Rising Demand for Medical Services Highlights 'ePyeonhansesang City Gosaek'

Recently, the value of real estate near large hospitals has surged significantly. In the era of aging populations, residential facilities near major hospitals are emerging as ‘medical-friendly complexes.’ The recent popularity of silver housing despite its high cost is also analyzed to be due to the ability to access high-quality medical services nearby.

According to the real estate industry, major silver towns in the Seoul metropolitan area, including Seoul and Yongin, take several months to years until move-in. The costs are also substantial, with deposits reaching up to 900 million KRW and monthly living expenses around 3 million KRW, yet the waiting demand remains strong. These complexes offer the advantage of residents enjoying high-quality medical services linked to major hospitals, 24-hour emergency room access, and health check-ups.

The silver housing sales market is also heating up recently. At ‘VL Le West’ in Magok, Seoul, about 10,000 people visited the model house within three days of its opening, and the subscription competition rate reached a high of 205 to 1, showing hot interest. Current contracts are also reported to be proceeding smoothly.

A sales representative for silver towns said, “There are more people wanting to move in than supply, so prices are high because the demand for a healthy life has increased,” adding, “The value of residential products near hospitals is also gaining attention accordingly.”

Living Near Large Hospitals Means Health... Leading Local Market Prices

Living near large hospitals actually helps maintain a healthy life. According to the 2018 report by the Korean Society for Health Equity on ‘Health Inequality Status by 17 Metropolitan Cities and Provinces and 252 Districts,’ Gangnam-gu in Seoul had the highest life expectancy at 84.8 years. This is partly attributed to the concentration of major hospitals in the Gangnam area. Furthermore, the recent issue of ‘emergency room roundabouts,’ where patients died after wandering between emergency rooms, has increased the value of residential facilities located near key hospitals.

Real estate near hospitals, where demand is concentrated, also leads local market prices. For example, the ‘Eunpyeong Skyview Xi’ with an exclusive area of 84㎡ right in front of Eunpyeong St. Mary’s Hospital in Eunpyeong-gu, which opened in 2019, recorded a highest transaction price of 1.293 billion KRW, leading the market prices in the Eunpyeong New Town area. In contrast, the ‘Gijachon 11 Complex,’ located a bit farther from the hospital, had a highest transaction price of 960 million KRW for the same area, showing a price gap of over 300 million KRW.

The area near Chung-Ang University Gwangmyeong Hospital (opened in 2022) shows a similar trend. The ‘Gwangmyeong Station U Planet Desiang’ with an exclusive area of 84㎡ recorded a highest price of 1.52 billion KRW. This is about twice as expensive as the highest price of 746 million KRW for Kolon Haneulchae in Seoksu-dong, which is farther from the hospital.

Research team leader Kwon Il from Real Estate Info said, “Several large hospitals are located in Gangnam-gu, Seoul, and major affluent areas such as Bundang-gu in Seongnam and Gwangmyeong station area invariably have large hospitals nearby,” adding, “The fierce competition among local governments to attract hospitals is because hospitals have a tremendous influence on local housing prices.”

Interest in Residential Facilities Near Hospitals Also Rising

Accordingly, residential facilities near hospitals are attracting attention. Among them, the residential officetel ‘e-Pyeonhansesang City Gosaek’ supplied by DL E&C in Gosaek-dong, Gwonsun-gu, stands out. It has a total of 430 units with an exclusive area of 84㎡.

Right next to the complex is Suwon Deoksan Hospital. It is a large hospital (total 706 beds) scheduled for its first phase opening in the second half of 2024 with 457 beds, located just across the street from e-Pyeonhansesang City Gosaek. Especially, residents can use medical vouchers worth about 3 million KRW, enabling convenient access to high-quality medical services such as 24-hour emergency room use, medical fees, and health check-ups.

The establishment of Suwon Deoksan Hospital is also expected to improve local infrastructure. A local real estate agent said, “When a large hospital is established in the area, the floating population of hospital visitors gathering to receive high-quality medical services greatly increases, which can also lead to the expansion of surrounding commercial facilities and living infrastructure.”

[e-Pyeonhansesang City Gosaek Bird's-eye View (Provided by DL E&C)]

원본보기 아이콘

Synergy with additional development benefits is also anticipated. The northern side of the complex, around 555 Tap-dong, Gwonsun-gu, has conditionally accepted the review results for the ‘Designation of District and Establishment of Development Plan for Tap-dong District Urban Development Project’ covering an area of 267,000㎡, which is expected to further increase the area's value. Detailed matters such as advanced facility sites and green space areas for the Tap-dong district will be revealed in the city planning approval. The project is being promoted with a goal to start construction in the second half of next year, and the city has announced an expected completion date in the first half of 2026.

The purchase burden has also been significantly reduced. A fixed contract deposit of 10 million KRW (first payment) and a 60% interest-free installment payment are offered. Various free benefits such as individual storage for each household, four system air conditioners per unit, built-in kimchi refrigerators, and engineered stone finishes in the kitchen also attract attention.

Additionally, the government has decided to change the calculation method for the total debt service ratio (DSR) of officetel mortgage loans, which are currently capped at an 8-year maturity, to the same method as general home mortgage loans (up to 30 years maturity). For example, a borrower with an annual income of 50 million KRW taking an officetel mortgage loan at 5% interest over 30 years would see their loan limit increase from 130 million KRW to 310 million KRW, an increase of about 180 million KRW.

A sales representative said, “People’s interest in residential products near hospitals is increasing, and with the recent improvement in the sales market atmosphere and the increase in loan limits, interest remains steady.”

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