As the housing market faces a downturn, publicly supported private rental housing is gaining praise as an alternative housing solution. Publicly supported private rental housing offers long-term residence for up to 10 years at reasonable prices compared to surrounding market rates, along with differentiated product features, making it a stable residential option.
Recently, the real estate market has seen increased financial burdens due to rising interest rates, along with higher sale prices and raw material costs, leading to reduced transactions and somewhat cautious behavior among buyers. Moreover, the increased interest rates have also raised the burden of jeonse (key money deposit) loans, resulting in a growing preference for monthly rent, which in turn heightens housing insecurity.
According to data from the Korea Real Estate Board, the nationwide apartment sales volume in July was 21,836 units, a decrease of about 63% compared to the same period last year (59,386 units). Additionally, a survey conducted last month by real estate information company Zigbang through its app found that the top reason for preferring monthly rent was "less lump-sum financial burden" (40.4%), and the third highest reason was "increased interest burden on jeonse loans" (13.5%), indicating that financial burdens are influencing housing purchases among consumers.
Accordingly, in the recent subscription market, publicly supported private rental housing, which offers relatively less financial burden but guarantees stability and product quality, is popular. According to the Korea Real Estate Board's subscription website, projects like ‘Hillstate Gwanak New Foret’ (average competition ratio 94.9:1) and ‘Sejong 4-1 Richville Dearban H1·H2’ (average 19.3:1) have proven their popularity with high competition rates.
In this context, Lotte Construction’s ‘Hadan Lotte Castle,’ which recently closed its subscription with favorable reviews, is attracting attention.
‘Hadan Lotte Castle’ is a publicly supported private rental housing project supplied in the Hadan-dong area of Saha-gu, Busan Metropolitan City, with official contracts scheduled for two days from the 16th (Friday) to the 17th (Saturday).
The complex consists of a total of 356 residential units (apartments) and 19 neighborhood commercial facilities, spanning from four basement floors to 20 above-ground floors. This supply phase will recruit 190 units and is designed to offer specialized housing services and layouts tailored for the main tenant groups of young adults in their 20s and 30s and newlyweds.
‘Hadan Lotte Castle’ boasts excellent location conditions. It is an ultra-station area just a one-minute walk from Dangni Station on Busan Subway Line 1, providing easy access to major downtown areas of Busan. Additionally, it offers convenient access to Nakdong-daero, Gangbyeon-daero, and Dadae-ro, allowing vehicle travel within 30 minutes to major industrial complexes in western Busan, such as Sasang Industrial Complex, Sinpyeong Jangnim General Industrial Complex, and Myeongji Noksan National Industrial Complex. Nearby are Saha-gu Office and the Hadan 5-day Market commercial district, as well as the largest commercial areas in Busan’s Saha-gu, Hadan Ogeori commercial district and Daehak-ro commercial district, enhancing daily convenience.
With Lotte Castle’s specialized design and residential services, the project combines practicality and price competitiveness. Of the total 356 units, the supply focuses on six small housing types: 90 units of 24㎡A, 18 units of 24㎡B, 32 units of 24㎡C, 108 units of 37㎡A, 54 units of 45㎡A, and 54 units of 45㎡B. The Lotte Castle specialized design and built-in systems for furniture and appliances are applied to the small units (24㎡), and 0.79 self-parking spaces per unit are provided to enhance tenant convenience.
Long-term residence is possible for up to 10 years, and the rental prices are competitive compared to surrounding market rates, easing financial burdens. Through Lotte Construction’s premium residential service ‘Ellis,’ rent increases are capped at 5% or less, and the Castle Link service allows movement within the publicly supported private rental housing complexes of Lotte Castle nationwide.
The community facilities within the complex are also notable. The rooftop garden and fitness center, book caf?, and childcare facilities on the top floor provide leisure options, while the on-site commercial area, public open spaces, and a customized community startup support center for those in their 20s and 30s offer a diverse daily life experience.
Furthermore, the project benefits from abundant demand. ‘Hadan Lotte Castle’ will include 19 neighborhood commercial facilities on the first floor, securing exclusive demand from the 356 households within the complex. Its ultra-station location near Dangni Station on Busan Subway Line 1 also facilitates securing a large flow of people, ensuring even richer demand.
The ‘Hadan Lotte Castle’ sales promotion center is currently operating, and move-in is scheduled for October 2022.
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