Blueground, a global real estate proptech corporation providing short-term rental services in 48 cities worldwide, has completed 60% of its contracts just a month after launching its services in South Korea. Customers include not only global company employees but also overseas Koreans and local residents. Blueground's first location in Seoul is the high-end officetel 'Asti Nonhyeon' in Nonhyeon-dong, Gangnam-gu. Blueground Korea is considering 'Montreal Hannam' in Hannam-dong, Yongsan-gu, for its second location.
Jeong Eul-yong, CEO of Blueground Korea, noted, 'As Seoul has become a global city, we anticipate a surge in short-term rental demand,' adding, 'Our goal is to secure 150 accommodations this year and 2,000 within the next decade.'
While Blueground may be a relatively unknown corporation in Korea, it is widely recognized globally as a provider of short-term rental services. The company caters primarily to global employees and business travelers, offering residences for stays ranging from a month to as long as a year.
After establishing a Korean corporation in July 2024, Jeong Eul-yong, who has experience as a developer and in corporate brokerage, was appointed as CEO. Jeong selected 'Asti Nonhyeon,' located a 3-minute walk from Gangnam-gu Office Station (Line 7 and Suin-Bundang Line), for the first location, as it met the global standards set by Blueground. The company offers 'full-furnished' residences, equipped with everything from cutlery to dishes.
The locations must be near subway stations and in business districts. Interiors should include 1.5-room or 2-room layouts that separate bedrooms and kitchens, with windows in each space being essential. Additionally, there are detailed specifications for bed sizes of double or larger and the positioning of frames. Blueground's principle is to ensure that customers feel like their residence is 'home' no matter which city they choose through its services. Currently, Blueground provides 15,000 residences across 48 cities worldwide. As demand for its housing services increases, the company is also preparing for a Nasdaq listing.
Jeong stated, 'In a way, we can say that we are creating a 'Starbucks model' in the short-term rental market,' emphasizing that 'guaranteeing the quality of housing wherever one goes is the key.'
Blueground Korea began operating its first location in April. Out of a total of 81 units in 'Asti Nonhyeon,' 24 units are being leased as whole. Within a month of opening, about 15 to 16 units—approximately 60%—have been contracted. This success is attributed to exploiting the gaps in the rental market in Korea, where trust between landlords and tenants is not robust. Among the customers are foreigners, as well as many overseas Koreans and local residents. Some customers initially signed contracts for a month but extended their stay to six months. The average global housing period for Blueground is 4.5 months.
Jeong decided to open the second location in Hannam-dong, Yongsan-gu. Currently, discussions with 'Montreal Hannam' are in the final stages, with plans to lease about five units. Negotiations are also ongoing for residence rentals in areas like Jamsil and Jongno. The company plans to continue expanding, focusing on areas with high foreign preferences, such as Mapo and Seongsu.
Jeong mentioned that there has been significant interest in rental requests for high-end officetels and urban-type housing, adding, 'We are reviewing conditions to see if they meet Blueground's requirements first.'
Jeong explained that Blueground has substantial advantages in terms of convenience and pricing. Reservations and payments can be made through an app, and a 24-hour customer experience team responds to inquiries. In terms of pricing, it has significant benefits. Currently, staying for a month at the first location costs around 7 to 8 million won, while staying in a 1.5 to 2-room hotel costs between 12 and 13 million won. The rental price decreases the longer the stay. Blueground's strategy allows it to offer residences for more than 30% less than hotel prices.
As the reputation of Blueground Korea’s services spreads, inquiries continue from both implementation companies and individual landlords. Major corporations have also inquired whether they can assist in consolidating residences for trainees and business travelers. Blueground Korea has scheduled information sessions for the 14th and 23rd of this month to address this demand.
Jeong stated, 'With K-pop and K-culture gaining global popularity, there is a growing demand for visits to Seoul,' adding, 'The head office believes that the short-term rental market in Korea can grow and has plans for rapid expansion.' He continued, 'We believe the short-term rental market will grow by creating a structure that is trustworthy for both landlords and tenants.'