Sanggye District 2 residents push for 2028 groundbreaking to secure tax benefits

Residents of the Sanggye District 2 redevelopment project in Nowon-gu are targeting a 2028 groundbreaking to qualify for acquisition tax reductions under the Housing Rapid Supply Plan. During a site inspection, locals also called for more effective construction cost verification and practical relocation loan guarantees to ensure the project's success.

The Sanggye District 2 redevelopment project in Nowon-gu, Seoul, has entered a race for speed to advance its groundbreaking timeline. Following the approval of the management and disposal plan, the project is coordinating its schedule with the goal of breaking ground in 2028 to qualify for tax benefits.

According to a site inspection report by the Ministry of Land, Infrastructure and Transport, the area is planned to be transformed from its existing scale of 521 buildings into a residential complex consisting of 222 buildings with a total of 2,220 units, ranging from 4 basement levels to 28 floors above ground. Since the business implementation plan was established in September 2021, the project has reached the management and disposal plan approval stage, and residents are hoping for the earliest possible groundbreaking to maintain tax benefits.

"Aim for 2028 Groundbreaking to Receive Tax Benefits"... Demands for Realistic Relocation Loans

At the site, voices emerged calling for specific implementation measures to ensure that the government's housing supply expansion plan leads to practical benefits. This is because, under the "Housing Rapid Supply Plan" announced on August 13, Sanggye District 2 can receive acquisition tax reduction benefits if it breaks ground quickly. To meet the requirement of breaking ground within a certain period after the management and disposal plan approval, residents must accelerate the project to meet the 2028 groundbreaking target.

Demands for practical improvements in financial support also followed. Regarding relocation loans, it was pointed out that even if the government relaxes loan limits, residents can only feel the benefits if guarantees are actually executed by the financial sector. In particular, as the criteria for relocation loans in this measure have changed to be based on previous assets, opinions were presented that specific guidelines and management are needed regarding how the financial sector is applying this on the ground.

Securing Effectiveness of Construction Cost Verification is Key... Support for 31,000 Units Groundbreaking in Seoul

The issue of construction costs, the largest variable in redevelopment projects, was also treated as a major point of contention. Concerns were raised at the site that the current construction cost verification system lacks legal binding force, limiting its ability to resolve conflicts with construction companies. While acknowledging that construction costs can vary depending on site conditions, terrain, or public contributions, it was argued that practical systems must be supported to prevent construction companies from excessively raising unit prices or installing unnecessary items.

The Ministry of Land, Infrastructure and Transport stated that it recognizes these difficulties at the site are not unique to Sanggye District 2. The government plans to support the groundbreaking of a total of 72,000 units in the metropolitan area through private maintenance projects this year, and intends to manage closely so that 31,000 units in the Seoul area can break ground by the end of the year. A government official emphasized that follow-up measures will be carried out quickly to ensure that maintenance projects are not delayed due to regulations that are detached from reality.

Source: original video (YouTube)