Rising Interest Rates Drive Attention to 'MinGwan Imdae Jutaek'... 'Uiwang Station Lucenheim' to Launch in April

- Increased Interest Burden Due to Rate Hikes... Growing Interest in Private Rental Housing with Affordable Rent and Sale Conversion Options
- Cooperative-Type Private Rental Housing 'Uiwang Station Lucenheim' to Open PR Center in April

Amid rising interest rates increasing borrowers' loan interest burdens, 'private rental housing' is emerging as a new housing alternative. The relatively affordable rent compared to surrounding market prices, the possibility of stable long-term residence, and the option to convert to ownership after 10 years have captured the attention of demanders.

The Bank of Korea has raised the base interest rate 10 times by 3.0% since August 2021, increasing from 0.5% in July 2021 to the current 3.5%. Additionally, on the 22nd, the U.S. Federal Reserve (Fed) announced further rate hikes, and with the expectation of maintaining a high-interest-rate stance for the time being, interest burdens are continuing to grow.

As a result, there is a surge in demand for private rental housing, which can reduce housing cost burdens and allows for conversion to ownership. It offers long-term residence for up to 10 years, is not counted as part of the number of owned houses, so there are no taxes related to home ownership such as acquisition tax or property tax, and since it is guaranteed by the public corporation Housing & Urban Guarantee Corporation (HUG), it also has the advantage of eliminating concerns about recent widespread issues like "empty deposit" leases and rental fraud.

In fact, according to the Korea Real Estate Board's subscription website, 'Hillstate Gwanak New Foret,' launched in July last year in the Gwanak-gu area of Seoul, attracted 10,536 applicants for 111 private rental units, recording an average competition rate of 94.9 to 1. In November last year, the private rental apartment 'Hillstate DMC Station' supplied in the Eunpyeong-gu area of Seoul recorded an average subscription competition rate of 17.7 to 1, proving the high popularity of private rental housing.

Meanwhile, the cooperative-type private rental housing 'Uiwang Station Lucenheim' is drawing attention by opening a promotional center and recruiting founding members.

The complex is planned to be built in the Samdong area of Uiwang City, consisting of 200 units of a single exclusive area size of 84㎡, ranging from 7 basement floors to 25 above-ground floors. Hyundai Asan has submitted a letter of intent to participate in construction, and Mugunghwa Trust Co., Ltd. is in charge of the trust.

Uiwang Station Lucenheim is a 'cooperative-type private rental housing project' combining the 'Framework Act on Cooperatives' and the 'Special Act on Private Rental Housing,' characterized by the ability to purchase a home at a fixed sale price after 10 years of rental residence.

In particular, Uiwang Station Lucenheim is rapidly emerging as a new investment destination because, unlike general apartment sale rights, it grants cooperative member status, allowing free sublease and sale of lease rights. First, it is not counted as part of the number of houses, so there are no tax burdens such as acquisition registration tax, property tax, or capital gains tax. There are no restrictions on resale or residency obligations, and lease rights can be transferred, attracting interest from both those seeking a home and investors.

Uiwang Station Lucenheim boasts a convenient transportation environment. It is located about a 3-minute walk from Uiwang Station on Line 1, providing excellent access to the station. Additionally, it benefits from convenient metropolitan transportation networks such as Yeongdong Expressway, Pyeongtaek-Paju Expressway, Gwacheon-Bongdam Urban Expressway, and expected transportation improvements like GTX-C, which will significantly enhance transportation convenience in the future.

Abundant living infrastructure and school zones also stand out. Right next to the complex are various commercial facilities such as Hanaro Mart and Dokkaebi Market, as well as convenient access to community centers, hospitals, and banks. Especially, within about a 3-minute walk is Bugok Elementary School and several nearby academies, providing excellent educational conditions for children.

The pleasant natural environment is another advantage. Within a 1km radius are Wangsong Lake, Snowflake Children's Park, and Bugok Sports Park, where residents can enjoy relaxing rest and leisure activities.

This content was produced with the assistance of AI translation services.