In Busan as well, the urban public dwellings complex project is spreading. The urban complex project is a method to speed up the supply of dwellings by applying special cases such as higher floor area ratios to old urban areas where private redevelopment was difficult due to low business feasibility. The urban complex project, which had been promoted mainly in Seoul and the greater capital area, is expanding to major station areas in Busan.
According to the maintenance industry on the 24th, an urban complex project totaling 3,796 households is underway around Sajik Station and Suan Station in Dongnae District, Busan. Around Sajik Station, 1,733 households are planned, and around Suan Station, 2,063 households are planned, respectively.
The urban complex project targets areas in the city where private-led maintenance projects have been delayed due to low business feasibility. Since the system was introduced in 2021, the government has been expanding related projects to increase the supply of dwellings. In particular, recently, regulations were eased to allow not only Korea Land & Housing Corporation (LH) but also REITs (real estate investment trusts) and trust companies to participate as project implementers.
The project site around Sajik Station is in the area of 487 Sajik-dong, Dongnae District. The area is 43,331㎡ (about 13,107 pyeong). It is close to Sajik Station on Busan Metro Line 3 and adjacent to Sajik Sports Complex. Nearby are large apartment complexes such as Sajik Lotte Castle The Classic and Ssangyong The Platinum Sajik Asiad.
Here, residential facilities of 7 buildings ranging from 3 floors underground to 49 floors above ground are planned. A total of 1,733 households will be supplied, combining 1,469 apartment households and 264 officetel households.
The project around Sajik Station will be pursued as a project REITs method. Sajik Urban Link Urban Complex Development REITs, established by United Partners Asset Management, is proceeding with the consent process from land and other owners to secure eligibility as the project implementer.
A REITs official said, "We began collecting consent forms last month," and noted, "We are explaining the project promotion method and procedures to land and other owners through resident briefings."
For a REITs or trust company to be designated as the implementer of an urban complex project, it must obtain the consent of at least two-thirds of land and other owners and more than one-half of the total land area.
An urban complex project is also underway in Suan-dong around nearby Suan Station. On a site area of 57,233㎡ in the area of 6-1 Suan-dong, Dongnae District, there are plans to create 2,063 households. Korea Real Estate Investment & Trust Co. (KOREIT) was selected as the expected project implementer for this area in Sep. last year. Subsequently, in Mar., it also proposed initiating the development plan to Dongnae District.
According to the city of Busan, KOREIT plans to install apartments, base facilities, and living infrastructure in this area with a building-to-land ratio of 48.42%, a floor area ratio of 549.98%, and up to 49 floors (height under 150 meters). The planned project period is five years from 2030 to 2035. Busan said it will review the development plan submitted by KOREIT and finalize the designation of an innovation zone district for the urban complex project and the selection of the project implementer.
Experts assess that the areas around Sajik Station and Suan Station have high locational competitiveness even within Dongnae District. Lee Young-rae, head of Real Estate Survey, said, "The area near Sajik Station has the most developed school district among Busan's inland areas, so it has high development value," and added, "Suan Station also has a location with good transportation conditions."