Housing reconstruction projects are significant not only because obsolete and poor houses are improved into better-to-live new houses but also because they generate some economic benefits. Nevertheless, due to the various regulations imposed by the go...
Housing reconstruction projects are significant not only because obsolete and poor houses are improved into better-to-live new houses but also because they generate some economic benefits. Nevertheless, due to the various regulations imposed by the government in the process of housing reconstruction, reconstruction cooperative members' developmental benefits are decreased, while housing supplies are delayed only to cause serious side-effects over the entire society.
The only method of expanding the housing supplies without construction of new basic regeneration facilities in the existing downtowns in Seoul, Incheon or other metropolitan cities is housing reconstruction or redevelopment. However, the Participatory Government judged that the overall rise of the apartment housing prices, particularly those in the reconstruction zone, in the capital areas had been attributable to the real estate speculations, and attributed all responsibilities to the reconstruction markets without any theoretical proof, and thus, began to regulate the reconstruction projects. As a result, the reconstruction projects had been seriously impeded, while the housing prices had skyrocketed ironically whenever the government regulations had been published. In addition, the government could not analyze the correct causes for skyrocketing real estate prices, while insisting on the regulations, only to make people suffer and distrust the government policies. Such regulations of the reconstruction as strengthened standards for safety diagnosis, limited transfer of cooperative membership, obligated construction of rental houses, etc., served to check the speculative demands for reconstructed houses and thereby, stabilize the housing prices in shorter term, but in a longer-term, they would serve to reduce the housing supplies, delay the reconstruction projects and after all, worsen the social problems caused by unbalanced housing supplies and demands.
With such basic conceptions in mind, this study was aimed at analyzing the problems of the various regulations introduced to check the rising housing price and thereby, exploring the ways to activate the reconstruction projects.
In order to check the real estate speculations, stabilize housing prices and resolve ordinary people's unstable housing life, the following reform measures were put forwards; first, it is necessary to expand the housing supplies through reconstruction projects in such regions equipped well with the urban regeneration facilities and educational and cultural facilities as Gangnam, Seoul; second, it is essential to reform the procedures for reconstruction projects regarding initial fund-raising, timing and method of safety diagnosis; third, it is necessary to compensate the constructors for construction of the rental houses and activate the reconstruction projects by lowering the construction cost; fourth, it is desirable to abolish such poisonous regulations painful to people as limited transfer of the cooperative membership.
Lastly, it is hoped that the desirable systems introduced by Urban Regeneration Act and the new systems will be operated from a longer perspective to activate the reconstruction projects and that the positive functions of the reconstruction projects anticipated by Urban Regeneration Act will be activated.