The central government has implemented many housing measures for the amicable supply of rental housing and tried to supply the rentals based on the concrete quantitative analysis. The private sector also did similar things for that. However, the renta...
The central government has implemented many housing measures for the amicable supply of rental housing and tried to supply the rentals based on the concrete quantitative analysis. The private sector also did similar things for that. However, the rental housing market in korea has been in the premature level mainly dependent on the informal sector of the private while the advanced foreign countries run relatively large rental estates by the private. Because of the fact, it is broadly insisted that public and private rental housing should play a role of social safety net for the rental households. Currently the government made decision to supply 1.55 million units for 2013~2017 in addition to 1.85 million units by 2012.
This research attempts to find out what is the real demand for the private rental housing and how feasible it is for private developers to go for the provision. In order to accomplish the objectives, the research reviews the current legislation of rental housing policies including tax and financing systems and derives the demand for the long-term rental housing as well as the feasibility analysis. The result shows that the demand exists in the Capital region, but profitability of most rental housing units is much lower than 8.95% with the exception of the Capital region. It proves that provision of rental housing should take into account the concrete demand analysis and empirical feasibility studies as well as pretesting procedures of how much the rental households are willing to pay for rents and where they want to reside for their own preferences and tastes.