[Analysis] A Glimpse of Solutions for a Super-Aged Society in Apartments That Provide Meals

Popularity of Hotel-Style Meal Service Apartments
If Combined with Elderly Care Services

“Apartments that provide meals” are gaining popularity. These are apartments that have introduced hotel-style restaurants in their community facilities, which have been upgraded with amenities such as swimming pools and golf practice ranges. Some even offer three meals a day at affordable prices.

The hotel-style meal service within apartments was first introduced in Korea in May 2017, when residents began moving into “Trimage” in Seongsu-dong, Seoul. Since then, it has been adopted in major affluent neighborhoods in Seoul such as Gangnam and Yongsan. Recently, such premium services can also be found beyond Seoul’s borders, in areas like Incheon (Royal Park City near Wanggil Station).

It’s not just about providing meals. “Brighton Yeouido,” a luxury apartment in Yeouido, Seoul, which began occupancy last October, offers hotel-style breakfast services prepared directly by chefs. Additionally, “Raemian Onepentas,” a redevelopment project of Sinbanpo 15th complex in Banpo-dong, Seoul, plans to provide low-sodium specialized menus within its food and beverage community to accommodate residents seeking healthy and low-sodium diets. As meal services are introduced in each complex, service differentiation is also taking place. This indicates that competition in apartment meal services has begun and the related market is expanding.

Such meal services are unlikely to remain exclusive to some luxury apartments. They are highly likely to become essential services in newly built apartments. The super-aged society is expected to accelerate this trend. This forecast considers that 60% of new apartment supply in Seoul comes from redevelopment projects and that the original residents in these projects tend to be older. According to a recent government survey, 80.5% of elderly respondents said they would use paid meal services if they visited senior welfare facilities (2020 Ministry of Health and Welfare Elderly Survey).

This phenomenon is not simply because people “don’t want to cook.” It is a change that will take root as society ages and cooking becomes difficult. Moreover, if healthcare services such as 24-hour nursing or emergency care are added, these apartments could serve as quasi-senior welfare housing. If home care services like cleaning are also included, “one’s own home could become a senior welfare residence.” Considering that elderly people prefer to live in their own homes (79.8% according to the Elderly Survey) rather than nursing facilities, these services could be an appropriate housing solution for a super-aged society. In Japan, where the super-aged society arrived earlier, such home care services are already active. Sompo Holdings, Japan’s first insurance company, offers a “home nursing care” service that provides 24/7 support including visiting nursing, caregiving, household assistance, and emergency response.

As pointed out in Asia Economy’s major project “The Era of Senior Houses is Coming,” government support for “in-home care services” could be one solution to fill the gap in middle-class senior welfare housing. Since the market has already been created, responding to the super-aged society is possible simply by fostering and adding new service industries.

Recently, the government announced plans to allow the sale of senior welfare housing in depopulated areas, which raises concerns in this regard. It is questionable how many elderly people in need of medical and protective services would move to areas where local residents have already left. Retirees and elderly people as consumers should also be viewed separately. The industry is waving off such projects as unprofitable. Answers must be found in the market. At this point, there is concern that prioritizing policy goals alone might lead to the mass production of ghost silver towns, as in the past.