Intensified Subscription Concentration in Profitable Popular Areas

Complete Survey of 177 Private Apartments in the Capital Area Last Year
27 Sites with Over 10,000 Applicants, 70% of the Total

[Asia Economy Reporter Donghyun Choi] The concentration phenomenon in the metropolitan area housing subscription market is intensifying. Applicants are flocking only to certain profitable complexes, resulting in triple-digit competition rates becoming common. In particular, last year, among 177 private apartment complexes in the metropolitan area, 27 complexes attracted more than 10,000 applicants each, accounting for 70% of the total applicants.

On the 2nd, Asia Economy conducted a full survey of subscription results for 177 complexes supplied (based on subscription application dates) in the metropolitan area including Seoul, Incheon, and Gyeonggi last year. It was found that 27 complexes exceeded 10,000 subscription applications: 12 in Seoul, 10 in Gyeonggi, and 5 in Incheon. Among the 12 in Seoul, 7 were in the Gangnam area, and in Gyeonggi, 3 were in Wirye New Town. In Incheon, 4 out of 5 complexes were apartments in Songdo International City. Notably, out of the total 984,453 applicants in the metropolitan area, 676,597 applied to these 27 complexes. This means that 68% of all applicants concentrated on the top 15% of apartments by number of applicants.

The concentration phenomenon was most severe in Gyeonggi Province. Especially in areas like Wirye, Suwon, and Anyang, which were recently designated as regulated areas due to the 'balloon effect' on metropolitan housing prices, tens of thousands of applicants concentrated on specific complexes. Last year, 83 complexes were supplied in Gyeonggi, but only 10 complexes had more than 10,000 applicants. These 10 complexes accounted for 6,651 units, which is 17.3% of the total 38,356 units supplied, but attracted 322,930 applicants, 75% of the total 430,575 applicants. Moreover, 24 complexes (28.9%) had fewer applicants than the number of units supplied. The area where applicants concentrated most in Gyeonggi was Wirye New Town. Four complexes supplied in Wirye last year attracted 243,928 applicants, 56% of all Gyeonggi apartment applicants. For example, Hillstate Prugio Suwon recorded the highest number of subscription accounts in the entire metropolitan area with 74,519 applicants for a single complex.

In Seoul, 12 complexes, accounting for 21% of the total 56 complexes, attracted 209,760 applicants, which is 62% of all applicants. Due to the widespread rise in housing prices, applicants also flocked to non-Gangnam area apartments, resulting in a relatively lower concentration on specific complexes. In Incheon, the division between popular and unpopular complexes was most pronounced. Among 2,4716 units, 2,535 units (10.2%) attracted 143,907 applicants, 66.5% of the total 216,241 applicants. Conversely, 14 complexes, accounting for 37% of all supplied complexes, failed to attract enough applicants to fill the units, resulting in a large-scale undersubscription.

This year, the subscription concentration phenomenon appears to be intensifying further. On the 28th of last month, the 'Jungheung S-Class' in Wirye New Town, which received general first-priority subscriptions, recorded an average competition rate of 104.3 to 1 with 44,448 applicants for 466 units. This is the second time this year that triple-digit competition rates have been recorded in Gyeonggi, following the Suwon Maegyo Station Prugio SK View (145.7 to 1) launched last month. Last year, only one complex in Gyeonggi, Wirye Foret Ja, recorded a triple-digit first-priority competition rate (130.3 to 1).

Professor Daejung Kwon of Myongji University Graduate School of Real Estate said, "This year, due to the government's pinpoint regulations and the impact of the price ceiling system, the concentration phenomenon will intensify further. On the other hand, with the government's strengthened reconstruction regulations and technological advances such as smart homes, the future value of existing complexes will decline further, leading to a more pronounced polarization phenomenon." Related article☞<'No Home = Low Income' frame causes reverse discrimination... Coining of the term 'Cheongmupi-sa'>

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