Preference for Pool Villa Pensions Soars, Drawing Increased Attention to Residential Lodging Facilities

With deposit interest rates in the 0% range and over 3,000 trillion won in liquid funds, money is flowing into stocks and real estate. This is because not only office workers but also university students are showing great interest in financial investment.

Of course, preferences vary, but among those who tend to prioritize safety, the real estate market is preferred. Traditionally strong apartment markets have recently shown signs of slowing due to the government's strong real estate regulations, making it difficult to purchase additional homes beyond primary residences.

The real estate market cycles according to real estate cycles and the beehive circulation model. Depending on the cycle, the real estate market repeats rises and falls, and real estate products also experience recurring trends according to the cycle.

Generally, during an upswing, apartment prices, which can form premiums, rise, and redevelopment and reconstruction projects, which are substitutes for apartments, also rise alongside. Conversely, during downturns, demand for commercial and office real estate increases, and prices also show an upward trend.

In this situation, attention is shifting away from the housing market, which is already heavily regulated by the government, toward lifestyle accommodation facilities, which are relatively less regulated. Since lifestyle accommodation facilities are lodging facilities rather than housing, they can avoid various heavy taxes (acquisition tax, comprehensive real estate tax, capital gains tax, etc.) and loan regulations imposed on multi-homeowners, and operation businesses are also possible.

Lifestyle accommodation facilities are operated in various ways: as residences located in urban areas, as hotels in tourist destinations, and as pension-style detached houses. Most lifestyle accommodation facilities are operated through consignment management by professional companies rather than direct individual operation.

Recently, Pastello Co., Ltd., a resort specialist company, announced plans to carry out a pool villa pension business in Yangpyeong, Sanjeong Lake, and Jeju, attracting attention.

Pastello’s first project, “Pastello Yangpyeong,” is scheduled to open soon. “Pastello Yangpyeong” plans to build 62 detached pool villa pension units on approximately 122,716㎡ of land.

With the prolonged social distancing, the popularity of pool villa pensions is soaring, and despite relatively high accommodation fees, nearby pool villa pensions are already fully booked months in advance, making reservations difficult.

“Pastello Yangpyeong” is a landowner joint project, so 100% of the land is secured, ensuring stability, and Pastello Co., Ltd. can operate it directly rather than through consignment, enabling a stable rental business. Additionally, owners can comfortably use the facilities for 30 nights annually at Pastello’s locations in Yangpyeong, Sanjeong Lake, and Jeju. The opening of the Songpa?Yangpyeong expressway in 2023 is also expected to help form a premium in the future.