As Korea's senior population surpasses 10 million and the shift into a super-aged society accelerates, the senior residence market is drawing attention as a future growth business. In line with market changes, a claim has emerged that the previously abolished for-sale senior welfare dwellings should be reintroduced, along with measures to minimize side effects.
Yu Sun-jong, a professor in the Department of Real Estate at Konkuk University, said at the "Korea Property Index Summit 2025" hosted by GenstarMate on the morning of the 19th on the first floor of the Yeongbingwan at the Shilla Hotel Seoul, "We need to once again expand the supply of for-sale senior welfare dwellings, which were abolished due to poor services by operators, false advertising, and intentional fraudulent sales."
Professor Yu, who delivered a presentation on "Trends and outlook for the senior market," explained that the importance of the senior residence market is growing as Korea enters a super-aged society.
Professor Yu said, "As traditional family structures change, the number of single-person elderly households is rising rapidly," adding, "Housing types are also shifting from large, extended-family-centered dwellings to small, personalized dwellings."
Senior welfare facilities are divided into senior welfare dwellings and elderly welfare dwellings. Elderly welfare dwellings refer to rental dwellings under the jurisdiction of the Ministry of Land, Infrastructure and Transport for low-income households. Senior welfare dwellings are welfare facilities under the jurisdiction of the Ministry of Health and Welfare, not dwellings.
Senior welfare dwellings, which draw demand from the middle class and above, currently number about 10,000 households nationwide. For rental-type senior welfare dwellings, more than 20,000 households are scheduled to be supplied in the greater Seoul area alone by 2030.
In particular, cases are increasing in which private consortia supply senior welfare dwellings through mixed-use development based on public housing sites. Large-scale supply of mainly 500 households or more is underway at sites such as the Cheongna District medical complex town in Incheon, Magok VL Le West in Seoul, The Signum House in Jagok-dong, Seoul and Cheongna, Incheon, Osiria in Busan, Baegun Lake Prugio Forest Morning in Uiwang, Pyeongchang County, and Wirye Symphonia.
Yu said there is a need to reintroduce the for-sale senior welfare dwellings system, which was abolished in the past, focusing on regions facing population extinction.
Yu said, "Senior welfare dwellings could be sold in the past, but the for-sale system was abolished due to poor operator services and evasion of responsibility, intentional fraudulent sales by businesses, and false advertising by developers," adding, "As we enter a super-aged society, expansion of senior welfare dwellings is necessary, and to activate private-sector participation, we should reintroduce the for-sale system by preparing management measures that can prevent past problems."
Korea's senior residence market is smaller than those of advanced overseas countries, suggesting strong growth potential ahead. Senior residences account for 0.12% of the housing market in Korea. Compared with Japan (2%) and the United States (4.8%), Yu said the Korean market has significant growth potential.
Yu said, "Senior residence supply is expected to expand in both the public and private sectors going forward," adding, "The government is promoting improvements to related systems and plans to supply senior welfare dwellings in various forms."
Corporations in various industries, including domestic builders, insurers, and asset managers, are also stepping into the senior residence market.
In the construction industry, efforts are focused on building smart residential environments that apply cutting-edge Internet of Things (IoT) technologies and universal design. The insurance industry is also providing long-term residency guarantees and developing products linked to medical expenses to offer financial stability to residents. It also supports total care solutions, including health management services. The asset management industry is implementing long-term asset management strategies that enhance asset value by building stable rental income models.
Professor Yu emphasized, "The senior residence market is a future growth sector that combines demographic shifts, policy support, and private investment," adding, "It is being viewed as one of the most noteworthy investment markets over the next 10 years."
However, in Korea, there was criticism that diversity among business participants is lacking compared with Japan's senior residence market.
Yu said, "Participants in Japan's senior housing business are diverse, including construction companies, real estate developers, railway companies, steelmakers, food ingredient companies, staffing firms, distributors, energy companies, mail-order companies, and learning material companies," adding, "In particular, companies whose core businesses are related to the senior market—such as health care, finance, dining, distribution, and security—mainly participate through subsidiaries."
Yu predicted, "The senior residence market is not just real estate but essential infrastructure needed for future society," adding, "It is a stable investment destination capable of steady growth alongside demographic changes and an innovative business model that turns the tide of an aging society into an opportunity."
At the event, GenstarMate unveiled the "Korea Annual Property Index," developed together with the global index provider MSCI (Morgan Stanley Capital International).
Kim Gyu-jin, head of the GenstarMate Research Center, gave a presentation on the theme of "The present and future of Korea's commercial real estate market." Then Pankaj Soni, a director at MSCI Singapore, introduced the "index analysis methodology." Lee Kyung-ja, a research fellow at Samsung Securities, delivered a presentation on "the correlation between REITs and real estate."