation new cities (Bundang, Ilsan, Pyeongchon, Sanbon, Jungdong) will be designated this year with more than 26,000 households, up to a maximum of 39,000 households. Among the leading districts to be finally selected in November, Bundang’s pilot district exceeding a preliminary approval rate of 80% and Ilsan Gangchon·Baekma Village are mentioned.’,
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, ‘Once designated as a leading district, it will enjoy benefits such as exemption from safety diagnosis, change of land use, and an increased floor area ratio of 150% (based on the general residential area of Type 3 from 300% to 450%). However, considering that it usually takes around 10 years from the start of redevelopment projects to move-in, there are concerns about the government’s plan to aim for the first move-in by 2030.’,
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, ‘Minister of Land, Infrastructure and Transport, Park Sang-woo, announced that he had agreed with the mayors of the first-generation new cities on selecting leading districts in Bundang (8,000 households), Ilsan (6,000 households), and Pyeongchon/Jungdong/Sanbon (around 4,000 households each). Additional selection of 1–2 zones per new city is possible depending on the local conditions, but it is limited to within 50% of the existing volume. For example, in Bundang, a maximum of 12,000 households can be designated as leading districts. The leading district volume accounts for 10-15% of the total households in the first generation new cities (292,549 households).’,
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, ‘When it comes to the criteria for selecting leading districts, the residents’ approval rate accounts for 60 points (out of 100 points). If the approval rate is 50%, they receive 10 points, and if it is over 95%, they receive 60 points. Factors such as the urgency of improving the residential environment per household, the number of participating housing complexes, the number of participating households, and the necessity of activating urban functions are evaluated. If agreements are reached with surrounding commercial districts to enhance the feasibility of the project, they can receive an additional 5 points.’,
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, ‘Since the residents’ approval rate is crucial, areas such as Bundang Seohyeon-dong’s pilot district, Sunae-dong Yangji Village, Ilsan Gangchon Village 1·2, Baekma Village 1·2 are speculated to have a high possibility of being designated as leading districts due to high preliminary approval rates. However, since the preliminary approval rate does not have legal force, residents’ approval must be obtained again according to the announcement criteria on June 25.’,
Graphic of the plan for designating leading districts in the first-generation new cities., ‘Once designated as a leading district, the permit issuance process for swift project implementation will be simplified. By mid-August, after formulating the basic policy, local governments will select leading districts in November after collecting opinions. Groundbreaking will begin in 2027 with the goal of moving in by 2030. The redevelopment volume of the first-generation new cities is planned to be designated each year from this year to 2033 in a scale of 20,000 to 40,000 households annually. In terms of the roadmap, there is about a 10-year difference between the first move-in and the last move-in of the redeveloped first-generation new cities.’,
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, ‘During the redevelopment, there is a need for places for existing residents to move. The Ministry of Land is preparing a relocation plan, such as dispersing the development timing and managing ongoing development projects within the living zones. Small-scale new developments will also be conducted if necessary. Minister Park stated, “Starting next year, we will continue to select a certain volume annually as leading districts, and depending on the market conditions, we will adjust the designated volume and permit volume, and disperse the relocation timing to manage the market concurrently.”‘,
Minister of Land, Infrastructure and Transport Park Sang-woo is holding a briefing on the plan to designate leading districts in the first-generation new cities at the Government Seoul Cheongsa in Jongno-gu on May 22, 2024. Yonhap News, ‘However, there is significant skepticism about the feasibility of the government’s announcement. Even considering the application of special laws, doubts arise as to whether they can complete the process from designating leading districts to the first move-in within 6 years.’,
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, ‘Kim In-man, head of the Real Estate Economics Research Institute, remarked, “It will take 2-3 years for 8,000 households in Bundang to move, so they need to start now to achieve the groundbreaking in 2027,” and said, “Even with the application of special laws, redevelopment projects ultimately come down to a matter of money. Considering the possibility of disputes, it may be possible to move in by 2040 at the earliest.”‘,
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, ‘Professor Lee Chang-moo of Hanyang University’s Department of Real Estate explained, “In redevelopment projects, all sorts of discord are likely to arise, and ‘integrated redevelopment’ in the first-generation new cities will entail even greater conflict than individual ones” He also pointed out that the recent trend of delayed redevelopment projects due to a sudden surge in construction costs could serve as a stumbling block for the redevelopment of the first-generation new cities.’,
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, ‘Relocation measures are also a cause for concern. There are concerns about a significant demand for large-scale relocations leading to a stimulus in short-term leases, yet the measures by the Ministry of Land remain at a theoretical level. Director Kim commented, “The feasibility of relocation measures is lacking,” and said, “Creating public relocation sites is needed, but it is not easy as the current supply is insufficient.”‘,
A banner informing the agreement rate for redevelopment is attached to an apartment in Bundang-gu, Seongnam, Gyeonggi Province on the afternoon of May 22nd, announcing the plan to designate leading districts for the first-generation new cities. 2024.5.22. News1,
Apartments densely packed in Bundang-gu, Seongnam, Gyeonggi Province on the afternoon of May 22nd when the plan to designate leading districts for the first-generation new cities was announced. 2024.5.22. News1,