Seoul city said it will not allow an upgrade of the land use zone for the Hyundai Department Store Apgujeong main branch. Hyundai Department Store had planned to expand the Apgujeong main branch by changing the category 3 general residential zone to a quasi-residential zone. If it becomes a quasi-residential zone, the floor area ratio increases, allowing taller construction.
According to Seoul city on the 29th, the "detailed development plan decision for special planning zone 7 (Hyundai Department Store) within the Apgujeong apartment district" was put on hold at the city architecture joint committee meeting in Dec. last year. A Seoul city official said, "When drawing up a district unit plan, uses are designated for each piece of land, and the Hyundai Department Store site within the Apgujeong apartment district was designated as both a category 3 general residential zone and a special planning zone," adding, "The committee determined there was little reason to change the use zone by violating the existing planning guidelines."
The Hyundai Department Store site is located at 429 Apgujeong-dong, Gangnam-gu, with an area of 10,473 square meters. In a category 3 general residential zone, large commercial facilities with a total floor area exceeding 3,000 square meters are not permitted, but the city applied an exception when crafting the district unit plan.
Hyundai Department Store moved to upgrade the use zone because, as reconstruction of the Apgujeong apartment complex gains momentum, the need for development such as reconstruction and expansion has increased. Apgujeong district 2 (Shinhyundai phases 9, 11 and 12), which borders the Apgujeong main branch, is set to be transformed into apartments up to 65 stories, totaling 2,571 units. Reconstruction is underway in all the other districts as well.
If the use zone is upgraded, a relaxed floor area ratio would allow building expansion. The legal maximum floor area ratio for a category 3 general residential zone is 250%, but it rises to 400% in a quasi-residential zone. Hyundai Department Store is said to have submitted to the city a plan to expand the building by applying a floor area ratio of around 400%. Applying a 400% floor area ratio and a 50% building coverage ratio would allow an increase to eight stories. The current maximum height is five stories. This area is designated as a view boulevard specialized landscape district.
However, with the city's disapproval making an upgrade of the use zone difficult, a change in the reconstruction plan for the Hyundai Department Store Apgujeong main branch has become inevitable. The key issue appears to be public contribution. Public contribution refers to setting aside part of the revenue from redevelopment or reconstruction for the public, such as building roads and parks or providing equivalent cash. Under Seoul's local government ordinance on urban planning, even for buildings within a view boulevard specialized landscape district, an extension up to eight stories is possible if, after review by the architecture committee or the landscape committee, it is deemed to meet urban landscape, aesthetics and public interest. Hyundai Department Store proposed to make a contributed acceptance of 7.5 billion won for road construction and 122.8 billion won for providing building installations, but the city recommended reconsideration.
A real estate development industry official said, "A quasi-residential zone allows for mixed-use complexes near stations, officetels and commercial facilities, so its commercial utility is high and land prices are more expensive," adding, "From a long-term perspective, a quasi-residential zone is seen as far more useful for mixed-use development, which appears to be why a use zone change was pursued."