Since the introduction of Residential Site Development Promotion Act in 1980, Korea has put top priority in providing residential development blocks as practical means to ameliorate urban housing problems. Nonetheless, the existing types of residentia...
Since the introduction of Residential Site Development Promotion Act in 1980, Korea has put top priority in providing residential development blocks as practical means to ameliorate urban housing problems. Nonetheless, the existing types of residential development blocks have not paid due attention to the regional variations when they supply residential areas. As the quantity issues have been more important than the quality ones, the standardized land use plans have been ubiquitous throughout the country. In addition, public and private developers have been criticized, almost without exception, as they have assigned relatively higher sale price on the commercial blocks, even though they have to endure relatively cheaper price for the residential blocks. Sometimes, in order to minimize financial burdens or enjoy development gains, developers have dared to assign the abnormally high portion of commercial areas in their land use plans. Under these circumstances, the higher vacancy rate within previously residential development blocks has been inevitable byproduct.
Focused on Cheongju Sannam-3 cases, this research analyzes the existing conditions of vacancy rate in the commercial areas within residential development blocks and suggests a series of policy alternatives geared towards revitalization of commercial areas. Judging from research findings, firstly, the root cause of abnormally higher vacancy rate comes from excessive designation of commercial areas in the land use plans. Secondly, the research presents that the higher vacancy rate is directly related to the poor accessibility. For as specific evidence, neighboring residents has to endure inconvenience when they wish to stop by these commercial areas. Thirdly, this research finds out the fact that initially higher rent which would reflect the higher land and construction cost has resulted in the higher vacancy rate. In the last part, this research suggests a series of policy alternatives in the three dimensions of institution building, physical setting, and marketing.