Should We Aim for ‘Cheongnyeon Jutaek’ That Secures Both Price Competitiveness and Housing Stability?

As housing prices continue to rise and the shortage of jeonse (long-term lease) listings persists, 'publicly supported private rental housing' is gaining attention as a residential alternative. With a balance of price competitiveness and housing stability, it is especially popular among newlywed couples and young adults in their 20s and 30s. Since the special supply for these groups is limited in quantity, it is necessary to secure a spot early.

Introduced in 2018, publicly supported private rental housing refers to rental housing supplied by private construction companies with land owned by the public sector or public financial support. Tenants can lease for up to 8 years through contract renewals every 2 years, and rent increases are capped at 5% per year. The special supply, which accounts for about 20-30% of the total units, is priced at 85% or less of the surrounding market rent, making it more affordable than the general supply rate of 95%.

An industry insider explained, "According to the Korea Real Estate Board, last year nationwide housing prices and jeonse prices surged at the largest rate in 9 and 5 years respectively, increasing market instability. For young non-homeowners who lack lump sums for deposits or home purchase funds, publicly supported private rental housing is like a much-needed relief. Especially, the special supply for newlyweds and youth attracts high interest as a competitively priced and stable living space."

In fact, recently supplied publicly supported private rental housing has recorded high subscription competition rates in the special supply category. For example, according to Korea Real Estate Board’s subscription home data, the publicly supported private rental housing 'Seoul Sinnae Station City Pradium' supplied in Jungnang-gu, Seoul, closed its special supply subscription last January with a high competition rate of 10.20 to 1 for newlywed couples and 16.53 to 1 for youth.

Meanwhile, publicly supported private rental housing targeting newlyweds and youth is also attracting attention in Ulsan City. Shinsegae Construction is launching 'Villiv Ulsan' in Jung-gu, Ulsan. The complex consists of 5 buildings ranging from 5 basement floors to a maximum of 29 floors above ground, with a total of 567 units including 405 apartments with exclusive areas of 51-84㎡ and 162 officetel units with exclusive areas of 53-64㎡.

This supply includes a total of 162 units of apartments and officetels with exclusive areas of 51-55㎡ offered as special supply for youth, newlywed couples, and two-person share houses. As a publicly supported private rental housing complex, tenants can live by paying rent with an annual increase capped at 5% during the mandatory lease period of up to 8 years. Anyone who meets the eligibility criteria can apply for subscription regardless of whether they have a subscription savings account.

Eligibility for move-in requires that, as of the initial tenant recruitment announcement date, newlywed couples must be non-homeowners married within 7 years, and youth must be unmarried non-homeowners aged 19 to 39. Income criteria are limited to 120% or less of the previous year’s average monthly income of urban workers’ households, and for youth without separate income, parental income is combined for calculation.

Living infrastructure is also established around Villiv Ulsan. Located in downtown Ulsan, it offers easy access via road networks such as Beonyeong-ro and Bukbu Sunhwan-ro, and is close to convenience facilities like Homeplus (Ulsan branch) and NewCore Outlet (Ulsan Seongnam branch). Within a 1 km radius are Hamwol Elementary, Okseong Elementary, Ulsan Middle and High Schools, as well as Hakseong Park and Taehwa River, securing a good residential environment.

Community facilities include a fitness center, business center, and residents’ caf?. Convenience services such as cleaning, car-sharing, and unmanned parcel lockers are provided, along with exclusive Shinsegae Group benefits like Shinsegae online shopping mall perks, Chosun Hotel room promotions, Youngrangho Resort room promotions, and discounts on ancillary facilities.

Additionally, an avenue-type commercial facility is being developed within the complex, enabling a one-stop lifestyle combining residence and shopping. Negotiations are currently underway for the entry of Shinsegae affiliate retail content.

Meanwhile, the Villiv Ulsan promotional center is located in Jung-gu, Ulsan.