Starting at the end of this year, as the mandatory rental period ends and conversions to sale begin for New Stay (corporate-type rental housing), the government and project operators proposed extending the rental period by two years and granting existing tenants without homes priority purchase rights. They also decided to set the sale price, which operators had been able to decide, through appraisal.
According to the industry on the 11th, the New Stay operator of "e-Pyeonhansesang Terrace Wirye" in Wirye New Town, Seongnam, Gyeonggi, recently presented this plan to a delegation of tenants. The apartment's eight-year mandatory rental period ended on the 29th of last month. However, no agreement had been reached among the operators on how to convert to sale.
New Stay is a program introduced to supply rental housing to the middle class at the level of private-brand apartments. It allows residents to live for up to eight years at prices about 10% lower than surrounding market rates, and to encourage participation by corporations, it left the method of conversion to sale and the pricing to operator discretion.
However, as existing tenants demanded "priority purchase rights," a compromise was devised. Because the Ministry of Land, Infrastructure and Transport also agreed to this compromise, all operators of the 49 New Stay complexes (39,430 units) slated for conversion to sale by 2030 are expected to propose similar terms.
However, tenants may not accept this proposal. On the 9th, the "New Stay Federation," representing about 25,000 households across 20 New Stay complexes nationwide, including Wirye, was launched, and the group is demanding that homeowners also be given priority purchase rights.