In these days, reconstruction projects of blighted apartments by private sector is an active progress in Seoul. But, it has far-reaching negative effects such as excessive high density of urban residential district and such a tendency in the reconstru...
In these days, reconstruction projects of blighted apartments by private sector is an active progress in Seoul. But, it has far-reaching negative effects such as excessive high density of urban residential district and such a tendency in the reconstruction projects results from economic profit.
The purpose of this study is clarifying negative results of current reconstruction projects and to suggest improvement schemes in the current situation.
The problems in the reconstruction projects are so serious in Seoul.
First of all, the government is very short-sighted. In the future 20-30 years, it will be expected that reconstructed apartments will be slammed and the government will have to take a responsibility for their policy in housing.
The cause of problem is that current reconstruction apartments are deeply developed in high density. After reconstruction apartments become old, it cannot be reconstructed again. Because it has been already developed to their maximum potential.
In this study, I think reconstruction business problems originate from individual economic profit. Therefore I focus on the economic factor in reconstruction business. I have collected numerous data of reconstruction apartment project. In analysis of this data, I extracted factors that can control benefits in reconstruction business.
There are following factors;
1. difference in the rate of building volume to lot
As the planning rate of building volume to lot increases, the development profit go up.
As the land price grows higher, the development profit go up.
2. house scale
As the origin house scale becomes larger, the development profit go up.
3. the reconstruction site scale
As the reconstruction site scale become bigger, the development profit go up.
In conclusion, I would apply these factors to reconstruction profit change factors and suggest the improvement scheme.