'Maegyo Station Prugio SK View' Launches Last Sale in Suwon Amid 'Regulatory Scope' Restrictions

Priority Subscription on the 19th... High Competition Expected Due to Many Lottery-Based Supplies
Resident Recruitment Announcement Already Completed, Escaping the '19th Regulation' Impact Zone

[Asia Economy Reporter Lee Chun-hee] On the 19th, the subscription for the large-scale reconstruction complex 'Maegyo Station Prugio SK View' apartment was held in Suwon, which is expected to be the core target of the government's 19th real estate policy, drawing significant attention to the results. Although Paldal-gu, where the complex is located, was already designated as a regulated area at the end of 2018, the outcome of this subscription is expected to influence not only the prices of surrounding complexes but also the overall housing market trend in Suwon.

According to industry sources on the 19th, 'Maegyo Station Prugio SK View,' supplied in Maegyo-dong, Paldal-gu, Suwon, is accepting first-priority general subscriptions through the Korea Real Estate Board's 'Subscription Home' on the same day. As this is the first large-scale sale in the metropolitan area this year and is located in the heart of the Suwon-Yongin-Seongnam (known as 'Su-Yong-Seong') region, which has recently experienced a rapid surge in housing prices and overheating, a large number of applicants are expected.

The nearby 'Hillstate Prugio Suwon,' which was sold in December last year, attracted 74,519 applicants for 951 units, showing an average competition rate of 78 to 1. Especially, in the subscription for remaining unsold units held on the 4th, only 42 units were supplied, but 67,965 applicants flooded in, temporarily causing the application site to crash.

Maegyo Station Prugio SK View also showed high competition rates in the special supply subscription held the day before. For 721 special supply units, 12,096 people applied, showing an average competition rate of 16.8 to 1. For the 59㎡ (exclusive area) A type, 2,151 people applied for 99 units, reaching a competition rate of 21.7 to 1. For general sales, applications are accepted for a total of 1,074 units including ▲59㎡A 135 units ▲59㎡B 67 units ▲59㎡C 21 units ▲74㎡A 110 units ▲74㎡B 220 units ▲84㎡ 405 units ▲99㎡ 92 units ▲110㎡ 24 units.

▲ Construction site of 'Maegyo Station Prugio SK View' in Paldal-gu, Suwon-si, Gyeonggi-do (Photo by Lee Chunhee)

Since the resident recruitment announcement for this complex was already completed on the 7th, it is exempt from the direct impact of additional regulations announced on the 20th. Even if Paldal-gu, currently a regulated area, is designated as a speculative overheating district and regulations are strengthened, rules related to loan limits and resale restrictions will not be applied retroactively. Accordingly, interim payment loans are possible within the maximum loan-to-value (LTV) ratio of 60%. Although there is speculation that the government may lower the LTV limit to 50% for regulated areas, since the resident recruitment announcement has already been made, this will also not be applied retroactively.

The fact that a significant portion of the units are supplied by lottery and that the resale restriction period is short at six months also contributes to the expectation of high subscription competition rates. Among units under 85㎡, only 40% are allocated by the point system, while the remaining 60% are decided by lottery. Apartments over 85㎡, which are medium to large-sized, are supplied entirely by lottery. Because of this, it is expected that not only young people with low subscription points but also one-homeowners will flock to apply. From August 27, resale of pre-sale rights will be freely allowed, so the industry expects considerable investment demand aiming for short-term price gains.

The sale price for the 84㎡ unit was set at 652 million KRW (standard floor). Considering that the pre-sale right for the nearby Hillstate Prugio Suwon was actually traded at 770.7 million KRW on the 11th of last month, a minimum price gain of over 100 million KRW is possible upon resale. Kim (30), an office worker in Gwonseon-gu, said, "All the office staff are planning to apply aiming for the resale premium."

However, the obligation to submit a funding plan, which currently applies to houses over 300 million KRW in speculative overheating districts, may be expanded to houses over 300 million KRW in speculative overheating and regulated areas, and houses over 600 million KRW in non-regulated areas. The contract signing period for this complex is from the 16th to the 24th of next month. Since the amendment to the 'Enforcement Decree of the Real Estate Transaction Reporting Act,' which includes related provisions, is likely to be implemented next month, whether the regulations apply will depend on the timing of enforcement. The resident recruitment announcement from the company already includes a notice stating that "submission of supporting documents for the funding plan may have to be done directly by the contract holder, and responsibility for non-submission lies with the contract holder," in accordance with the amendment to the enforcement decree.

This content was produced with the assistance of AI translation services.