2024-01-11 18:00:31
On the 10th, the government changed the law to allow reconstruction to begin without a safety diagnosis and introduced a supply plan that provides floor area ratio benefits for the first integrated reconstruction of the new city, causing dissatisfaction among residents of the complex who were pursuing remodeling. It is argued that only reconstruction and redevelopment are subject to comparative disadvantages as regulations are relaxed. Unlike reconstruction, where a complete demolition is followed by a new building, remodeling is a maintenance project in which the basic structure of the apartment is left behind and the interior and facilities are newly built. Nationwide, approximately 260 complexes and 400,000 households are pursuing remodeling.
On the 11th, the Seoul City Remodeling Housing Association Council said in a statement, “Although this measure is a housing policy, there was no content that remodeling complexes across the country might agree on,” and added, “We need to prepare a quick and effective policy to revitalize remodeling, which is President Yoon Seok-yeol’s election promise.” “I urge you to do so,” he said.
During the presidential election, President Yoon made pledges to enact a remodeling promotion law, improve vertical and horizontal expansion standards, and expand private sector participation. However, no specific system improvements have been made yet. Even in the ‘Plan to expand housing supply and supplement the construction economy to stabilize the national housing’ announced on the 10th, there was no content related to remodeling.
While the pace of deregulation is accelerating for reconstruction, regulations for remodeling are becoming stronger. When the Seoul Metropolitan Government released the ‘2030 Seoul Apartment Remodeling Basic Plan’ last year, horizontal extension remodeling, which might have been carried out only through the first safety diagnosis, will now also require a second safety diagnosis.
Remodeling projects are experiencing setbacks in many places due to the recent real estate recession and rapid increases in construction costs. Sanbon Complex 8 in Gunpo-si, Gyeonggi-do selected Ssangyong Engineering & Construction as the preferred bidder for construction in July 2022, but the project is being delayed as Ssangyong Engineering & Construction gave up. The Gangbyeon Hyundai Remodeling Association in Pungnap-dong, Songpa-gu, Seoul began selecting a construction company in May 2022, but when no construction company showed interest following a year and a half, it began dissolution procedures last month. Kim Je-kyung, director of Tumi Real Estate Consulting, said, “Depending on the situation of each complex, reconstruction may be advantageous or remodeling may be better,” and added, “Even complexes that were previously pursuing remodeling should be provided with policy support so that they can complete the project.”
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