"I'll Spend My Inheritance Myself"... "Silver Town? I'd Rather Keep My Money and Live in a Zero-Deposit Hotel"[Real Estate AtoZ]

Major conglomerates rush into the senior residence market
"Quality of my life over inheritance"...seniors seeking urban living
Drawn to hotel-style senior residences

Exterior view of the Marriott Executive Apartments facing Saetgang Ecological Park in Yeouido, Seoul. Marriott Executive Apartments

The high-end senior residence market for the top 1% in South Korea is heating up. Major conglomerates such as Hotel Shilla, Lotte Hotels, and Hyundai Engineering & Construction have successively entered the business, and the government also announced its "Senior Residence Revitalization Plan" in 2024, moving to expand private-sector supply.

However, among wealthy individuals, the calculations around liquidity are complex. This is because, given the nature of silvertowns, they must tie up billions of won in cash as a deposit, incurring a significant opportunity cost. Against this backdrop, a hotel-style senior residence model that requires no deposit, has no age restrictions, and is contracted on a monthly basis is emerging as an alternative among high-net-worth individuals.

2 billion won deposit vs 0 won

According to the real estate industry on the 20th, the "Marriott Executive Apartments in Yeouido, Seoul" (hereinafter Yeouido Marriott) recently launched a long-stay product called the "Golden Senior Package," targeting active seniors aged 55 and older. This is a five-star residence hotel where every unit is separated into a living room, bedroom, and kitchen. Unlike regular hotels, the units are equipped with built-in ovens, dishwashers, large refrigerators, as well as washing machines and dryers. Residents can receive hotel services such as room service and housekeeping, while also being able to cook and do laundry themselves whenever they wish.

Moving into a high-end senior residence requires a deposit in the hundreds of millions of won, with living expenses charged separately. The Classic 500 in Gwangjin-gu, Seoul, often cited as the original high-end senior residence, requires a deposit of between 900 million and 1 billion won, and monthly living expenses of around 5 million won, yet demand is so strong that the waiting period stretches to several years. VL Le West in Gangseo-gu, Seoul, requires a deposit of 700 million to 2.2 billion won, with living expenses of about 2.15 million to 5 million won. The Signum House in Gangnam-gu requires a deposit in the range of 400 million to 900 million won, and about 2.5 million to 4 million won in monthly living costs.

According to the NH Investment & Securities 100-Year Life Research Institute, as of 2024 the threshold for the top 1% of households by net assets is 3.3 billion won, of which 81% is in real assets. In a situation where fixed income declines after retirement, tying up several billion won as a deposit for years is a considerable burden. The Golden Senior Package at Yeouido Marriott requires no deposit at all. Instead of placing a large lump sum at move-in, residents only pay a monthly accommodation fee and can enjoy the hotel infrastructure as if it were their own home. Legally, it is classified as a "lodging facility," not a "senior welfare housing," so there is no age restriction for residency.

'New seniors' emerge... "Quality of my life over inheritance"

Interior of a two-bedroom suite at the Marriott Executive Apartments in Yeouido, Seoul. Marriott Executive Apartments

According to a report published last year by Samil PwC Management Research Institute, the current concept of seniors is defined as "new seniors" or "active seniors," distinct from the traditional elderly. They do not perceive themselves as elderly. Rather than leaving their assets to their children, they tend to use them independently for their own later years. They prefer to maintain their existing lifestyle in city centers where department stores, hospitals, and cultural facilities are concentrated, instead of being isolated in suburban silvertowns.

Hotel-style senior residences are aimed at this type of demand. Yeouido Marriott is adjacent to Yeouido Park, Hangang Park, and Saetgang Ecological Park, and residents can walk to nearby shopping facilities such as The Hyundai Seoul and IFC Mall. It is located in a "quadruple station area," close to Yeouido Station on Subway Lines 5 and 9, Saetgang Station on the Sillim Line, and Daebang Station on Line 1. Yeouido St. Mary's Hospital is a five-minute drive away, and hospital reservations can be made through the hotel concierge.

The hotel operates a membership-based fitness and spa facility of about 6,600 square meters (2,000 pyeong), which includes an indoor swimming pool, GDR (Golfzon Driving Range), sauna, and screen golf range. Hotel guests using the Golden Senior Package can access the fitness facilities free of charge. There are a total of 94 rooms, and floors 4 through 14 are operated as hotel rooms.

A Yeouido Marriott representative said, "We are seeing a growing number of people choosing to live here to enjoy global hotel-level services without the burden of a large deposit," adding, "Once the Yeouido redevelopment gets fully underway, we also expect continued demand from older residents who want to spend the relocation period without leaving their familiar neighborhood."