Continuing the Success of Private Rental Apartments: 'Shin Asan Moa Elga Vista 2nd Phase' Heats Up

- New Housing Strategy Brought by the Three Lease Laws... To Own a Home, Choose 'Private Rental Apartments'
- Long-term Residence Possible for 8 Years, No Various Taxes on Home Ownership, and Future Sale Conversion Available

Due to the side effects of the government's stringent real estate regulations, including the Three Lease Laws, homebuyers' strategies for acquiring their own homes are changing. With sales and jeonse prices having already risen significantly and a shortage of jeonse properties compounding the issue, buyers are turning their attention to private rental apartments.

In the past, rental apartments were often overlooked by buyers. Both government and private sectors consistently offered rental apartments not only for low-income groups but also for the middle class through initiatives like New Stay. However, strong prejudice associating them with 'low-income groups' led to repeated sales failures except in locations with advantageous conditions. Recently, however, as housing strategies have shifted, these apartments have transformed from underdogs to swans, with every supply closing subscriptions and proceeding smoothly to contracts.

In December last year, ‘Gocheok I-Park,’ a publicly supported private rental apartment by HDC Hyundai Development Company, recorded an average competition rate of 5.22 to 1 with 11,510 applicants for 2,205 units. Additionally, a 10-year public rental apartment supplied by Company A in Hangnam-eup, Hwaseong, Gyeonggi Province, saw a remarkable scene where long queues of prospective tenants lined up at the sales promotion center due to the worsening jeonse shortage.

Looking closely, private rental apartments have many advantages. Regardless of income or home ownership status, anyone aged 19 or older can apply without a subscription savings account. They are supplied at reasonable prices, about 70-80% of the surrounding market price, reducing financial burdens. There are no concerns about taxes related to home ownership such as acquisition tax and property tax, and residents can live there for up to eight years.

Another advantage is that even if surrounding jeonse prices rise significantly, the jeonse deposit increase rate is capped at a maximum of 4% over two years, allowing for stable housing. After living there, when the time comes for conversion to sale, buyers have a wide range of options and are not subject to resale restrictions or other regulations.

An industry insider said, “The popularity of private rental apartments reflects a trend where many buyers prefer to rent and observe future market conditions rather than forcing themselves to buy homes at already high prices.”

Meanwhile, ‘Shin Asan Moa Elga Vista Phase 2,’ supplied by Moa Construction Industry Co., Ltd. and Hyerim Construction Co., Ltd. in Asan City, Chungcheongnam-do, recently attracted attention by recording an average competition rate of 186.73 to 1 with 186,358 applications for 998 units.

The housing exhibition hall, which opened on the 19th, operated only for prospective applicants who made prior reservations through the website due to the social distancing level 1.5 maintained in the Cheonan-Asan area amid the COVID-19 outbreak. However, it is said that there was a very large waiting demand from those wishing to visit. The first phase of this apartment was supplied in November last year and was highly popular, recording an average competition rate of 48.5 to 1.

‘Shin Asan Moa Elga Vista Phase 2’ is a private rental apartment allowing up to eight years of residence, consisting of 10 buildings from basement level 2 to 27 floors above ground, with a total of 998 units ranging from 59 to 84 square meters of exclusive area. It is supplied in small to medium-sized units preferred by buyers. Despite being a rental apartment, it offers product quality comparable to sale apartments. All units are primarily south-facing, and wide distances between buildings (up to 70 meters) secure views and sunlight, making living conditions comfortable. Community facilities at the highest level in Asan City, such as a children's water playground, golf club, fitness center, reading room, and guest house, are also planned.

The complex features primarily south-facing units and wide distances between buildings (up to 70 meters), ensuring good views and sunlight for a comfortable living environment. Inside the complex, community facilities such as a children's water playground, golf club, fitness center, reading room, and guest house will be introduced, representing the highest level in Asan City.

The landscaping facilities that enhance the complex's prestige are also excellent. The complex will be developed as a park-style community where residents can enjoy a leisurely daily life with community plazas, Play Ball Park, Marine Boy Park, themed parks, and walking trails throughout the site. Additionally, considering pedestrian safety and comfort, parking lots will be located underground, creating a safe complex free of cars on the surface.

High product quality and benefits are also noteworthy. Superior finishing materials not seen in existing rental apartments have been applied to enhance the completeness of the space. Furthermore, entrance doors are installed as standard, and system air conditioners are provided as free options (in one bedroom and the living room). Residents can also use U+ Smart Home services free of charge for three years.

Smart systems that improve quality of life are also applied. The underground parking emergency call system enables quick response in emergencies, and the unmanned security system blocks unauthorized entry, enhancing security. The introduction of standby power cut-off systems and eco-friendly solar power generation systems is expected to reduce management costs.

The living infrastructure is also excellent. Sinchang Station on Subway Line 1 is located just a 5-minute drive away, making travel to Seoul and the metropolitan area convenient. Access to Asan and nearby areas is also easy via Oncheon-daero and Onyang Circular Road.

Nearby are Sinjeongho National Tourist Site and Gokgyocheon, with Asan Environmental Science Park also close by. Convenience stores like Hanaro Mart and neighborhood living facilities within the large complex are easily accessible, and using a vehicle, access to the infrastructure of Asan's old downtown is also smooth. A daycare center is planned within the complex, and Namseong Elementary School and a school site are located within a 5-minute walk, making it a school district apartment. Nearby are also Soonchunhyang University and Polytechnic University.

As a residence close to workplaces, it has a large demand base. Large-scale industrial complexes such as Asan Sinchang General Industrial Complex and Inju General Industrial Complex are under development (scheduled for completion in 2024). The Asan Sinchang General Industrial Complex is being developed over 642,000 square meters in Omok-ri and Gung-hwa-ri, Sinchang-myeon, and the Inju High-Tech Valley (Section 3) is planned over 1,817,000 square meters in Geolmae-ri, Inju-myeon. The establishment of these industrial complexes is expected to strengthen industrial functions connecting to the metropolitan area. Additionally, in February, the Cheonan-Asan area’s industrial complexes were selected for the ‘Chungnam Display Materials and Components Specialized Complex,’ which is expected to foster companies and create new jobs.

‘Shin Asan Moa Elga Vista Phase 2’ offers a fixed initial payment of 5 million KRW for the first contract and interest-free benefits on intermediate payments, significantly reducing the initial financial burden. Also, loans covering up to 80% of the jeonse deposit are available through reputable financial institutions. The housing exhibition hall is located in Asan City.

Meanwhile, in April, ‘Pyeonghwa Square Moa Elga Vista’ with a total of 217 units (154 apartments and 63 officetel units) is set to open in Sang-dong, Mokpo City, expected to continue the success story of ‘Shin Asan Moa Elga Vista Phases 1 and 2.’