The Korea Land and Housing Corporation (LH) announced on September 2 that it would increase staffing and shorten procedures for compensating landowners in public housing sites in the Seoul metropolitan area, including the 3rd New Towns.
The government also presented a plan through its 8·13 housing supply measures to bring forward the construction start dates for existing public housing sites by up to 1~2 years.
However, compensation, permitting, and site preparation are only some of the many stages that must lead to the actual supply of housing.
3-Line Summary
1. Shortening compensation for the 3rd New Towns is a plan in progress
2. LH announced that it would deploy 344 compensation workers
3. Construction start dates and move-in dates must be distinguished
LH’s Plan to Reduce 44 Months to 24 Months
LH announced that it would reduce the compensation period for newly initiated compensation districts from 44 months to 24 months, a reduction of 20 months. Its plan is to bring forward the basic survey and conduct it in parallel with appraisal, shortening the period from the basic survey to the start of negotiated compensation from 21 months to 9 months.
To do so, it announced plans to deploy 344 people to major supply sites in the Seoul metropolitan area and additionally hire 250 compensation specialists. It also decided to establish a Compensation Acceleration Support TFT at its headquarters to support reviews of state-owned and public land and business compensation, delays in administrative procedures, and responses to civil complaints. According to a report by SisaON, incentive payments for cooperation and compulsory performance charges were also included among the measures under consideration.
The important point here is that the 20-month reduction is not an already achieved result, but a target presented by LH. Even if the compensation process becomes faster, the project must still proceed through site preparation, housing construction starts, and construction before it can lead to actual move-ins.
Negotiated Compensation Is Underway in Gwangmyeong–Siheung
The Gwangmyeong–Siheung Public Housing District is the largest 3rd New Town project, with approximately 1,271만㎡ (1271만㎡) and a planned supply of 6만7,000 households (7000 households). LH presented it as a project targeted to begin construction next year and announced that negotiated compensation has been underway since July.
As of September 2, the contract completion rate based on the number of landowners was reported to be approximately 27%, while the compensation amount was approximately 2조4,000억 won. This figure shows that the compensation process is underway, but does not mean that construction or move-ins have been confirmed. That is because compensation is the starting stage for securing the housing site. A report by Law Issue also covered the status of negotiated compensation in Gwangmyeong–Siheung together with LH’s shortening plan.
The Government’s Construction Start Target Includes Multiple Project Districts
The government announced that it would pursue the start of construction on a total of 19만5,000 housing units (19만5000 housing units; 5000) during the current government’s term in major public housing sites in the Seoul metropolitan area, including Goyang Changneung, Namyangju Wangsuk, Bucheon Daejang, Incheon Gyeyang, Hanam Gyosan, and Gwangmyeong–Siheung. At existing public housing sites, it plans to begin construction on 2030년까지 8만9,000 housing units (9000 housing units), with some of these quantities brought forward from those scheduled for after 2031.
According to a report by Maeil Ilbo, the government seeks to bring forward construction start dates by carrying out permitting, compensation, and site preparation in parallel wherever possible. However, experts also pointed out that land compensation, consultations with local governments, relocation, and the construction of wide-area transportation networks could affect the project period.
When considering the 3rd New Towns, it is more accurate not to treat an announcement about “bringing forward construction starts,” actual construction starts, and move-ins as the same stage. The key point of this announcement is that the government intends to accelerate the process beginning with compensation in order to carry out its supply targets.
References
Tags #3rdNewTown #LH #LandCompensation #GwangmyeongSiheung #GoyangChangneung #NamyangjuWangsuk #BucheonDaejang #IncheonGyeyang #HanamGyosan #PublicHousingSite #HousingSupply #NewTownConstructionStart #SeoulMetropolitanAreaHousing