Third-Generation New Towns to Get Higher Floor-Area Ratios, but "Limited Impact on Housing Supply"

Plan to Expand Housing Supply Through High-Density Development
Selective Application to Districts Without Finalized Development Plans
Administrative Procedures and Infrastructure Must Be Considered

The government is seriously considering raising floor-area ratios during the development of third-generation new towns as part of efforts to expand housing supply. The plan is to increase development density and thereby provide more homes. However, critics say the impact on the market may be limited, as the measure is expected to be applied selectively only to districts whose development plans have not yet been finalized.

The proposal to raise floor-area ratios has drawn attention since Lee Seonghun, president of the Korea Land and Housing Corporation (LH), said on October 20 at the Incheon Gyeyang New Town, "We will significantly raise the average floor-area ratio in third-generation new towns from the current 206% to 250% or higher."

Third-generation new towns are public housing districts designated in areas near Seoul, including Namyangju (Wangsuk and Wangsuk 2), Hanam, Incheon Gyeyang, Goyang Changneung, and Bucheon Daejang. Additional districts have also been designated in Gwacheon, Gwangmyeong, Uiwang, and Hwaseong. High-density development through higher floor-area ratios in third-generation new towns has long been discussed as a way to increase housing supply. Under the government's August 13 measures, the flight safety zone in Goyang Changneung was lifted, easing height restrictions and allowing floor-area ratios to be raised in 12 blocks. The plan, which initially called for 9,564 homes, is set to add 2,561 more.

However, it would be difficult to raise floor-area ratios across the board. Revising existing development plans takes considerable time, and expanding infrastructure to accommodate a larger population is also a major challenge. Development plans for apartment sites in third-generation new towns have already been drawn up with floor-area ratios of around 160% to 220%, making it practically difficult to apply changes at sites where construction is already well underway.

Changes to district-unit plans must go through a set process, including drafting, gathering public feedback, and deliberation. The process takes at least six months and can take several years. Regarding higher floor-area ratios, a Ministry of Land, Infrastructure and Transport official said, "We are reviewing conditions at each site on the premise that the previously confirmed supply schedule will not be delayed or disrupted."

President Lee Jaemyung visits the Incheon Gyeyang Public Housing District on the 20th to inspect the site of a third-generation new town project. Blue House Correspondents' Photojournalists, Yonhap News

Hwaseong Jinan is the only third-generation new town whose district plan has not yet been finalized. Plans for the other districts were approved and announced between 2021 and recently. Floor-area ratios may also be raised in large-scale public housing sites that have finalized district plans but are still in the relatively early stages of development, such as Gwangmyeong-Siheung and Uiwang-Gunpo-Ansan, where land compensation is underway. Move-ins at Hwaseong Jinan and Gwangmyeong-Siheung are scheduled for well after 2031. Large-scale housing sites whose district plans are still being drawn up, including Pyeongtaek Jije Station area, Osan Segyo, and Guri Topyeong, are also being considered as candidates, although they are not classified as third-generation new towns.

Raising the maximum floor-area ratio does not automatically increase the number of homes supplied. In addition to administrative procedures, authorities must consider transport networks such as roads and railways, as well as the capacity of infrastructure such as schools and water and sewer systems. Third-generation new towns were envisioned from the outset as expandable, connected new towns supported by rail-centered regional transport networks, including the Great Train eXpress (GTX). If congestion on major arterial roads or regional transport networks exceeds their design capacity, authorities must draw up regional transport improvement measures, such as building additional roads or grade-separated interchanges.

Kim Hyunsoo, a professor at Dankook University, said, "Existing district plans set the capacity of parks, schools, water supply, and sewage systems in proportion to the originally planned number of homes, so revising them will take time." He added, "Floor-area ratios should be raised further, particularly in areas with strong regional transport links, such as Goyang Changneung, Namyangju Wangsuk, and Uiwang-Gunpo-Ansan, as well as Hanam Gyosan, where urban rail lines are being extended."

This content was produced with the assistance of AI translation services.