Over the past year, more than 50% of newly built apartments in Seoul reportedly included in-unit storage for residents. As 53% of all households in Korea live in apartments, many efforts are being made to increase value through communities designed for resident convenience.

In this article, we'd like to discuss how self-storage can be connected to apartment in-unit storage rooms, and what role it can play in the operating strategy of premium residential communities.

Competition in Apartment Community Services Driven by 'Operations'

Competition among premium apartment brands among major domestic construction companies is fiercer than ever. Since floor plans and locations are difficult to change, community facilities and services that shape residents' actual living experience are serving as core premium strategies.

Community facilities such as gyms, golf practice ranges, and study cafés have long become standard options, and apartments with pools, movie theaters, breakfast buffets, and even bowling alleys within the complex have emerged, continuing a kind of hardware competition.

However, the perception is spreading that it is difficult to differentiate with these facilities alone. Even with the same facility, residents' satisfaction can vary completely depending on how it is operated. Until now, it was enough for a gym to simply exist in the complex; from here on, we've entered a stage where resident-focused exercise programs are run by on-site personal trainers. We are now moving away from 'visible facilities' and into an era where 'working services' determine premium value.

The Need to Partner with Leading 3rd Party Services

<CGV Gold inside Seocho Grang Xi / Source: GS Construction>

Because apartment complexes select their management contractor through the residents' representative council, it is difficult for a construction company to manage operational quality even after move-in. Therefore, partnering from the construction stage with the industry's No. 1 third-party service and planning the facility itself as an 'operable asset' is the most realistic and effective strategy.

GS Construction is the builder most actively putting this strategy into practice. Xi has built the 'content' of its community spaces through collaborations with various No. 1 brands across industries.

It operates the complex's in-house theater, 'CGV Gold,' together with CGV, and in some complexes it has brought in Starbucks instead of an unmanned café and operates it exclusively for residents. There are also cases where an offline, curation-based bookstore has been installed in the complex with Kyobo Book Centre, along with services that recommend books tailored to residents' tastes.

In this way, Xi is a brand that has been a pioneer in reflecting the philosophy of 'how to operate community spaces.' And this May, our company, Second Syndrome, signed a strategic business agreement with GS Construction and is now discussing the introduction of Mini Storage Darak's premium self-storage to Xi complexes.

<GS Construction X Second Syndrome MOU signing ceremony / Source: Second Syndrome>

The Critical Problems with Existing In-Unit Storage Rooms

In-unit storage rooms have become an essential element in the sales planning of newly built apartments. According to Real Estate 114, as of 2023, about 83% of apartments sold in the Seoul metropolitan area provided in-unit storage, and in resident surveys, 76% answered that whether or not there is an in-unit storage room affects their apartment choice.

In-unit storage rooms are a storage alternative that can distribute belongings without encroaching on indoor space, effectively securing an additional 0.7 to 1.5 pyeong per household. They are especially suitable for storing bulky but infrequently used items such as camping gear, golf bags, and strollers.

<Apartment in-unit storage fire incident / Source: each media outlet's website>

However, the problem is that after installation, these spaces are effectively left unattended with no operating entity. Most complexes merely place a lattice-type mesh fence in a shared underground area, without even basic safety measures such as temperature and humidity control, ventilation, CCTV, access control, and fire response.

As a result, facilities intended for resident convenience are sometimes causing rather than preventing risk and inconvenience. Because there is no party responsible for safety management of the storage facility, fire incidents have also occurred due to flammable materials stored at residents' discretion, often causing damage to life and property.

In addition, there was a case at a high-end apartment in Seoul where residents filed damage claims against the construction company, saying items stored in the in-unit storage room had been damaged by mold or insects. Because the management entity is unclear, conflicts among residents recur, and in the end usage rates keep declining.

<Examples of leaks and item damage in apartment in-unit storage rooms / Source: Second Syndrome>

Premium Self-Storage That Replaces In-Unit Storage Rooms

The household storage service being prepared by GS Construction and Darak together is a new level of premium self-storage that adds operational management functions and previously unavailable supplementary services to existing in-unit storage rooms.

Based on the technology and data accumulated through operating more than 180 locations nationwide, Darak is creating a high-quality storage environment optimized for apartment complexes. Through automatic temperature and humidity monitoring, mobile app-based access control, 24-hour CCTV, and real-time sensor detection systems, the storage space within the complex can be transformed into the safest and most comfortable space.

In addition, a dedicated mobile app will be linked with Xi's home IoT system, allowing residents to check the status of their storage unit in real time from home and manage stored items. Various value-added services will be provided, including a Digital Inventory feature that automatically creates a list when items are photographed, a courier integration service that lets items in the storage unit be shipped immediately, and a second-hand trading function that makes it easy for residents to exchange and sell items to one another.

In addition, we are considering introducing a concierge service that safely transports items from the front of the home to the storage unit, as well as Darak Cloud, a service that stores items requiring long-term storage in an external Darak hub warehouse.

Darak goes beyond simply providing space and also offers the technology and operational capabilities to evolve in-unit storage into a community platform connected to residents' lifestyles. This will bring to life an innovation that smartly extends the entire residential experience beyond simple storage.

<Storage service through integration with Home IoT / Source: Second Syndrome>

The New Standard for Apartment Communities Serviced Storage

This agreement with GS Construction is not just the introduction of a facility, but the starting point for setting a new standard for in-unit storage combined with operation.

In-unit storage is no longer just a supplementary space. It is an operating asset directly connected to residents' lives and one that affects the trust and sustainability of an apartment brand. A single in-unit storage room can change a complex's premium image, which in turn leads to stronger sales competitiveness and greater satisfaction for actual residents.

Going forward, Darak will create innovative cases that turn in-unit storage rooms into operable spaces. And this trend could spread beyond apartment complexes to senior housing, serviced residences, and urban residential products as a whole.