1. Introduction
Urban construction projects impact the environment negatively, such as through demolition waste, construction waste, noise, dust, and vibration, which result in civil complaints and, in turn, schedule and cost overruns [
1,
2,
3,
4]. To mitigate these problems while improving the project performance, the construction industry has adopted offsite construction (OSC) methods [
2,
3]. In OSC projects, construction work is performed in a factory environment instead of onsite [
5]. OSC is, therefore, considered promising compared with conventional construction methods [
6,
7].
Modular construction is a promising OSC method [
8]. In this method, a significant proportion of construction work is conducted in a factory rather than onsite, resulting in reduced civil complaints, construction duration, waste, and cost while providing higher quality. Therefore, this method is considered an effective and sustainable solution for dealing with the growing housing demand in urban areas [
2,
9,
10]. In particular, modular construction is being used in cities such as Hong Kong, Singapore, and Melbourne to rapidly and efficiently construct buildings in both the private and the public sectors [
10,
11].
Seoul is a densely populated urban area and has seen increasing public housing demand, especially in the central urban area. The public housing supplier of Seoul (PHSS) is supplying housing to meet this demand; nonetheless, its average inventory rate remains lower than that of other OECD countries [
10]. To increase supply, the PHSS is planning to adopt a development scheme that uses a small-scale site acquired from either the public or the private sectors in a central urban area. It is also planning to use modular construction methods for supply. By use of unit production in a factory, it is expected that development can be effectively conducted without negative environmental impacts [
12,
13]. To validate the applicability of this approach in urban areas, exemplar modular projects have been conducted, and these were shown to result in reduced civil complaints and disruptions to nearby public services [
10].
In spite of the adoption plan of the government and its applicability, the Korean construction industry remains hesitant to adopt modular construction methods, and these conservative attitudes are affecting the sustainability of modular housing supply. The main reason for this hesitation is negative perceptions related to high costs [
11,
14,
15]. To overcome these perceptions and promote modular construction, the UK, Australia, Hong Kong, and Singapore governments, all of which have effectively implemented modular construction, have publicized the long-term direction of their housing supply plans [
11,
15]. Contractors can accordingly develop a plan that delivers a return on the high initial cost and that mitigates the higher project cost by achieving economies of scale [
15].
Therefore, the PHSS must develop a long-term plan and demonstrate the feasibility of small-scale public modular housing (SSPM). Previous studies evaluated single or multiple modular projects to determine the feasibility or identify drivers and barriers of modular construction. These studies emphasized the importance of the government’s role in promoting modular construction to realize economies of scale [
14,
16,
17,
18]. However, the realization of a promotion plan or policies for modular construction was not included in the scope of the studies. To develop a plan, the PHSS must estimate the total number of applicable sites across Seoul for securing sustainable demand. Based on the developed plan, the practitioners can be conceived to invest the initial cost. Furthermore, it must be proven that a given project can be carried out feasibly and can overcome negative perceptions at an applicable site.
In this light, the present study has the following objectives: (1) to estimate the number of applicable sites in Seoul and (2) to evaluate the feasibility of these applicable sites. First, a preliminary study is conducted to identify the demand for SSPM, barriers to the uptake of modular construction, and efforts in other countries. Second, a framework is suggested for achieving these objectives. Then, the application of the framework is explained through case studies. The research scope is limited to government-owned sites, and the housing demand is limited to one- or two-person households for which a standardized modular unit is suitable. Finally, the number of applicable sites and the size of potential projects are estimated. This study makes the following contributions: (1) develop a basis for a long-term housing supply plan using modular construction by estimating the number of applicable sites from an urban perspective, (2) mitigate negative perceptions related to higher costs, and (3) improve public housing welfare by securing profitability based on feasibility analyses.
5. Discussion
5.1. Project Productivity Improvement for SSPM
To overcome the negative perception of modular construction and to supply SSPM in the urban area of Seoul, a long-term plan of the Seoul government should be developed. To develop the plan, the number and feasibility of applicable sites in Seoul should be estimated. The framework of this research was used to estimate the number of potential sites for SSPM and to develop the long-term plan from an urban perspective. Although the selected cases were profitable, the project efficiency could be improved by exploiting the features of the selected sites. Sites of Types 1 and 3 were clustered in a specific area, and the sites of each type were similar in terms of features such as the site area, type of residents, and specification of units. Therefore, if the projects at these sites are carried out simultaneously, economies of scale can be achieved, and the project efficiency can be improved. This is one of the differences between other studies focusing on a single project feasibility estimation.
