Despite Successive Taxation and Loan Regulations, a Rush for Lotto Subscription

Gaepo DH Lottery System 112㎡A
Highest Competition Rate Reaches 115.93 to 1
Sangye Lotte Castle Lottery System 97㎡
Competition Rate Soars to 597 to 1

[Asia Economy Reporter Donghyun Choi] Despite the government's successive tax and loan regulations, the 'lottery subscription' craze remains strong in the new housing supply market.

According to Korea Real Estate Agency's Subscription Home on the 22nd, the DH Firstier I-Park in Gaepo-dong, Gangnam-gu, Seoul, which received first-priority subscriptions the day before, recorded an average competition rate of 22.89 to 1 with 25,991 applicants for 1,135 units. The highest competition rate came from the lottery-based quota. In speculative overheated districts such as Seoul, for units exceeding 85㎡ (exclusive area), winners are selected 50% by point system and 50% by lottery. The 112㎡ A type saw 7,173 applicants for 46 units, reaching a competition rate of 155.93 to 1. The 112㎡ B type also recorded a competition rate of 76.62 to 1, with the remaining lottery-based quotas showing relatively higher competition rates than the point-based quotas.

On the same day, the Lotte Castle Signature in Sanggye-dong, Nowon-gu, which also held first-priority subscriptions, saw 25,484 applicants for 432 units, recording an average competition rate of 59 to 1. This complex also experienced fiercer competition in the lottery-based quotas than in the point-based quotas. The 97㎡ lottery-based quota, with only 14 units, attracted 8,360 applicants, pushing the competition rate up to 597 to 1. This is analyzed to be due to a large influx of non-homeowners with low subscription points, which are scored based on dependent family members, period of non-homeownership, and subscription account duration. Earlier, on the 17th, about 47,000 people applied for first-priority subscriptions for Prugio Bellarte in Gwacheon, and on the 16th, 14,705 people applied for first-priority subscriptions for Gireum Station Lotte Castle Twin Gold in Gireum-dong, Seongbuk-gu. Recently, tens of thousands of applicants have been flocking to the metropolitan area, intensifying competition.

The subscription fever is also believed to be influenced by concerns over supply contraction due to the private land price ceiling system to be implemented from the end of this month, and worries about a decrease in general non-homeowner allocation due to the expansion of special supply proportions for first-time buyers. The anxiety that 'winning opportunities might decrease' has led to a surge in 'last-chance' demand.

According to Seoul City, including the subscription complexes on this day, about 6,000 apartments are expected to be supplied in Seoul until the exemption period for the price ceiling system ends on the 28th. Seoul City had anticipated a supply of 11,000 units, but the general supply alone of 4,786 units in the Dunchon-dong Jugong Apartments in Gangdong-gu is likely to be delayed due to internal disputes within the association, raising the possibility of project schedule postponement.

Meanwhile, the first-priority subscription competition rate in Seoul in the first half of this year soared to 75.6 to 1, a sharp increase compared to 11.6 to 1 in the first half of 2017 when the Moon Jae-in administration took office (May 2017). The average winning cutoff score for new apartments in Seoul rose by 10 points in three years to 54.8 points. Ham Young-jin, head of the Zigbang Big Data Lab, said, "As complexes known as lottery subscriptions are supplied, demanders' interest has increased, and the demand to avoid the price ceiling system has also contributed to the heating of the first half supply market," adding, "Polarization, where subscription demand concentrates on projects with good locations and popularity, will continue."

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