After the completion of the regions, the corporations restructuring real estate investment company (CR REITs) will purchase an additional 1,400 dwellings in Daegu, Yangsan, and Gyeongju. The total number of dwellings acquired by domestic CR REITs will increase to 2,000.
According to the Ministry of Land, Infrastructure and Transport on the 23rd, three CR REITs have applied for new business registrations by the end of last month. CR REITs gather funds from various investors to purchase unsold dwellings, operate them as rentals, and then sell them to generate revenue once the real estate market recovers.
These REITs are pushing for the acquisition of unsold apartments post-completion, with 163 dwellings in Gyeongju, 265 dwellings in Yangsan, and 990 dwellings in Daegu's Dalseo District.
In particular, the unsold apartments in Daegu have been vacant for a year since the entire complex (990 dwellings) was completed in April last year under a delayed sale scheme.
The first CR REIT has completed the acquisition of 288 dwellings at 'Suseong Lake Uibangsai' in Suseong District, Daegu, and has begun full-scale operations. The second CR REIT is expected to complete its registration procedures as early as this week after review by the Financial Services Commission and will start acquiring 275 dwellings in Gwangyang.
With the addition of these three REITs, a total of five CR REITs will acquire 1,981 unsold homes suffering from local market issues.