Starting July Next Year, 60,000 Units 'Pre-Subscription' to Begin... Will It Calm Panic Buying Among People in Their 30s?

Pre-Booking for 3rd New Towns and Others Starts from July Next Year
Supply Ahead of Main Subscription by 1-2 Years to Ease Housing Instability
Attention on Whether It Can Calm Panic Buying Among People in Their 30s

Panoramic view of Namyangju Wangsuk District, 3rd New Town (Photo by LH)

[Asia Economy Reporter Moon Jiwon] The government will officially implement the 'pre-sale subscription system,' which supplies housing 1 to 2 years earlier than the main subscription, focusing on the 3rd New Towns starting from July next year. A total of 60,000 units will be targeted, with 30,000 units in 2021 and another 30,000 units in 2022. Since many of the units include those in the 3rd New Towns relatively close to Seoul, attention is focused on whether this will help stabilize housing prices by dispersing the 'panic buying' demand among people in their 30s, as the government hopes.

According to the Ministry of Land, Infrastructure and Transport on the 8th, the government will conduct pre-sale subscriptions in the second half of next year for 30,000 units in the 3rd New Towns such as Namyangju Wangsuk, Hanam Gyosan, Incheon Gyeyang, Goyang Changneung, Bucheon Daejang, as well as Seongnam and Gwacheon. The remaining 30,000 units will begin recruiting residents from the first half of 2022. In addition to the 3rd New Towns, some units from the Yongsan Maintenance Depot site in Seoul and sites in Gangseo, Magok, and Eunpyeong are also included.

Earlier, through the August 4 Housing Supply Plan, the government announced that it would increase the pre-sale subscription units from the original 9,000 units to 60,000 units. This is to enhance predictability for housing ownership among genuine homebuyers without homes and to ensure residential stability while resolving instability in the real estate market. In fact, the government expects that the pre-sale subscription supply will significantly calm the increasing 'panic buying' mainly among people in their 30s.

Previously, Minister of Land, Infrastructure and Transport Kim Hyun-mi pointed out the 'young adults pulling out all stops (Yeongkkeul)' phenomenon among people in their 30s during the National Assembly Land, Infrastructure and Transport Committee meeting on the 25th of last month, saying, "Even for the 3rd New Towns alone, pre-sale subscriptions will be held next year, and plans to supply more than 200,000 units were announced just this year. There will be many good opportunities for people in their 30s."

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki also emphasized at the Real Estate Market Inspection Ministerial Meeting held on the 2nd, "Just the expectation of winning a subscription and having a home to move into within a few years will reduce housing anxiety among genuine buyers and ease purchase demand, which will help stabilize the market."

The 3rd New Towns are considered one of the best solutions to the housing shortage, especially since it is difficult to further expand housing supply in the metropolitan area. They are located close to Seoul with good locations, and comprehensive transportation plans to improve accessibility are being concretely prepared. According to the Ministry of Land, Infrastructure and Transport, since the 3rd New Towns-related website was launched on the 6th of last month, 650,000 people have visited within a month, and 120,000 people have applied for the subscription schedule notification service.

According to the Ministry's survey, interest in the 3rd New Towns was highest among people in their 30s (38%), followed by those in their 40s (31%) and 50s (16%). The Ministry explained, "Interest was high among the 30s and 40s age groups, and 95% cited personal residence as the reason for applying," adding, "Many citizens consider the 3rd New Towns as an opportunity to own their own home."

Since both private and public sectors are subject to the price ceiling system, advantages include affordable housing prices, high accessibility to Seoul, and a pleasant living environment. Preference by new town is as follows: Hanam Gyosan (20%), Goyang Changneung (17%), Gwacheon (17%), Namyangju Wangsuk (15%), Bucheon Daejang (13%), and Incheon Gyeyang (11%). Newlyweds and first-time special supply applicants with low subscription scores can also expect to win.

Interest in the 3rd New Towns was highest among residents of Gyeonggi Province at 58%, but residents of Seoul accounted for 31% of the total, so it is expected to have an effect of dispersing housing demand from Seoul. However, there are also concerns that the effect on stabilizing housing prices may not be as significant as expected. An industry insider said, "It may soothe the anxiety of people in their 30s in the mid to long term," but added, "Considering the volume, residency requirements, and Seoul buyers' sentiment, the effect on housing price stabilization may be limited."

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