It has been identified that Sejong and Gimpo in Gyeonggi Province are being mentioned as candidates for the second phase of the 'Silver Stay' project, which will be announced in the second half of the year. The total volume of Silver Stay will be 1,500 households, more than doubling from last year.
According to the construction industry on the 20th, the Ministry of Land, Infrastructure and Transport is reportedly in discussions with the Korea Land & Housing Corporation (LH) regarding public land provision and potential locations for Silver Stay, including Sejong and Gimpo. Other areas in the metropolitan area are also mentioned as candidate sites. The government plans to announce a volume of 1,500 households, more than double the 700 households from last year. The Ministry of Land, Infrastructure and Transport will also promote a public proposal targeting private-owned land in addition to LH's owned sites.
Silver Stay is a long-term private rental housing project (20 years) designed for middle-class seniors aged 60 and over, offering services tailored to seniors such as housing, meals, and living support.
The Ministry of Land, Infrastructure and Transport selected the Guri Galmae district as the site for the first phase of Silver Stay last year. The priority negotiator for this project was selected as the UMI Construction consortium in April. The consortium consists of UMI Construction, Kyobo Life Insurance, Hanwha General Insurance, and Korea Land Trust. Currently, the first phase project is undergoing licensing stages, with construction expected to start by the end of next year. Of the 725 residential units, half, or 346 units, will be provided as Silver Stay. The expected occupancy date is in 2029.
Kim Gyeo-heung, head of the private rental housing policy division at the Ministry of Land, Infrastructure and Transport, noted, "The candidate sites have not yet been decided. We are currently in discussions and plan to disclose the candidate sites within this year and conduct a public proposal." The Ministry of Land, Infrastructure and Transport announced the introduction of the private rental housing 'Silver Stay' at the end of October last year and simultaneously conducted project site announcements and public proposals at the end of December.
The introduction of Silver Stay arises from the recognition that there is a shortage of affordable welfare housing for seniors as the current elderly population surpasses 10 million. Presently, welfare housing for seniors is divided into high-end private silver towns for the wealthy and welfare housing for low-income seniors. Silver Stay is characterized by being supplied at less than 95% of the market price of existing senior welfare housing and similar facilities, and rent increases are capped at 5% during contract renewals. Priority for residence is given to those without housing.
The 'Silver Stay' has drawn significant interest not only from construction companies but also from financial companies and developers that have entered the silver industry. Competing with the UMI Construction consortium for the first phase of Silver Stay was the Daewoo E&C consortium, which includes Daewoo E&C, Shinhan Investment Corp., and SK D&D. Businesses will receive tax benefits such as exemptions from acquisition tax, property tax, and exclusion from comprehensive real estate tax, along with financial support equivalent to public support for private rentals. However, some express concerns about the burden of operating for 20 years.
An operator of a private rental housing project said, "While Silver Stay targets the middle class, the actual rental prices may be significantly expensive. For operators who have to run the project for 20 years, the extent of government support will be crucial."