Today's Launch of 'Gwacheon Jijeongta'... Strategies for Points and Lottery

[Asia Economy Reporter Yuri Kim] Starting from the 2nd, 'lottery apartments' subject to the price ceiling system will consecutively begin their subscription schedules in Gwacheon and Hanam, Gyeonggi Province. Due to the low pricing, capital gains are expected to reach up to 1 billion KRW, leading to record-breaking competition rates not only in special supply and first-priority point-based subscriptions but also in lottery-based subscriptions.

According to the real estate industry on the 2nd, within the Knowledge Information Town in Gwacheon, Gyeonggi Province, three blocks?▲Gwacheon Prugio Eoullim Lavieno (S4 Block, 679 households), ▲Gwacheon Lesento Desiang (S5 Block, 584 households), and ▲Gwacheon Prugio Ortus (S1 Block, 435 households)?will start their subscription schedules with special supply on this day. The first-priority subscription is also on the 3rd, but the announcement dates for winners differ, allowing for overlapping subscriptions.

The average sale price per 3.3㎡ for the three complexes was set at 23.76 million KRW, 23.73 million KRW, and 24.03 million KRW, respectively. The sale price for an 84㎡ (exclusive area) unit is around 800 million KRW. Considering that an 84㎡ unit (10th floor) in the nearby Wonmun-dong Raemian Sure (2,899 households) was traded at 1.435 billion KRW last month, a capital gain exceeding 600 million KRW is expected. There are even remarks calling this subscription a '1 billion KRW lottery subscription,' citing that an 84㎡ unit in Prugio Summit, which moved in last April, was traded up to 1.93 billion KRW.

Prugio Eoullim Lavieno consists of seven buildings from basement level 2 to ground level 35, with 388 small-to-medium units of 84㎡ and 291 units exceeding 85㎡ such as 99㎡, 105㎡, and 120㎡. Prugio Desiang is composed of 334 units under 85㎡ and 250 units over 85㎡, totaling 584 units. Prugio Ortus consists entirely of small-to-medium units under 85㎡, with 316 units of the niche 74㎡ size and 119 units of 84㎡.

Since the small-to-medium units are all selected by a point-based system and the medium-to-large units are half selected by lottery, subscription applicants need to carefully devise their subscription strategies considering their points and financial situations, experts advise. High-point applicants should target the under-85㎡ units, which are all selected by points. Especially in Gwacheon, a region highly preferred by demanders and often called a quasi-Gangnam area, the winning score threshold is expected to be at least similar to the mid-to-high 60s, considering that even single complexes in Seoul recently had winning cutoffs in the mid-to-high 60s.

Therefore, first-time homebuyers may consider aiming for the special supply for first-time buyers, which allocates 15% of the under-85㎡ units. This quota is given to prospective applicants who meet eligibility criteria such as an average monthly income of 130% of urban workers, and winners are selected by lottery.

Low-point applicants are expected to flock to the lottery system, which applies to half of the medium-to-large units over 85㎡. Among the 291 units over 85㎡ in Prugio Eoullim Lavieno and the 250 units in Prugio Desiang, about 270 units (half of 541 units) will be selected by lottery. However, within the lottery quota, 75% are prioritized for non-homeowners, and the remaining 25% compete among both non-homeowners and one-homeowners, meaning that about 67 one-homeowner replacement demanders will compete with non-homeowners.

All three complexes require a 20% down payment, 60% interim payment, and 20% balance payment. Interim payment loans are available up to 40% loan-to-value (LTV) ratio for housing types under 900 million KRW without existing mortgage loans in speculative overheated districts. The recruitment order is 30% for first-priority applicants residing in Gwacheon for over two years, 20% for first-priority applicants residing in Gyeonggi for over two years, and the remaining 50% for first-priority applicants residing in Seoul, Incheon, and Gyeonggi (less than two years).

Meanwhile, Gam-il Prugio Markver, a residential-commercial complex supplied in the Gam-il-dong area of Hanam, Gyeonggi Province, will conduct special supply on the 3rd and first-priority subscription on the 4th. With 496 units ranging from 84 to 114㎡, the average sale price per 3.3㎡ is 16.36 million KRW. Considering that the 84㎡ apartment prices in the nearby Misa Riverside City area exceed 1 billion KRW, the industry evaluates this apartment as priced at about half that level.

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