Due to the government's successive regulations, non-regulated products such as lifestyle accommodation facilities have recently attracted attention in the real estate market.
Unlike apartments, lifestyle accommodation facilities are subject to the Building Act, so there is no burden of acquisition tax surcharges or holding taxes, and resale is also possible. Although the internal structure and layout are almost similar to apartments, legally they are not classified as housing, so a subscription savings account is not required, and anyone over 19 years old can apply, making the entry barrier relatively low.
Despite the recent additional regulations imposed by the government on lifestyle accommodation facilities due to high interest, most lifestyle accommodation facilities located in tourist areas are used for their original lodging purposes and are therefore not subject to government regulations.
Lifestyle accommodation facilities are exempt from heavy taxation on multiple homeowners as well as strengthened housing regulations such as Loan-to-Value (LTV) ratio and Debt-to-Income (DTI) ratio. Additionally, for balance payment loans, only projects announced before January 2022 are exempt from the early implementation of the second phase of the individual Debt Service Ratio (DSR) regulation.
Industry experts unanimously agree that when considering investment in lifestyle accommodation facilities, it is necessary to carefully evaluate the location. Unlike officetels located in residential areas, lifestyle accommodation facilities must have characteristics of residential, commercial, and hotel locations to have high investment value. Since the main customers using lifestyle accommodation facilities are travelers, visiting buyers, and businesspeople, locations that can serve both as tourist and business areas are said to generate more stable profits.
An expert in the real estate industry stated, “As housing market regulations continue, lifestyle accommodation facilities, which are non-regulated products, are enjoying a ripple effect. Especially since a subscription savings account is not required and there are no restrictions on resale of pre-sale rights, investors nationwide are focusing their attention, and first-come, first-served contracts for the few remaining lifestyle accommodation facilities are actively taking place.”
Meanwhile, the lifestyle accommodation facility ‘Sokcho Howard Johnson’ is also receiving many inquiries from investors. Located in Joyang-dong, Sokcho-si, Gangwon-do, it is currently being sold. Kyobo Asset Trust is the developer, and Daewoo Shipbuilding & Marine Engineering Construction Co., Ltd. is responsible for construction.
Joyang-dong, Sokcho, where this facility is located, is considered the central area known as the Gangnam of Sokcho, with well-established basic living convenience infrastructure and tourist facilities. The area is convenient to use as it gathers major facilities such as Sokcho Beach, Cheongcho Lake, Sokcho Express Bus Terminal, and E-Mart. Sokcho’s tourism infrastructure, which attracts about 20 million visitors annually, is diverse. Tourist facilities such as Expo Tower, Sokcho Central Market, and Daepo Port are concentrated near the project site, and new tourist facilities such as a marine cable car, the giant Ferris wheel ‘Sokcho Eye,’ and a theme park are also planned.
The natural environment surrounding Cheongcho Lake, the East Sea, and Seoraksan Mountain is also notable. Sokcho Howard Johnson is located in a rare position where these natural views can be seen from the rooms. Some units offer permanent views of these sceneries, and there are also units with triple views, attracting investors’ attention.
In addition, in line with its prime location in the heart of Sokcho, it plans to have the best product quality in Sokcho. Sokcho Howard Johnson will be the only facility in Sokcho with a linen-dedicated elevator, and separate linen rooms on each floor and a luggage storage room on the first floor are also planned. The approximately 7-meter-high first-floor lobby features a sophisticated interior design that reinterprets the sparkling sea of Sokcho, adding a luxurious touch. On the second floor, a large multi-restaurant capable of accommodating group tourists, an outdoor bar with views of Sokcho, and a party room will be provided. Additionally, a rooftop garden expressing Sokcho’s sunrise and sunset will be created on the rooftop, offering a more relaxing time.
Furthermore, Sokcho Howard Johnson will be operated under the Howard Johnson brand of the global hotel group Wyndham. Wyndham Group, a global hotel brand, operates over 7,500 hotels with approximately 630,000 rooms in 66 countries worldwide, including Days Inn, Ramada, Wingate, and Wyndham Grand. Since they will be entrusted with operation, a more stable management system is expected.
Meanwhile, Sokcho Howard Johnson operates two showrooms in Seoul and Sokcho.
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