CR REITs Emerge as a Solution for Regional Unsold Apartments: Jeonse Supply at 'Sincheon Maegok Ubora'

“CR REIT” Sparks Tent Line-Ups as Demand Surges
Attention Drawn to Reasonable Jeonse Prices Compared to Local Market Rates


Safe Jeonse Offering Approved by Ministry of Land
149 Units of 84 sq.m and 117 sq.m Available
First-Come, First-Served Pre-Contract at 10 AM, October 24 (Saturday)

A surge of demand is emerging among prospective tenants seeking to sign jeonse (security deposit rental) contracts for newly built apartments in regional areas that have remained unsold for an extended period. In an unusual scene, these individuals are pitching tents and camping overnight even before the official application opens in order to secure their preferred units.

This shift has been driven by the supply of jeonse apartments through Corporate Restructuring REITs (CR REITs). CR REITs are real estate investment trusts established for corporate restructuring purposes, which generate profits by acquiring unsold homes or real estate assets and then operating them as rentals. The process is considered trustworthy, as CR REITs are established and operated with the approval of the Ministry of Land, Infrastructure and Transport. Many examples feature jeonse prices offered at rates more reasonable than surrounding market prices, drawing high interest from tenants looking to reduce their housing costs.

'Sangin Prugio Center Park' in Dalseo-gu, Daegu, provides a representative example of this trend. Even after its completion in 2024, this complex had remaining unsold units, but the introduction of jeonse supply via CR REITs has shifted the response among prospective tenants.

According to the sales industry, during the second round of first-come, first-served applications for jeonse units held in September, aspiring tenants began gathering as early as two days in advance. Camping chairs and parasols appeared around the sales office, as did tents for overnight stays. On the day of the application, more than 200 people waited in a long queue, demonstrating keen interest. It was also reported that all units in the first round of jeonse supply were quickly contracted.

The ability to enjoy a modern apartment with excellent infrastructure and no initial capital burden is expected to help position CR REIT-linked jeonse offerings as a rational housing alternative in regional property markets going forward.

- Ulsan’s First CR REIT: 'Sincheon Maegok Ubora'... Reasonable Jeonse Prices with HUG Deposit Guarantee

Meanwhile, a newly built apartment complex in Ulsan has garnered attention as the first in the city to introduce a CR REIT model. 'Sincheon Maegok Ubora', located at Chansaem 1-gil in Buk-gu, Ulsan Metropolitan City, is scheduled to begin first-come, first-served pre-contracts at 10 a.m. on Saturday, October 24. The apartment complex consists of five buildings ranging from two basement levels to 24 floors above ground, with a total of 352 units in exclusive sizes of 64, 84, and 117 square meters. Through the current CR REIT supply, 149 jeonse rental units will be made available: 45 units measuring 84 square meters and 104 units measuring 117 square meters.

At 'Sincheon Maegok Ubora', jeonse deposits for tenants utilizing jeonse loans from designated financial institutions are covered by deposit insurance from the Korea Housing & Urban Guarantee Corporation (HUG). With a strong emphasis on deposit protection for tenants, residents can be assured of stable tenancies for up to four years without concerns about deposit non-return.

The comparatively low jeonse rates set for this complex are also noteworthy. The expected jeonse for 84-square-meter units to be supplied via CR REIT is in the 200 million won range, while the larger 117-square-meter units are expected to be priced in the 300 million won range. Since these are more reasonable than surrounding market rates, the offering is being recognized as a practical solution for prospective home seekers.

The complex stands out for its excellent residential features. Selected units feature a four-bay layout, and ample storage areas such as walk-in closets, pantries, and entryway storage are available. Community amenities for residents include a fitness center, indoor golf practice room, kids station, children’s playground, and daycare center. The parking facilities are 100% underground, and the majority of the buildings are oriented facing south to maximize residential comfort. With approximately 1.62 parking spaces per unit, residents can also expect a stress-free parking experience.

The surrounding infrastructure is also impressive. Various amenities such as a CGV cinema and medical clinics are nearby. Residents have easy access to Maegokcheon and Dongcheongang Riverside Parks, Ulsan Forest, and the Buk-gu National Sports Center. Educational facilities include Sincheon Elementary School, as well as Maegok Middle and High Schools—all within walking distance. There is also a well-established nearby area for private academies.

The location offers excellent transportation and commute options. Main thoroughfares such as Sandan-ro, Autovalley-ro, National Route 7, and Nam-gu Okgok South Ring Road provide easy access by car. Additional improvements to transportation are expected with ongoing projects like the Nongsou–Oedong National Route, Buk-Ulsan Station on the Donghae Line, and the Ulsan Outer Ring Road. Several industrial complexes—including Maegok Industrial Complex, Maegok 2nd and 3rd Industrial Complexes, and Jungsan, Ihwa, Munsan, and Modular General Industrial Complexes—are all within about a 20-minute drive.

Meanwhile, the leasing promotion center for 'Sincheon Maegok Ubora' is open in Sincheon-dong, Buk-gu, Ulsan, with an on-site sample house in operation.

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