The purpose of this research is to analyze resettlement possibility of Housing Cooperative Members as Original Resident (HCMOR) according to the cost of housing redevelopment reduced through mitigation of resettlement cost. Reduction of construction c...
The purpose of this research is to analyze resettlement possibility of Housing Cooperative Members as Original Resident (HCMOR) according to the cost of housing redevelopment reduced through mitigation of resettlement cost. Reduction of construction cost and adjustment of supply unit have been proposed to mitigate resettlement cost. The research has been conducted on 21 Housing Redevelopment Projects (HRP) and 19 Housing Construction Projects (HCP) executed by Seoul Metropolitan Government. Resettlement possibility has been analyzed on 14 HRPs. The resettlement possibility was quantified by the ratio of property. The ratio of property is a ratio of Price of Right divided by Sale Price for Housing Cooperative Members which implies HCMOR’s relative amount of asset to a sale price of a house for installment sale. Resettlement possibilities were analyzed within a feasible range of ratio of property for resettlement. The feasible range of the ratio was derived from the rate of resettlement of HRPs in Seoul.
Basic factors assessed from a base analysis are as follows:
A. Average Price of Rights of HCMOR is about KRW 290 million.
B. Sales price for Housing Cooperative Members ranges from KRW 100 million to KRW 1.1 billion.
C. Average resettlement cost is about KRW 140 million.
D. Ratio of property feasible for resettlement is 0.65.
E. Resettlement possibility based on a rate of property in the subject area is 35.7%
Three situations were applied to analyze how the resettlement possibility changes. In the first situation, additional cost of construction is saved. The second situation is to adjust size of supply unit of a house for installment sale to decrease the sales price for HCMOR and to increase Price of Right.
Situation 1. To save additional construction cost
Construction cost of HCP and HRP have been compared to determine the additional construction cost for HRP. Because of difference in construction size of each HCP and HRP, construction cost per square meter has been used as a standard comparison unit. Seasonality has been adjusted by applying Construction Cost Index. Effect of size of the project on a unit construction cost has been verified through correlation analysis. T-test has been used to compare average unit construction cost of each project.
Situation 2. To change size of supply unit of a house for installment sale
Sale price for HCMOR and their Price of Right has been recalculated with changing size of supply unit for HCMOR. Also, sensitivity of resettlement possibility to the size of supply unit has been analyzed with a unit reduce of 3.3 square meters. Size of supply unit reduces from 3.3 square meters to 16.5 square meters.
Situation 3. To change of both construction cost and size of supply unit
Resettlement possibility has been analyzed when the saving of construction cost concurred with the change of size of supply unit. This is a combined situation of previous two situations.
The results of the research are as follows:
1. HRP costs 123,907 KRW more per square meter than HCP. With saving of the cost, mean of Proportions to Disposal of Property was enhanced 14.24%. The increase of Proportion to Disposal of Property led to increase of Price of Right and Ratio of Property subsequently. Eventually, resettlement possibility has been increased as 455 out of 4,619 HCMOR could afford the resettlement which means 9.6% increase of the possibility.
2. When the size of supply unit decreased from 3.3 square meters to 16.5 square meters, Proportion to Disposal of Property has increased. As a result, adjustment of size of supply unit resulted in enhancement of resettlement possibility. When 3.3 square meters of supply unit adjusted, 199 out of 4,619 HCMOR turned to be possible to resettle. This is 4.3% increase. Sensitivity of resettlement possibility was analyzed at 4.9% per unit change of the size.
3. When the additional construction cost were saved and size of supply unit adjusted by 3.3 square meters, mean of Proportion to Disposal of Property has increased from 18.01% to 38.12%. With the size adjustment by 3.3 square meters, resettlement possibility has improved 13.4% in average. With the adjustment by 6.6㎡, 9.9㎡, 13.2㎡ and 16.5㎡, the possibility has increased 17.0%, 21.5%, 26.0% and 30.4% respectively. These increases are smaller than in the previous situations. So it is implied that saving of construction cost and adjustment decreasing of size of supply unit trade off negatively.
In HRP, saving of construction cost and adjustment of size of supply unit increase resettlement possibility of HCMOR. This result would be used for a research or a governmental policy to enhance the resettlement possibility.