Hyundai Engineering & Construction will rent out new housing units in Bongdam in Hwaseong, Gyeonggi Province, starting in December.

Hyundai E&C said Sunday the company’s rental housing units, named Hillstate Bongdam, will be an alternative for those who are reluctant to purchase apartments in the overheated housing market in Seoul and nearby areas.

The Bongdam apartments are part of the government‘s rental housing policy devised to help people to lease apartment units on a long term basis -- more than 10 years -- at lower prices.

The average price for jeonse, one of the most common housing lease systems in Seoul, have steeply increased. In September, the average jeonse price for apartment units, in particular, shot up by 0.95 percent, from 0.81 percent in previous month.

According to data from KB Financial Group‘s real estate platform, the average jeonse price in Seoul reached 517 million won ($468,199) as of September.

“The company has received many inquiries from people in their 30s and 40s, as the new rental housing units are relatively free of lending restrictions,” the company’s official said.”

In Bongdam, Hyundai E&C will provide 1,004 branded apartments in the housing area that spans across 1.43 square kilometers. This housing area will later have a total of 11,400 housing units, becoming home to around 28,000 residents, according to the Ministry of Land, Infrastructure and Transport.

Residents of Hyundai E&C Hillstate Bongdam will be able to move in by June, the company said.

By Shim Woo-hyun (ws@heraldcorp.com)