Strengthened Business Stability with Private Rental Housing Act Amendment... Paju "Heyri Oberone" Draws Attention

Government Steps Up Regulation, Screening for Quality in Private Rental Housing Market
Military Consultation, Traffic Impact Assessment, and Integrated Architectural Review Completed
"Heyri Oberone" Secures Project Stability

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The government has recently included the "indirect recruitment" of prospective tenants—using titles such as members or investors for recruitment purposes—within the scope of regulated practices in the private rental housing market. As a result, procedural verification within the market aimed at protecting future tenants and ensuring business stability is expected to be significantly strengthened.

On August 20, the National Assembly passed the original draft of the "Partial Amendment to the Special Act on Private Rental Housing" at its plenary session. The amendment prohibits the recruitment of tenants, or those intending to become tenants, in private rental housing as members, investors, or promoters without following the legally prescribed procedures.

With this amendment, the importance of verifying the qualifications of the project entity and recruitment procedures in the private rental housing recruitment process has increased.

Previously, there was debate on whether regulations should apply depending on the type of contract or recruitment title. However, this amendment provides grounds for regulating any act that essentially recruits future tenants, regardless of the title used. This is a system improvement prompted by repeated disputes over project delays or deposit refunds after recruiting subscribers ahead of the start of private rental housing businesses.

Accordingly, it is now important for potential tenants to verify not only the recruitment or sale-to-ownership conversion terms, but also the actual progress of the project. This means comprehensively checking whether the project has been reported to the local government, whether land usage rights have been secured, the status of architectural reviews, and how funds are being managed.

Amid these changes, "Heyri Oberone," currently offered in Tanhyeon-myeon, Paju-si, Gyeonggi Province, is attracting attention. In accordance with the Special Act on Private Rental Housing, it has become the first project in Paju-si to follow a legitimate process and has completed the integrated architectural review. Currently, applications are being accepted on a first-come, first-served basis with rental deposits starting from the 200 million won range.

Heyri Oberone consists of 12 buildings with four basement floors and 29 floors above ground, offering a total of 1,122 units sized at 59 or 74 square meters of exclusive area. As a long-term general private rental housing project, anyone aged 19 or older may apply—regardless of home ownership or income criteria—without the need for a subscription savings account. The number of homes held under this program does not count toward property ownership during the rental period, and rent increases are limited to within 5% annually under the Special Act on Private Rental Housing.

The confirmed sale price will be set when the housing construction business plan is approved in 2027, and after 10 years of residence, tenants can convert to ownership at this predetermined price, irrespective of surrounding market prices. Rights and obligations, including preemptive purchase rights and tenancy, can be succeeded.

■ Over 80% of Land Usage Rights Secured... Financial Safeguards via Trust Company and HUG

Above all, the stable progress of the project through proper legal procedures stands out. Due to its proximity to the border area, military consultation is a critical step in the process; this has been completed, as has the traffic impact assessment review. The integrated architectural review—a major milestone before project plan approval—has also been completed. This procedure involves comprehensive evaluation across areas such as architecture, landscape, traffic, and structure. All major preliminary reviews are finished, and subsequent steps toward final project plan approval are underway.

The project sponsors have also laid a solid foundation for business advancement. Heyri Oberone has completed verification of its designation as a developable area, established a cooperative association, distributed certificates verifying member recruitment, and is proceeding with member recruitment after securing over 80% of the required land usage rights.

Funding stability is ensured as well. All funds paid by members are managed by a trust company, and for rental deposits, guarantees are provided by the Korea Housing and Urban Guarantee Corporation (HUG) at the final payment stage after completion. As the main project steps proceed, the contractor selection process is accelerating, with Cheil Construction having already submitted a letter of intent to participate as the contractor.

The project's offerings and location conditions are also excellent. Inside each unit, a smart home system with a 10.1-inch integrated wall pad is installed, and parking is provided at a ratio of 1.41 spaces per household. Within the complex, a variety of community facilities are planned, including a sauna, Chinese meal services, screen tennis, a fitness center, a golf practice room, a small library, a cafeteria, and a playground for pets. Additionally, there are plans for a shuttle bus for residents and a healthcare lounge in response to an aging population.

Directly adjacent to the complex is Tanhyeon Elementary School, while a kindergarten and Tanhyeon Middle School are also nearby, providing an educational environment where children can walk to school. The surrounding area contains an urban natural park, and facilities such as Heyri Art Village, Provence, and the Shinsegae Premium Outlet offer rich cultural and shopping amenities. Access to the GTX-A Unjeong Jungang station is possible in about 10 minutes by car, making use of the regional transportation network convenient as well.

A representative for the project stated, "Heyri Oberone is the first long-term general private rental housing project in Paju-si and has proceeded in strict compliance with relevant laws and procedures, successfully navigating all the major permit processes. Now that military consultation, traffic assessments, and the integrated architectural review have been completed, we will ensure that the remaining project plan approvals proceed smoothly in order to launch a stable residential offering."

The promotional center is located in the Dayul-dong area of Paju-si.

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