South Korea weighs higher floor area ratios in 3rd-generation new towns to add homes
In short
LH president Lee Seong-hun told President Lee Jae-myung on 20 October that the average floor area ratio in the 3rd-generation new towns could be raised from about 206% to 250% or more. Chosun Ilbo reported the change could add about 38,000 homes. A government official said no specific areas or volumes have been set.
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Lee Seong-hun, president of Korea Land & Housing Corporation (LH, 한국토지주택공사), reported to President Lee Jae-myung on 20 October at the Incheon Gyeyang site of the 3rd-generation new towns that the average floor area ratio could be raised to 250% or more. Yonhap and Asia Economy quoted him as saying the current average is about 206% and that the ratio and adjacent sites would be expanded to increase supply. [ 1 , 2 , 3 ]
Chosun Ilbo reported that raising the average from 205% to 250% would add about 38,000 homes, comparable to the roughly 42,000 homes of the 1st-generation Pyeongchon new town. It said the change would apply to 172,000 homes due to start construction by 2030 in eight districts, raising the total to about 210,000. It explained that the ratio is total floor area divided by land area, so a higher figure allows more homes on the same land. [ 2 ]
Yonhap reported that a government official said the ratio had long been under review as a way to build more homes faster, but that specific areas and volumes have not been decided. A MOLIT official said districts already with announced construction plans cannot be disrupted. The official said later districts could be more flexible, but the target areas will be set with LH and may not be limited to them. [ 1 ]
Yonhap named Gwangmyeong-Siheung, Uiwang-Gunpo-Ansan and Hwaseong Jinan as relatively well placed for a rise, since Incheon Gyeyang is close to first move-ins. Asia Economy noted that Hwaseong Jinan is the only district whose plan is not yet confirmed. It said Gwangmyeong-Siheung and Uiwang-Gunpo-Ansan could also see higher ratios. It also named Pyeongtaek, Osan and Guri sites still being planned as candidates. [ 1 , 3 ]
Chosun Ilbo said the change does not need a legal amendment, but local urban plans and infrastructure talks would have to be repeated. Asia Economy said a district unit plan change takes at least six months and can take years. It added that residential land in the new towns was planned at 160% to 220%. Yonhap noted warnings that adjusting transport, water and sewage, and school capacity could lengthen projects and delay supply. [ 1 , 2 , 3 ]
Dankook University professor Jeong Jae-hoon proposed raising the average ratio to 300%. Yonhap cited his simulation that raising six districts from 194.1% to 300% would add about 64,000 homes. Chosun Ilbo gave a simple calculation of about 80,000 more homes at 300% and said it could absorb relocation demand from Seoul redevelopment. Chosun Ilbo also reported concerns about traffic congestion, school and park shortages, and lost demand in second-generation towns. Asia Economy said the effect on the market would be limited because the change is expected only in districts without a finalised plan. [ 1 , 2 , 3 ]
Why it matters
The plan would raise housing supply around Seoul without new land, according to Chosun Ilbo. Outlets note that changing existing plans and adding infrastructure could take time, so the effect on supply is uncertain.
Key facts
- Lee Seong-hun (이성훈), president of Korea Land & Housing Corporation (LH, 한국토지주택공사), reported the plan to President Lee Jae-myung at the Incheon Gyeyang site on 20 October. [ 1 , 2 , 3 ]
- Lee Seong-hun said the average floor area ratio of the 3rd-generation new towns is about 206% and should be expanded to 250% or more, with adjacent sites also added. [ 1 , 3 ]
- Chosun Ilbo reported that a rise from 205% to 250% would add about 38,000 homes, on top of 172,000 homes due to start construction by 2030 in eight districts. [ 2 ]
- A government official said specific areas and volumes have not been decided. [ 1 ]
- Chosun Ilbo reported that the change needs a district plan revision, not a change in law. [ 2 ]
- Asia Economy reported that changing a district unit plan takes at least six months and can take years. [ 3 ]
Confirmed by several sources
- Lee Seong-hun presented the plan to raise the average floor area ratio of the 3rd-generation new towns to 250% or more to President Lee Jae-myung at Incheon Gyeyang on 20 October. [ 1 , 2 , 3 ]
- The Ministry of Land, Infrastructure and Transport (MOLIT) said it will review which districts could be covered, working with LH and without disrupting announced construction schedules. [ 1 , 2 , 3 ]
- Raising the ratio would require infrastructure such as transport, schools and water and sewage to be adjusted, which could delay supply, according to the outlets. [ 1 , 2 , 3 ]
Still unclear
- Which districts will be covered and how many homes will be added. A government official told Yonhap that specific areas and volumes have not been decided.
- The current average floor area ratio. Yonhap and Asia Economy give 206%; Chosun Ilbo gives 205%.
- Whether districts already under construction or with finished designs can be included. Chosun Ilbo and Yonhap quote MOLIT officials saying this will be examined with LH; Asia Economy expects selective application to districts without a confirmed plan.
- How much extra housing a 300% ratio would bring. Chosun Ilbo cites about 80,000 more homes by simple calculation; Yonhap cites a simulation by Dankook University professor Jeong Jae-hoon of about 64,000 more homes across six districts. These are proposals, not government figures.
What local media are saying
Timeline, local time
- Yonhap published its report on 21 October that the government will review raising floor area ratios in the 3rd-generation new towns. [ 1 ]
- Chosun Ilbo published its report on 22 October with estimates of the homes that could be added. [ 2 ]
- Asia Economy published its report on 22 October on the limited effect on supply. [ 3 ]