Research Reports

News Stay and Public-supported private rental housing initiatives have laid the groundwork for corporate private rental housing supply. However, these programs faced significant challenges during implementation. Despite being long-term projects, they experienced frequent changes in policy models, funding structures, financing terms, and tax regulations. These rapid shifts increased market participation risks and eroded trust among stakeholders.Both programs set ambitious annual supply targets of over 30,000 units. However, actual performance fell short, with less than 10,000 units delivered per year. This failure to meet expectations hindered business activation.

 The government's new focus on long-term private rental housing (20+ years) should prioritize creating a successful model over meeting quantity targets. This shift requires developing and operating a viable business model. While public obligations and incentives vary, the 20-year model is consistently longer than previous programs.Investment fund liquidity is crucial. Recent policy changes allowing loan refinancing and relaxing standards for collateralized loans and REIT stock transfers are beneficial. Further exploration of conditions to enhance investment fund liquidity and reduce long-term investment burdens is necessary.Securing market trust through stable exits from initial News Stay projects is critical for promoting future private rental policies. However, proposed retroactive regulations on preferential sales and pre-sale conversion prices threaten profitability and violate principles against retroactive legislation.

 Such regulatory friction could undermine market trust and impede new ventures.Guaranteed exits based on initial agreements are essential for maintaining investor confidence. To balance investor rights and rental housing stock maintenance, alternative exit strategies like extended sale periods or conversion to listed REITs should be considered.The unfair allocation of National Housing and Urban Fund resources without corresponding profit responsibility should be addressed and removed from new public offering regulations. Additional support measures, including fee reductions, shorter business periods, and clarification of contract renewal rights upon liquidation, should be implemented.Redevelopment-linked business types should be selectively promoted, while expanding incentives for private sector proposals requiring private housing land acquisition. Multi-Property REITs encompassing diverse property types and locations should be encouraged to balance rental and capital gains.

 This necessitates an increase in small urban housing units generating monthly rental income.To stimulate business revitalization and improve profitability, acquisition taxes and comprehensive real estate taxes on rental housing should be normalized. Finally, the introduction of financing methods utilizing both REITs and Commercial Mortgage-Backed Securities is recommended.