Premium Large-Area Residential Lodging Facilities Attract Attention as They Grow Larger

- Premiums Increase with Larger Living Accommodation Areas, Drawing Attention
- Chungbuk Cheongju and Seoul Magok District to Supply Medium to Large Living Accommodation Facilities in Prime Locations

As the popularity of residential lodging facilities with fewer regulations rises in the real estate market, mid-to-large and large-scale complexes with exclusive areas exceeding 102㎡ are gaining attention. Recently, due to COVID-19, demand for spacious areas has significantly increased, and the larger the area, the higher the premium tends to be.

For example, the ‘Ungcheon Xi The Suite’ residential lodging facility in Ungcheon-dong, Yeosu-si, Jeollanam-do, supplied in September 2018, shows premiums on resale rights of up to 220 million KRW (based on Naver Real Estate) for the mid-to-large exclusive area of 132㎡, and up to 370 million KRW for the large exclusive area of 166㎡.

In contrast, the ‘Ungcheon Trimage Belmare’ residential lodging facility, supplied right next door with the same location conditions but mainly composed of small-to-mid sizes ranging from 55 to 74.79㎡ exclusive area, has premiums on resale rights of only about 5 to 50 million KRW.

Similarly, the ‘Lotte Castle De Mer’ residential lodging facility, supplied in March in Choryang-dong, Dong-gu, Busan, showed significant premium differences depending on the area. The premium on resale rights for the 46㎡ exclusive area unit was up to 130 million KRW, while the 314㎡ exclusive area penthouse units had premiums reaching up to 320 million KRW.

An industry insider stated, "With the prolonged COVID-19 pandemic, the demand for spacious areas has increased not only in the housing market but also in income-generating markets such as residential lodging facilities and officetels, especially for complexes with mid-to-large or larger exclusive areas. In particular, high-priced large units are perceived as exclusive products that not everyone can access, attracting significant interest from many asset owners."

In fact, large-area units also showed strong performance in subscription applications. ‘Lotte Castle De Mer’ recorded a competition rate of up to 2,300 to 1 in the subscription held last March, which came from Group 4 consisting of penthouses with exclusive areas of 314㎡ and 335㎡.

In July and August this year, residential lodging facilities with mid-to-large and large exclusive areas are expected to be supplied in major regions, drawing high interest from asset owners.

Hyundai Engineering plans to supply the high-end residential lodging facility ‘Hillstate Cheongju Central’ in the Cheongju area of Chungcheongbuk-do in July. The complex will consist of 160 units ranging from 165 to 187㎡ exclusive area across 8 to 48 floors above ground. The interior will feature ceiling heights of 2.5 to 2.9 meters to maximize openness, and each unit will have an open balcony designed as a spacious area suitable for various activities such as barbecue parties. On the top floor, the 49th floor, community facilities including a sky lounge, party banquet room, outdoor spa & sauna, fitness center, and GX room will be established, offering wide-open views and leisure activities. Additionally, hotel-style concierge services such as breakfast delivery, room cleaning, laundry, on-site car wash, and party catering services will be provided.

Lotte Construction plans to supply the residential lodging facility ‘Lotte Castle Le West’ in the Magok Special Planning Zone, Gangseo-gu, Seoul, in August. The complex will consist of 876 units ranging from 49 to 111㎡ exclusive area across 5 buildings from 6 basement floors to 15 floors above ground. Various lifestyle convenience facilities such as lounges, fitness centers, indoor golf clubs, reading rooms, kids & mom cafes, movie theaters, and multi-purpose rooms will be established within the complex. Furthermore, diverse home care services including breakfast service, home laundry, housekeeping, as well as differentiated life services such as personal training, car sharing, and pet care will be offered.