Input 2021.03.24 06:00
As an advantage of living accommodation facilities, the farming industry puts the point that it is relatively free from regulations such as taxes and loans rather than apartments. However, among industry experts, a warning sound has been issued that it is necessary to take a careful approach in consideration of risks, such as making it difficult to use it for residential use.
According to the real estate industry on the 24th, life-style accommodations are being supplied one after another this year. Consumers are also interested in hotter than in previous years. A large number of subscription applicants flocked to Lotte Castle Demer, a living accommodation facility that Lotte E&C recently supplied in the redevelopment project of the North Port of Busan Port in Choryang-dong, Dong-gu, Busan. On the 17th, the first day of subscription, a lot more people connected to the homepage at the same time than originally expected, causing an error in the subscription system. Lotte E&C has extended the subscription application time.
Daewoo E&C will sell’Busan Ocean City Prugio Residence’ to be built at 1180 Dongsam-dong, Yeongdo-gu, Busan from the 26th. The complex was constructed with a multi-purpose apartment consisting of 846 units of 3 stories below the ground and 49 stories above the ground (4 buildings), and a hotel and living accommodation facility consisting of 2 stories below the ground and 20 stories above the ground (1 building). The residential-commercial complex was sold in 2018, and this time it is supplying a living accommodation facility (160 rooms).
Life-style accommodation facilities are products that allow short-term rental and cooking. It can be said to be an intermediate form between hotel and officetel. You can participate in pre-sale even if you do not have a subscription passbook, and the LTV regulation is not applied. It is considered a niche product as it can avoid high-intensity housing regulations such as no resale restrictions and not included in housing. In some cases, various community facilities are created, and a separate operation specialist is in charge of operation to provide hotel-style services such as cleaning and laundry.
In the continuing supply of living accommodation facilities, unlike apartments that cannot be built in commercial areas, the fact that they can be built in semi-residential and commercial areas is working. In addition, as the inflow of demand for housing purposes and resale of pre-sale rights, which are reselling pre-sale right after the recent contract, increases, and the inflow of demand for housing purposes, it is judged that it is the right time for pre-sale.
An official from the pre-sale industry said, “Not only the investment demand, but also the end users who felt the burden of housing arrangements as apartment prices skyrocketed in the short term.” He added, “Compared to the sale price of apartments in the same location, the living-type accommodation is relatively inexpensive and the loan and tax regulations are less, so we approach the housing alternative.”
Some of the markets are also saying that living accommodation facilities in major tourist areas have investment value based on the fact that the decline in currency value, the rise in asset value, and tourism demand crushed by the corona crisis will explode in the future.
However, real estate experts emphasize that investment in living accommodation facilities should be approached carefully. Go Jun-seok, an adjunct professor at Dongguk University’s Graduate School of Law, said, “The housing price is so high that demand is flowing even as an alternative product, so you need to be alert.” “You have to invest in knowing that it’s not as big as you would expect.”
In particular, considering the fact that regulations will be strengthened so that living accommodation facilities cannot be used for residential purposes, the risk (risk) is high, experts view. The Ministry of Land, Infrastructure and Transport plans to impose a mandatory performance fee in accordance with the Building Act if living accommodation facilities are used for residential purposes from April.
The Seoul Metropolitan Government also said, “When reviewing sales reports related to living accommodation facilities, each autonomous district has requested to specify in the sales advertisements a promotional statement that guides them to confirm that they cannot be used for’housing’ purposes and that a business report for lodging business is possible.”
“The risk of investment in living accommodation facilities is not small,” said Yoon Ji-hae, senior researcher at Real Estate 114. “There is a possibility that the holder’s funds will be tied up due to the lack of currency exchange. It is easy to say that it is easy when entering, but difficult when it comes out.”
“Even if the law is not applied retrospectively, the next buyer may face this problem, making it difficult to dispose of, and when the real estate market slumps, the damage to niche-profitable real estate such as living accommodations may be greater.” did.
However, there is a controversy over whether to apply this law retrospectively to residents currently using it for residential purposes. Earlier, as residents who already used living accommodation facilities for residential use expressed a voice of opposition over the imposition of compulsory implementation fees, the Ministry of Land, Infrastructure and Transport is preparing a remedy to reduce damage to existing residents who have used living accommodation facilities for residential purposes.
Hyeon-taek Cho, a researcher at the Commercial Information Research Institute, added, “The yield of profitable real estate such as officetels and living accommodation facilities varies greatly depending on location and demand,” he added. “You have to make good judgments and invest.”