Seoul plans to ease the base floor area ratio for station area dwellings projects by up to 30% to boost the supply of long-term jeonse dwellings.
Oh Se-hoon, the Seoul mayor, visited the Singil station area zone at 39-3 Singil-dong in Yeongdeungpo District on the morning of the 17th and announced a "station area dwellings revitalization plan" with these details. Oh said, "We will relax the operating standards for station area dwellings and grant bold incentives that will firmly provide collateral for business feasibility," adding, "We will quickly supply dwellings in areas preferred by residents."
Station area long-term jeonse dwellings is a project that supplies high-quality rental and for-sale dwellings for young people, newlyweds, and people without dwellings through high-density development in areas with convenient transportation near subway stations. The city provides incentives to private developers, such as increasing the floor area ratio.
The Singil station area zone that Oh visited that day has been moving forward with a goal of breaking ground in June 2029 on 999 households (337 long-term jeonse households), following a combined review next month and approval for project implementation in June next year after approval to establish an association in 2021. Initially designated as an urban environment maintenance zone in 2018, the project was delayed due to deteriorating business feasibility caused by expenses such as installing soundproof walls.
To speed up supply, the city decided to raise the base floor area ratio by up to 30%. In areas with relatively low officially assessed land prices and thus weaker business feasibility, a correction factor will be applied to add up to an additional 10% to the floor area ratio. The city said that when incentives are applied, the estimated proportional rate (a metric to check business feasibility) rises 12%, and the additional contribution per association member is expected to be reduced by about 70 million won.
The project's target map will also be expanded. Previously limited to within 500 meters of a subway platform boundary, it will be expanded to "within 200 meters from the boundary of an arterial road intersection at least 20 meters outside the station area." With locations close to transportation infrastructure included in the project scope, about 239 sites citywide and about 92,000 households across Seoul are expected to be newly incorporated.
The project period will also be shortened. The procedures previously divided into preliminary review and plan review will be integrated into a "preliminary (plan) review." The city plans to shorten the project period by more than five months. In addition, when calculating the consent rate for the preliminary review of the maintenance plan, state-owned and public land will be excluded to reduce the burden of securing consent, and if unavoidable reasons arise, the period can be further extended at the discretion of the proponent (district mayor).