‘Jije Station Sambur Renaissance’ Anticipates Benefits as Registered Rental Business Operator System Revival Enters Final Countdown

The residential officetel market is stirring as the government hints at the revival of benefits for registered rental business operators.

[Sambootoken, 'Jije Station Samboo Renaissance' Rendering]

In July, the government announced at the 3rd Emergency Economic and Livelihood Meeting presided over by the President that it would present measures to normalize the registered rental business operator system within the year. Benefits such as exclusion from the comprehensive real estate tax aggregation and exemption from capital gains tax surcharges upon registering rental housing are expected to be reinstated.

This is interpreted as an intention to expand the scope of small housing eligible for tax benefits and reduce the property tax burden on multi-homeowners to increase private rental supply. However, the government stated that since tax benefits could induce overall real estate market instability, they will initially apply only to non-apartment properties.

Furthermore, the ‘2022 Tax Reform Plan’ includes measures to ease the tax burden on small housing rental business operators. If a registered rental business operator rents out small housing (exclusive area of 85㎡ or less, official price of 600 million KRW or less) and raises rent within 5% annually, the income tax reduction period on the rental income will be extended by three years from the end of this year to the end of 2025.

With the revival of the registered rental business system, officetels, which are non-residential properties, are expected to enjoy various benefits, prompting increased investor activity to secure quality residential officetels.

In this context, ‘Jije Station Sambur Renaissance,’ currently being sold in Pyeongtaek City, Gyeonggi Province, is attracting attention as a prime investment destination. The complex is located in Segyo-dong, Pyeongtaek City, Gyeonggi Province, and will be constructed with 180 units ranging from 47 to 59㎡ in exclusive area, spanning from three basement floors to ten above-ground floors.

Above all, it is expected to provide stable rental income due to abundant underlying demand. It is adjacent to the Pyeongtaek General Industrial Complex and can attract demand from workers in various industrial complexes such as Pyeongtaek Chilgoe General Industrial Complex and Pyeongtaek Songtan General Industrial Complex, as well as administrative personnel from institutions like the Suwon District Court Pyeongtaek Branch and the Suwon District Prosecutors’ Office Pyeongtaek Branch. Additionally, a shuttle service to the Samsung Semiconductor Pyeongtaek Campus operates nearby, allowing it to capture demand from employees there as well.

Significant developments that enhance future value are also underway. Numerous urban development projects such as Jije Segyo District, Yeongsin District, and Mosan Yeongsin District are progressing with active move-ins. Upon completion, the area is expected to emerge as a leading new residential area representing Pyeongtaek.

Moreover, the expansion of Samsung Electronics’ Pyeongtaek Campus, the world’s largest semiconductor factory, and the Pyeongtaek Brain City development project are expected to boost real estate value through regional development benefits.

The product quality is also excellent. Every unit is designed as a 2-room layout with a high-end duplex structure, aiming to provide residents with a sophisticated and luxurious living experience. The living room ceiling height is raised to approximately 4 meters to maximize the usability of the duplex and create an open, spacious feeling. Additionally, amenities such as a rooftop camping site and a central park will be established, providing spaces for relaxation and leisure with family and friends.

‘Jije Station Sambur Renaissance’ is relatively free from regulatory restrictions. Any demanders aged 19 or older can apply without using a subscription savings account regardless of home ownership or household head status. The winner selection method is 100% by lottery, allowing anyone a chance to win. Most importantly, officetel pre-sale rights are not counted as housing, so applicants can maintain non-homeowner status for future apartment subscriptions and are not subject to re-winning restrictions.

Meanwhile, the model house for ‘Jije Station Sambur Renaissance’ is currently open.