This Year's Seoul Subscription Competition Rate 'All-Time High'... Average 68 to 1

Average Seoul Apartment Competition Ratio 68 to 1 Until September, Highest Annual Record Since Survey Began
Winning Score Average Exceeds 60 Points, 57% in 60-70 Point Range

[Asia Economy Reporter Yuri Kim] The apartment subscription market in Seoul is becoming increasingly heated.

According to Real Estate 114 on the 28th, the average subscription competition rate for apartments in Seoul until September this year was 68 to 1, the highest competition rate since the survey began in 2002. In August, among the 10 housing types of 'DMC SK View I-Park Foret' sold in Susaek Jeungsan New Town (Redevelopment Promotion District), three recorded competition rates exceeding 1000 to 1. As preference for apartments supplied at prices cheaper than market prices due to price controls increases, demand appears to be concentrated in the subscription market.

As subscription competition intensifies, winning scores are also soaring. Analyzing the average winning scores by range for 6,148 general supply units of private apartments in Seoul that received subscription applications until September this year, the number of units in the 60 to 70 points range was 3,500 units (56.9%), the largest share. Adding 2,144 units (34.9%) that won with an average score between 50 and 60 points, more than 90% of the total general supply units went to applicants with scores between 50 and 70 points on average.

Compared to last year’s same period, when only 4,289 units (57.1%) out of 7,514 general supply units in Seoul were won by applicants with average scores between 50 and 70 points, it is analyzed that the subscription scores required for a stable win have significantly increased this year. In fact, in the Gangnam 3 districts (Gangnam, Seocho, Songpa), where housing supply is expected to decrease due to reconstruction regulations and the private land price ceiling system, the score cut-off rose to 46 points from 25 points last year. Unlike last year, when there were no perfect score winners, this year perfect score winners (84 points) appeared in housing types priced below 900 million KRW in two complexes: Heukseok River Park Xi in Dongjak-gu and Sinmokdong Paragon in Yangcheon-gu. Ye Kyung-hee, senior researcher at Real Estate 114, predicted, "Until September, no apartments subject to the price ceiling system were supplied as approvals were rushed, but if price ceiling system housing is supplied later, competition for scores will become even fiercer."

As winning scores rise, it has become difficult for demanders in their 30s to expect to own a home in Seoul through subscription. Even excluding dependent family points, it takes more than 15 years to earn full points for the period of being homeless and subscription account membership, and people in their 30s lack the absolute time to accumulate points. Although a special supply for first-time homebuyers is planned to be introduced in private housing, the entry barrier to Seoul’s subscription market, where general supply units themselves are scarce, remains high. Senior researcher Ye said, "For young people, the pre-subscription for the 3rd New Town, where a large volume of supply is expected and competition is relatively lower compared to Seoul, appears to be a niche market for home ownership."

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