The street based housing redevelopment project began with the need to repair aging houses and poor buildings in the city center as part of urban regeneration. Korea's urban areas developed rapidly with high economic growth rates, in which many houses ...
The street based housing redevelopment project began with the need to repair aging houses and poor buildings in the city center as part of urban regeneration. Korea's urban areas developed rapidly with high economic growth rates, in which many houses were aged or neglected without proper management. These houses deteriorated the quality of life of residents and negatively affected the overall image and environment of the city. Therefore, various projects were implemented to repair old houses and improve the city center, one of which is the street based housing redevelopment project.
The street based housing redevelopment project was introduced on February 1, 2012 through the revision of the Urban and Residential Environment Maintenance Act. If the existing large-scale redevelopment or reconstruction method caused large-scale migration and resettlement problems, the street based housing redevelopment project improved the residential environment while solving these problems. This project has the advantage of being able to be carried out quickly due to its advantage in resettling natives and simplifying procedures.
However, the street based housing redevelopment project needed some public support to revitalize the project due to the relatively small size of the project, which did not have much general distribution, and it was difficult to promote projects such as financing. Recognizing this situation, the government granted various benefits such as easing building regulations. As a result, the number of workplaces in the stage of approval for union establishment has been increasing nationwide since 2016, but its performance is still sluggish compared to social needs and policy expectations. In addition, it was expected to promote the project quickly through the simplification of administrative procedures, but even the speed was not well achieved and stagnated due to delays or suspension in the maintenance area.
Despite the government's steady policy support and simplification, this study sought to shed light on the poor completion performance since its introduction and the reason for stagnation due to delays or suspension in the maintenance area. The purpose of the study is to analyze the factors affecting the promotion of the street based housing redevelopment project, and to this end, case analysis and interviews with related parties were conducted for workplaces and completion sites in Gangnam-gu, Seoul. The results are summarized as follows.
First, it was found that the market environment had the greatest impact on the promotion of street based housing redevelopment project. All three selected as case areas incurred additional construction costs due to rising raw material prices, but the project proceeded smoothly when the real estate market overheated due to low interest rates and active housing transactions. However, when market conditions are sluggish, such as rising interest rates, construction costs, and the real estate recession, market environmental factors have a direct impact on business progress.
Second, local business conditions turned out to be an important factor. Due to its narrow size, street based housing redevelopment projects are limited in raising the floor area ratio or securing general sales. In addition, if small and medium-sized construction companies participate, the conversion to brand apartments will be limited. This situation is not only difficult to expect an increase in value through the effect of brand apartments, but also because the floor area ratio, general sale, and brand apartment construction are closely linked to the profitability of the project, local business conditions have an important impact on the promotion of street based housing redevelopment projects.
Third, the cooperation of residents was identified as an important factor in the progress of street based housing redevelopment projects. This was investigated from two perspectives: resident cooperation necessary for the establishment of the union and cooperation in the process of promoting the project. All three selected as case areas met the consent rate for the establishment of the union, but conflicts within the union, the developer, and the union occurred during the project promotion, causing a temporary stagnation in the project progress.
Finally, it is institutional conditions. The government continued to support institutional easing to revitalize street based housing redevelopment projects, but the effect was not significant in this study. Rather, it has been confirmed that simplified administrative procedures for rapid project promotion cause conflicts with the union. Since the first step of the street based housing redevelopment project is the establishment of a union due to the omission of the procedure of the promotion committee, it was confirmed that conflicts between the union, the developer, and the construction company occurred.
In conclusion, as a result of studying the factors affecting the promotion of street based housing redevelopment projects through this study, it was confirmed that they were influencing in the order of market environment, local business conditions, residents' cooperation, and institutional conditions. Accordingly, in order to revitalize and promote street based housing redevelopment projects, these factors should be carefully considered, and in particular, it is necessary to understand the ability to flexibly respond to fluctuating market conditions and local business conditions. In addition, residents' cooperation and institutional support will also play an important role in the success of the project.