The government and ruling party's plan to boost housing supply by offering floor area ratio (FAR) incentives to public redevelopment sites will have limited impact, an analysis has found. About 40% of all project sites are excluded from the incentive program, and many have remained stuck in early stages for years, meaning actual housing delivery will take considerable time. Opposition lawmakers and experts say both expanding public-led supply and revitalizing private-sector projects are needed to produce tangible market effects.
According to data obtained by the Seoul Economic Daily on Wednesday through the office of Rep. Kim Eun-hye of the ruling People Power Party (PPP), only 25 public redevelopment sites are eligible for FAR incentives under the proposed amendment to the Urban and Residential Environment Improvement Act currently before the National Assembly plenary session — roughly half of all eligible sites. Of the total 43 sites (38 public redevelopment and five public reconstruction), the remaining 18 (41.9%) cannot expect FAR increases even if the bill passes. All eligible sites are public redevelopment projects; not a single public reconstruction site is included.
