Newlyweds with Low Bonus Points, Aim for the First-Time Special Supply

3rd New Town Pre-Subscription Guide
100% Lottery System Requires Children
Excludes Young Adults Starting Careers

Newlywed Special Supply Based on Point System
Favorable for Multiple Children and Long-Term Local Residents
Income Requirements May Be Relaxed

Long-Term Account Holders Have Advantage in General Supply

[Asia Economy Reporter Donghyun Choi] As the government announced the pre-subscription schedule for 60,000 public housing units in the metropolitan area from July next year to 2022, homebuyers are actively strategizing their subscription plans. Even for the 3rd New Towns alone, the pre-subscription volume reaches 22,000 units, and with various public land sales scattered throughout, many are already relocating their residences to increase their chances of winning. Experts advise that since eligibility criteria and winning probabilities vary depending on the scale and location of the district, designation as a regulated area, and types of special supply, thorough prior information gathering is essential.

Newlywed Special Supply Reserved for Multi-Child Local Residents

Pre-subscription, which is supplied 100% through public sales, is divided into general supply and special supply. Typically, 15% of public sale housing is allocated to general supply, and 85% to special supply. The government has allocated 33,000 units, or 55% of this pre-subscription volume, to special supply categories such as newlyweds and first-time homebuyers. Although both categories target recently married, non-homeowning households, their eligibility criteria and winner selection methods differ.

The winner selection for newlywed special supply is primarily based on a point system. In case of a tie, a lottery system is applied. Households with children are assigned first priority, and those without children second priority. The shorter the marriage period, the more children, and the longer the residence period in the relevant area, the more advantageous in the point competition. Excluding income requirements, the maximum points per category are 3 points, with a total perfect score of 13 points. Although the government relaxed some income requirements through the 7·10 measures, this applies only to newlywed hope towns and private housing priced above 600 million KRW. Therefore, for newlywed special supply units priced below 600 million KRW in this pre-subscription, applicants must meet income criteria of 100% (120% for dual-income) of the average monthly urban worker income. For households of three or fewer, the monthly income limit is 5,554,983 KRW. However, Minister Kim Hyun-mi of the Ministry of Land, Infrastructure and Transport announced the day before that income requirements for newlywed and first-time homebuyer special supply may be relaxed, leaving room for adjustments before the pre-subscription.

First-Time Homebuyer Special Supply: Worth Considering Relocation

The first-time homebuyer special supply is a 100% lottery system, making it attractive for newlyweds with low points. Both married and unmarried or divorced individuals can apply, but applicants must have children. There is also a requirement to have worked for at least five years as a worker or self-employed, excluding social beginners. The income criteria are the same as for the newlywed special supply. For example, in Hanam Gyosan, 30% of winners are allocated to the local area, 20% to Gyeonggi Province, and 50% to Seoul and Incheon, with priority given in that order. First, 30% of winners are selected from the local area. Second, 20% are selected from local area losers and Gyeonggi residents combined. Finally, the remaining 50% are selected from local and Gyeonggi losers combined with Seoul and Incheon residents. Since local residents have three chances in the lottery, their winning probability is relatively higher.

Therefore, experts evaluate that if aiming for popular new towns like Hanam Gyosan or prime public sales in Seoul, relocating to the relevant area is essential to increase winning chances. Ham Young-jin, head of Zigbang Big Data Lab, said, "Small-scale public land sales concentrate subscription opportunities on local residents, so it is important to understand the scale of the land and the residence areas of subscription waiters," adding, "Since pre-subscription will proceed sequentially in 2021 and 2022, it is necessary to carefully plan a roadmap according to the schedule."

Long-Term Account Holders Should Aim for General Supply

General supply is conducted by a sequential ranking system rather than a point system that favors those with many dependents. Since it accounts for only 15% of the total supply, long-term account holders have an advantage. The sequential ranking system selects winners based on the length of non-homeownership period of at least three years; for units larger than 40㎡ (exclusive area), winners are chosen in order of the highest total subscription savings, and for units 40㎡ or smaller, by the number of subscription payments made. Subscription savings recognize monthly payments up to 100,000 KRW, so the longer the subscription period, the better.

Current regulations limit the ratio of 60?85㎡ units in public sale complexes to no more than 15%, but the government plans to revise the rules to allow up to 50%, so those wanting larger apartments should also pay attention to their total savings amount.

For example, in the Jade Xi complex in the Knowledge Information Town of Gwacheon, Gyeonggi Province, supplied through public sales, the winning cutoff for total savings ranged from 17.4 million to 26.46 million KRW. The number of payments ranged from 14 years and 6 months to 22 years. Generally, Gwacheon residents won with savings and payment counts below the median winning range, while residents of Gyeonggi or Seoul and Incheon were selected above that range. If payment counts and total savings are insufficient, relocating to the relevant area to become a priority supply candidate is a way to increase winning chances.

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