Outstanding Residential Stability and Low Entry Barriers
Driving Continued Popularity
Recently, there has been growing interest in long-term general private rental housing in the real estate market. As sales prices continue to soar and instability persists due to issues such as jeonse fraud, these rental options are gaining popularity as alternative housing products focused on actual occupancy.
The long-term general private rental housing system was introduced by the government to promote long-term housing supply and stabilize housing prices. Its most notable feature is that tenants are guaranteed residency for up to 10 years. In addition, rent increases are limited to within 5% every two-year renewal, which helps reduce the burden of housing costs.
Another advantage is that there are no restrictions regarding home ownership or eligibility requirements for applicants. Anyone aged 19 or older can apply, and enrollment in the Housing and Urban Guarantee Corporation (HUG) jeonse guarantee is mandatory, effectively protecting tenants from risks such as jeonse fraud.
An industry insider stated, "Long-term general rental apartments are considered to have long-term investment value since lease rights can be transferred," adding, "Some units are even transferred at a premium, and the opportunity to secure a home at a price lower than the future market value is driving their popularity."
Meanwhile, in Daejeon, 'Gwanjeo Prugio Central Park' has announced the supply of long-term general private rental housing with a 10-year lease term, drawing significant attention from potential tenants.
Gwanjeo Prugio Central Park, as part of the Gaebaek District urban development project, will supply 20% (132 units) of its total 660 units as long-term general private rental housing. The remaining 528 units have already been sold through general sale, and move-in is scheduled for November 2026.
Additionally, the industry expects that the future value of the area will increase, as the new government has announced plans to focus on developing Daejeon into a global science hub, which is likely to accelerate the development of the adjacent national industrial complex near the project site.
An industry insider commented, "Furthermore, with the full implementation of the third phase of the stress DSR regulation starting this month, which will reduce borrowers' loan limits, there is growing interest in private rental products that can avoid such loan issues," adding, "As a result, attention toward the 10-year long-term general private rental units at Gwanjeo Prugio Central Park is expected to increase even further."
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