As the low birthrate, aging population and low growth trend continue, and the nationwide housing supply rate exceeds 100 percent, a number of large-scale readjustment projects are being delayed and discontinued due to various interests in each site of...
As the low birthrate, aging population and low growth trend continue, and the nationwide housing supply rate exceeds 100 percent, a number of large-scale readjustment projects are being delayed and discontinued due to various interests in each site of the readjustment project, and the number of empty houses continues to rise due to the decline of old city centers. In addition, the current "urban and residential environment readjustment act"mainly consists of large-scale readjustment projects, and the support regulations for small-scale readjustment projects are insufficient.
Therefore, the government newly enacted the "Special Act on the Maintenance of Empty House and Small House" to prepare institutional grounds for systematic readjustment of empty houses, and transferred small-scale redevelopment projects as stipulated in the current "City and Housing Environment Improvement Act" to the Act to simplify the business procedures, while increasing the expectations for small-scale housing projects
in the field to revitalize the project. Contrary to high expectations, however, there are not many cases yet that are actually being implemented.
The purpose of this study is to conduct feasibility analysis based on the calculation of proportion of small reconstruction projects based on the actual case of two small remodeling apartments, Saeyeonsan Apartment in Yeonje-gu, Busan Jin-gu, and Seongam Apartments in Seongam, Busan, in relation to small-scale reconstruction projects that are not yet new, and to understand how much the project will affect the project's feasibility based on the analysis of sensitivity to sale prices, construction costs, construction costs, and reconstruction burden based on prior research.
The main points are as follows: After analyzing feasibility of projects by calculating proportion and sensitivity to factors that affect project feasibility selected by prior research, it was found to have a large impact on project feasibility in the order of sale price, construction cost, and reconstruction burden.
Therefore, firstly, it is not possible to raise the price limit indefinitely with respect to the sale price that has the greatest impact on business feasibility, and it is necessary to take into account the restriction on the price ceiling or the situation of the sale market and the transaction. In this regard, small-scale reconstruction projects have difficulties in raising the price of new apartments due to the brand value due to the low participation of large-scale construction companies compared to large-scale reconstruction projects. Also, in order to reduce the risk of unsold apartments, the government needs to reduce construction costs by purchasing them in the form of public rental houses, and ironically increase the sale price by making them cheaper, thereby reducing the financial costs through quick construction.
Second, the project implementation takes priority at sites in semi-residential or commercial areas with relatively high floor space rates, such as the case of target areas, due to difficulties in securing project feasibility in connection with construction costs that have the second-largest impact on project feasibility. In this regard, even though construction costs of high-rise apartments are higher than those of ordinary apartments, but construction costs of small apartments are set higher than those of large apartments, the public support measures are only applied to self-regulatory or street housing readjustment projects, which are classified as excess profit recovery targets, and are excluded from public support. Therefore, policy support should be extended to small-scale reconstruction projects to reduce the burden of construction costs through low-interest support from the government or linkage with public organizations (LH, etc.) in order to reduce the burden of construction costs through reduced construction costs.
Third, the size of the reconstruction levy is small and has less impact on the projectability because it is a provincial area compared to the Seoul metropolitan area in relation to the reconstruction levy, which has the least impact on the project feasibility. However, despite the fact that there are few differences in project procedures under the same legislation compared to the similar type of street housing readjustment projects, the application of the burden of reconstruction for small-scale housing refurbishment projects should be abolished, as the project's business feasibility is worse than that of street housing readjustment projects by imposing only small-scale redevelopment projects and excluding various support benefits.
Finally, the success of small-scale redevelopment projects for improving the residential environment was not covered in this study along with the reduction of the project period due to the simplification of the institutional procedures, but it is hoped that measures such as the reduction of floor space rate and the provision of incentives will be applied to induce residents to participate in small-scale reconstruction projects voluntarily according to the project.