Taiwan updates urban renewal laws to address small-scale building risks

Taiwan is undergoing a significant shift in its urban renewal policies as the government seeks to address the risks associated with small-scale redevelopment. Under the ‘Urban Renewal Act 2.0’, the Ministry of the Interior is proposing amendments to reduce floor area ratio incentives for small sites under 500 square meters. This move aims to transition from a speed-oriented approach to one that prioritizes urban disaster prevention and larger-scale neighborhood integration.

Small-scale projects, often referred to as ‘paper houses’ due to their narrow and deep footprints, face unique structural challenges. These buildings are more vulnerable to seismic activity, as they often rely on fewer support columns, increasing the risk of collapse if a single structural element fails. Additionally, construction in dense urban areas poses risks to neighboring properties and faces difficulties regarding labor shortages and high unit costs.

In Taipei, new management models are emerging to handle these small sites. One recent project in the Guangfu South Road area involves a 90-坪 (approx. 315 sqm) site where landowners opted for a full-service management model rather than traditional joint construction. This approach allows landowners to maintain more control over product planning and costs while utilizing professional teams to manage financing, design, and construction quality, often with third-party oversight to ensure structural safety and transparency.