Seoul Subscription Average Competition Rate More Than Double Last Year

Impact of Rising House Prices and Implementation of the Subscription Ceiling System
First Priority Ratio Reaches 71 to 1 This Year
More Than Half of the Population Have Subscription Savings Accounts
Concerns Over Rising Jeonse Prices and Mid-Low Range Sale Prices

Prospective applicants are lined up at a model apartment home in Seoul.

[Asia Economy Reporter Choi Dong-hyun] This year, the average competition rate for apartment subscriptions in Seoul more than doubled compared to last year, due to rising housing prices and the implementation of the private land price ceiling system.

According to the Korea Real Estate Board's Subscription Home and real estate research firm Real Today on the 9th, the average competition rate for first-priority apartment subscriptions in Seoul this year until the 5th reached 71 to 1, which is 2.2 times the competition rate last year (31.6 to 1). The biggest cause is analyzed to be the surge in subscription demand as the gap between the sale price and market price widened due to the reimplementation of the private land price ceiling system from July 29.

Last month, 'Godeok Artes Misojium' in Sangil-dong, Gangdong-gu, Seoul recorded the highest first-priority competition rate in Seoul's history at 537.1 to 1. This broke the previous highest competition rate of 340.3 to 1 recorded two months ago at 'DMC SK View I-Park Foret' in Susaek-dong, Eunpyeong-gu in August. 'Seocho Xi Lerne' in Seocho-dong, Seocho-gu, which attracted attention as the first complex in Seoul to apply the price ceiling system after its reimplementation, also showed a high competition rate of 300.2 to 1 for 67 households.

During the same period, the average competition rate for subscriptions in the metropolitan area excluding Seoul (Gyeonggi and Incheon) rose about threefold to 31.4 to 1 compared to last year's 10.4 to 1. In particular, about 570,000 applicants applied for first-priority and special supply for three complexes simultaneously supplied in Galhyeon-dong, Gwacheon-si, Gyeonggi Province (Gwacheon Prugio Ortus, Gwacheon Prugio Eoullim Lavieno, Gwacheon Lescento Desiang). The sale of Gam-il Prugio Markber in Hanam-si, Gyeonggi Province also recorded 140,000 applicants for first-priority and special supply. The average competition rates were hundreds to one, such as Gwacheon Prugio Ortus at 534.9 to 1, