[Practical Finance] 3rd Phase New Towns and Prime Complexes... To Win, Find the 'Sajeon'

<Tips for Public Pre-Subscription 'Sajeon Cheongyak' in July Next Year>

Carefully Check Conditions Like No Home Ownership Before 'Sajeon'
Subscription Account Required for 85㎡ National Housing Eligible for 'Jeon'yong'
Can Apply for Other Main Subscriptions Even If 'Cheong'yak' Is Won
Recommend Large-Scale Land Development Areas to Cover 'Yak' Points

[Asia Economy Reporter Onyu Lim] Starting from July next year, the preliminary subscription for 60,000 public sale households supplied in the metropolitan area will be in full swing. Since the preliminary subscription price is expected to be about 30% cheaper than the market price, it is expected to be a good opportunity for non-homeowners to secure their own homes. Although there is still nearly 10 months left until the subscription, due to the nature of the subscription system that gives priority to residents of the relevant area, in some regions, the battle for winning is intensifying, with people moving their addresses to meet residency requirements.

The preliminary subscription supply is dispersed across various locations, from the 3rd New Towns with a large share such as Namyangju Wangsuk and Hanam Gyosan, to Seongnam Bokjeong with high accessibility to Seoul, and the 'prime' Yongsan Railroad Maintenance Depot site, requiring a strategic approach. Experts advise that since the lottery methods differ depending on general and special supply, and the supply volume varies by region, a strategic approach is necessary to increase the chances of winning.

Only non-homeowners residing in the metropolitan area can apply... Note that the proportion of supply for the relevant area varies by region

First, to qualify for the preliminary subscription, one must be a non-homeowner and reside in Seoul, Gyeonggi, or Incheon. Also, you must have a subscription savings account eligible for national housing (exclusive area 85㎡ or less). This includes subscription savings (national housing) or comprehensive housing subscription savings (national housing/private housing).

Public sales have a special supply ratio of 85%, including 30% for newlyweds, 25% for first-time life applicants, 15% for institution recommendations, 10% for multi-child families, and 5% for elderly parent support. You should carefully check which category you belong to. The general supply of 15% is selected in order of the highest subscription savings payment amount through a ranking system. Only up to 100,000 KRW per month is recognized for payment amount.

Among the preliminary subscription target sites, it is also important to note that the priority supply (1st priority) conditions differ depending on the development scale. Small to medium-sized sites such as idle land in downtown Seoul are 100% prioritized for residents, whereas large-scale (over 660,000㎡) land development districts such as the 3rd New Towns and Taereung Golf Course limit this ratio to 50%. In Incheon (Seoul), 50% is allocated to Incheon (Seoul) residents, and the remaining 50% is allocated as a priority quota to Seoul (Incheon) and Gyeonggi residents. However, the ratio for Gyeonggi is somewhat lower at 30%. In the case of Hanam Gyosan, priority supply is distributed as 30% for Hanam citizens, 20% for Gyeonggi residents, and 50% for Seoul and Incheon residents.

Even if you win the preliminary subscription, you can still participate in other main subscriptions. However, if you win another main subscription, the existing preliminary subscription is automatically forfeited. Also, until the main subscription, where the final move-in decision is made, you are not subject to re-winning restrictions.

"Winning chances are higher in 3rd New Towns with large supply"… Hanam Gyosan is the most preferred

Perspective view of Hanam Gyosan, the 3rd New Town (Provided by the Ministry of Land, Infrastructure and Transport)

Experts point to applying for large-scale land development districts as the most certain way to increase winning probability. Among the total 120,000 households in the 3rd New Towns, 22,000 households are preliminary subscription supplies, accounting for 30% of the 60,000 preliminary subscription units this time.

Looking at the schedule by district, starting with Incheon Gyeyang (1,100 households) in July-August next year, followed by Namyangju Wangsuk2 (1,500 households) in September-October, and in November-December, Namyangju Wangsuk (2,400 households), Bucheon Daejang (2,000 households), Goyang Changneung (1,600 households), and Hanam Gyosan (1,100 households) will be released.

In 2022, 12,500 households are subject to preliminary subscription, including Namyangju Wangsuk (4,000 households), Incheon Gyeyang (1,500 households), Goyang Changneung (2,500 households), Bucheon Daejang (1,000 households), Namyangju Wangsuk2 (1,000 households), and Hanam Gyosan (2,500 households).

Among these, Hanam Gyosan is the most preferred location. It is attracting attention due to excellent access to Gangnam and the opening of the Seoul Subway Line 5 extension Hanam Line on the 8th of last month, improving transportation conditions. The largest preliminary subscription scale is Namyangju Wangsuk, with a total of 8,900 households released by 2022 combining districts 1 and 2.

Ham Young-jin, head of Zigbang Big Data Lab, said, "If your score is low and you do not qualify for special supply, it is wise to apply for large-scale land development districts rather than small to medium-sized sites to increase your chances of winning."

"Even with high competition, a smart single home is in Seoul"… Also pay attention to Gyeonggi supply adjacent to Seoul

On the 8th, the government disclosed detailed information about the pre-sale of public apartments in the Seoul metropolitan area. From July next year until 2022, pre-sales will be conducted for 60,000 public apartments in major public housing sites in the metropolitan area, including the 3rd New Towns such as Gyo-san District in Hanam, Gyeonggi Province, Gwacheon District, and the Yongsan Maintenance Depot site in Seoul. To improve the quality of public apartments, the government decided to increase the supply ratio of medium-sized housing units measuring 60 to 85 square meters to up to 50%. Pre-sale is a system that supplies apartments early, one to two years before the main sale. If winners maintain the requirement of being non-homeowners until the main sale, 100% move-in is guaranteed. The photo shows the Yongsan Maintenance Depot site on that day. Photo by Moon Honam munonam@

Seoul's preliminary subscription supply will be released in large quantities in 2022. Including the Yongsan Railroad Maintenance Depot supplied in the second half of 2022, areas such as Gangseo (300 households), Magok (200 households), Godeok Gangil (500 households), and Eunpyeong (100 households) will accept preliminary subscriptions.

Before that, the military site near Noryangjin Station scheduled for July-August next year (200 households) will be available for preliminary subscription. It is a prime location adjacent to Yeouido. The military site at Namtaeryeong scheduled for September-October (300 households) is the only complex in the Gangnam area among the disclosed preliminary subscription targets so far. Since the supply is small, the competition rate is expected to be high.

Although the supply is smaller than the 3rd New Towns, Gyeonggi districts with excellent locations also deserve attention. Among the preliminary subscription targets in July-August next year, Wirye (300 households) and Seongnam Bokjeong 1 and 2 districts (1,000 households) stand out. Seongnam Bokjeong district is adjacent to the southern part of Wirye New Town. Moreover, these areas are expected to be popular due to transportation benefits such as the scheduled opening of Line 8 Wirye Station.

Seongnam Sinchon (200 households) and Seongnam Nakseong (800 households), released in September-October, are also evaluated as having excellent locations. Gwacheon Gwacheon district (1,800 households), entering preliminary subscription in November-December, has a quasi-Gangnam location with good access to Seoul Gangnam.

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