Advance Pre-Subscription Approaching: Next Week Confirmed for 30,000 Units and Schedule

[Asia Economy Reporter Lee Chun-hee] The government’s detailed plan for pre-subscription, introduced to quell 'panic buying,' will be finalized next week.

On the 2nd, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held the '5th Real Estate Market Inspection Meeting of Related Ministers' at the Government Seoul Office to review the progress and plans for follow-up measures on real estate policies, including the pre-subscription for the 3rd New Towns.

Deputy Prime Minister Hong expressed his determination to accelerate the pre-subscription, which was expanded from the existing 9,000 households to 60,000 households (30,000 households next year and 30,000 households in 2022) through the August 4th real estate measures. The pre-subscription plan for the 30,000 households to be supplied next year is expected to be detailed next week.

Pre-subscription is a method of accepting applications in advance for some units 1 to 2 years before the main subscription. If selected in the pre-subscription, as long as the applicant maintains conditions such as being a non-homeowner until the main subscription, they are guaranteed 100% selection in the main subscription.

Typically, the public land development process proceeds as district designation → district plan approval → project approval → housing construction start → main subscription, and pre-subscription occurs after the district plan approval stage.

Deputy Prime Minister Hong stated, "We will finalize and announce the target sites and sales schedules at the related ministers’ meeting next week so that actual demanders can feel the expansion of housing supply as soon as possible and make their housing plans." He also named Taereung Golf Course, where 10,000 households are planned to be supplied, as one of the key sites in the August 4th measures.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, is delivering opening remarks at the '5th Real Estate Market Inspection Meeting of Related Ministers' held at the Government Seoul Office in Jongno-gu, Seoul on the 2nd. Photo by Kang Jin-hyung aymsdream@

Pre-subscription is likely to be supplied for public sale apartments. Unlike private sales, public sales select winners based on the amount paid into the subscription savings account rather than the subscription score when choosing general supply winners. The structure encourages steady monthly payments of up to 100,000 KRW into the subscription account to increase the chances of winning. Recently, for public sales in the metropolitan area, it is analyzed that a payment amount exceeding 22 million KRW accumulated over more than 18 years is required to be in a stable winning range.

Above all, to qualify for the first priority subscription in the area where the housing is built, applicants must have resided in the local government area for more than two years. For example, to qualify for the first priority in the Hanam Gyosan District pre-subscription, applicants must have lived in Hanam City, Gyeonggi Province, for more than two years before the subscription date.

For public land subscriptions in the metropolitan area, subscription eligibility is granted not only within the local government but also across the entire metropolitan area including Seoul, Gyeonggi, and Incheon. However, applicants from outside the local government may have lower priority or a smaller allocation ratio compared to the number of applicants, making winning less favorable.

The biggest advantage of pre-subscription is that it provides a stable opportunity for actual demanders. Re-winning restrictions do not apply to pre-subscription. In general subscriptions, once an applicant uses their subscription savings account and wins, they are restricted from applying for other housing subscriptions for up to 10 years from the winning date, whether they sign the contract or forfeit the winning.

However, pre-subscription winners are not subject to re-winning restrictions until the main subscription. Even if selected in the pre-subscription, applicants can apply for other subscriptions if better housing options appear within 1 to 2 years. If they succeed in another subscription and give up the pre-subscription, there are no particular disadvantages.

However, duplicate applications are not allowed during the pre-subscription period. Even if multiple pre-subscriptions are conducted over time, applicants can only apply for one.

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