Park Hapsu, co-chair of the Korea Real Estate Experts Club (adjunct professor at Konkuk University Graduate School of Real Estate), identified the 'station area revitalization project' promoted by the Seoul Metropolitan Government as a niche market in real estate.
Chairman Park noted during the 3rd forum of the Korea Real Estate Experts Club, held on the afternoon of the 21st, that 'through the station area revitalization project of the Seoul Metropolitan Government, the floor area ratio can be raised to a maximum of 1100%' and added, 'it is an attractive policy for real estate developers and can be viewed as a niche market in real estate.'
Chairman Park stated, 'unlike other station area projects, the station area revitalization project allows for the change of use to central commercial.' He also mentioned that 'the scope of application has been expanded to the arterial roads (line-type commercial areas).'
The station area revitalization project is one of the station area-related projects that the Seoul Metropolitan Government is promoting. The station area projects consist of four types based on their purpose: station area revitalization project, station area complex development (high-density housing), youth housing assurance, and long-term lease housing in station areas.
The station area revitalization project aims to realize a compact city through the complex development of underutilized or low-activated areas. The key elements are increasing the zoning area (increased floor area ratio), private utilization, and expansion of necessary facilities in the area. Half of the increased floor area ratio will be carried out as private projects, and the other half will be conducted as public contributions. Unlike other station area projects, urban maintenance redevelopment projects are possible, allowing for a change of use to central commercial.
The Seoul Metropolitan Government expanded the target areas for the station area revitalization project last March. Previously, the project area was limited to 250m from the station, but this has been increased to 350m in cases where it is a regional center or transfer station. Major arterial roadways (line-type commercial areas) were also included in the target areas.
Meanwhile, the Korea Real Estate Experts Club, which consists of experts in the real estate field such as project implementers, architects, appraisers, tax accountants, lawyers, finance professionals, construction companies, certified real estate agents, and investors, was launched last February. Professor Park and Mo Hyun-sook, president of the Korea Real Estate Investment Advisory Association, along with Jo Yong-moon, CEO of the real estate artificial intelligence (AI) service 'Blue Bear,' serve as co-chairs, and the club conducts real estate-related lectures once a month.