With consecutive interest rate hikes this year, more demanders are choosing rental housing over purchasing, leading to a rise in private rental housing.
Unlike public rental housing, private rental housing is built by private construction companies and features product qualities similar to general sale complexes. Additionally, anyone aged 19 or older can apply without a subscription savings account, and there are no tax burdens such as acquisition tax, property tax, or comprehensive real estate tax. Long-term residence is possible for up to 10 years, and rent increases are capped at 5% annually, enhancing housing stability. Most importantly, after winning the lottery and living in a new home, applicants can continue to accumulate subscription points, making it possible to purchase a home through general sales when the real estate market improves, which is another factor driving its popularity.
Especially in the current situation where the base interest rate continues to rise, raising funds for purchasing housing can be burdensome. On the 25th, the Bank of Korea's Monetary Policy Committee raised the base interest rate by 0.25 percentage points from 2.25% to 2.5%, considering soaring inflation and the won/dollar exchange rate. This additional hike follows increases of 0.25 percentage points each in April and May, and 0.5 percentage points in July, marking the first time in the Bank of Korea's history that the base interest rate has been raised four consecutive times in the same year.
Due to these base rate hikes, the loan burden on housing demanders has increased, drawing attention to private rental housing, which has relatively lower price burdens and offers stable residence. In fact, these homes have recorded high competition rates in the subscription market.
For example, the long-term general private rental housing "Haengjeong Town Doosan We’ve The Class" in Cheongdang-dong, Cheonan-si, Chungnam, which held its subscription in mid-month, recorded an average competition rate of 30.7 to 1. A week earlier, the public-supported private rental housing "Gyeryong Richville Dearban" supplied in Sejong City also recorded an average competition rate of 19.3 to 1. This is contrary to the current situation where a cold wind is blowing through the sales market and fears of unsold units are spreading.
An industry insider said, "With continuous interest rate hikes increasing the burden of loan interest and growing anxiety over housing price adjustments, more real demanders are choosing to live in private rental housing to save funds and observe the market. Compared to general sale complexes, private rental housing has less financial burden and, being built by private construction companies, offers excellent product quality, making it an optimal choice for those aiming to use it as a ladder to 'owning a home.'"
"Dongtan Station Plasse The Terrace," scheduled to be supplied in Dongtan 2 New Town, Hwaseong-si, Gyeonggi-do, is already attracting attention from demanders as public-supported private rental housing.
Dongtan Station Plasse The Terrace consists of 166 units ranging from 94 to 117㎡ in size, spanning from basement level 1 to ground level 4.
This complex has a low subscription threshold, allowing anyone aged 19 or older who is a household member without a home to apply regardless of subscription savings account, income level, or winning history. There is no restriction on re-winning, and conversion to sale is possible after the rental period ends.
In particular, Dongtan Station Plasse The Terrace is developed as a terrace house, offering differentiated product qualities. Every unit provides a terrace that can be customized according to lifestyle, such as gardening, home caf?, playroom, or home training space, and the top floor is designed as a duplex. Inside the units, highly usable extra spaces such as pantries and dressing rooms are designed to maximize space utilization. Various community facilities such as a golf practice range, moms’ lounge, kids’ zone, and women’s shared workspace are also advantages.
In terms of location, residents can enjoy the new town premium. Convenient access to Lotte Department Store, Lotte Premium Outlets, IKEA, and E-Mart Traders is available, and Dongtan Techno Valley is located to the north of the complex, enabling proximity to workplaces. The complex benefits from a forest environment with abundant green spaces such as Seonnap Forest Park and Binjang Mountain, and it also has a school zone with walking-distance educational facilities including Dawon Elementary, Dawon Middle, and Hanbaek High School, making it suitable for raising children.
Meanwhile, the model house for "Dongtan Station Plasse The Terrace" is currently open.
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