The Korean government develops a comprehensive project plan every year by combining all local governments’ construction project plans, which are announced and bid for through the central government system. The local governments have to submit their yearly project plans to the central government by 15 January. Therefore, local governments can highlight projects that are suitable for SSPM and can select a project progress method that is suitable for modular construction. In this phase, if a comprehensive plan that includes clustered sites is developed, the efficiency of each project can be improved because the components can be standardized, and project management costs can be reduced. Therefore, the research framework can also be used for developing comprehensive plans.
5.2. Using Research Framework to Promote SSPM
The countries that intended to promote modular construction announced policies related to using modular construction, and the policies contributed toward increasing the use of the method. The construction industry has been considered conservative in adopting new technologies, and technologies have been used only when the effectiveness was validated. Considering this conservativeness, it is expected that the market share of modular construction can be rapidly increased with the quantitative demand announced by the government because economies of scale can be achieved and a plan for return on initial investment can be developed. Therefore, the framework of this research can be a starting point to develop promotion policies. This framework has an advantage over the work done in other studies in that the quantitative results include the entire Seoul area.
Through the estimated number of potential sites for SSPM, a roughly 8-year small-scale housing supply plan can be developed. Developing such a long-term plan allows for a chance to deliver returns on the higher initial investment cost. However, the estimated number is not enough for realizing the widespread use of modular construction methods instead of conventional construction methods. To increase the market share of modular construction, the business model of the government must be diversified. The Seoul government, in addition to using government-owned sites, is planning to acquire suitable sites for SSPM by purchasing land from the private sector. Moreover, the government can announce the preferred purchase of SSPM, and the development can be carried out by the private sector. Diversifying the business model of the government can reduce project costs and thereby increase the demand for modular construction. This explains how some pioneering countries have achieved success with modular construction. The research framework suggested in this study can be used for realizing diversification by transforming the business model or by estimating the number of sites for the transformed model.
5.3. Combination of OSC Methods for Public Housing Supply Strategy
In this study, the modular construction method was adopted to supply SSPM. Even with this method, conventional construction methods inevitably need to be used sometimes for building the foundation or a staircase. To improve the project efficiency, the complexation of various OSC methods in a project can be considered. For example, the foundation and the basement of a modular building can be constructed using the precast concrete (PC) method. Complexation could reduce the cost and duration while improving the quality of a project. As described in the case studies, Type 1 housing was not fully developed because of the regulations of the design guidelines. The use of the PC method, a panel-type OSC method, instead of the volumetric modular architecture could enable more floor area to be developed. Therefore, to improve the efficiency of modular construction projects, complexation with other OSC methods must be considered during the planning phase.
6. Conclusions
The modular construction method affords benefits such as reduced civil complaints, reduced disruption of public facilities, high productivity, and shorter construction duration by conducting a significant proportion of construction work in an environment-controlled factory. This method has been considered an effective approach to meet the housing demand in urban areas. The PHSS is planning to adopt the modular construction method to supply SSPM to satisfy the housing demand in urban areas. However, a long-term plan from the PHSS is required for the Korean construction industry to overcome the negative perceptions of modular construction and actively participate in SSPM development projects. To develop such a long-term plan, the number of sites suitable for SSPM in the urban area of Seoul should be estimated.
The research framework suggested in this study can be used to estimate the number of sites suitable for SSPM and the feasibility of these sites. The estimation results showed that SSPM can be supplied for 8 years, and the cases selected for feasibility analysis based on the architectural planning for SSPM were profitable. Therefore, SSPM is justified for supplying housing in urban areas, and modular construction can be promoted by diversifying the land acquisition method for different business models. The project efficiency of SSPMs can be improved by integrating and simultaneously conducting SSPMs.
This study differs from previous ones in that the feasibility of modular construction was evaluated from an urban perspective, and the suggested framework can be used to develop a long-term plan for the PHSS. This means that the policy for small-scale housing supply can be developed based on the quantitative analysis, and the positive estimation results can be related to improved housing welfare policies. Moreover, the feasibility estimation results and public housing supply of modular construction can be a basis to overcome the negative perception related to high project cost and initial investment. One limitation of this study is that although SSPM can be constructed at various sites in Seoul, the research scope was limited to government-owned sites. The other limitation is that a detailed long-term plan for the PHSS was not developed. However, the suggested research framework can be used to enable local governments to estimate the number of suitable sites for different business models and to enable the central government to use these data to develop a detailed long-term plan.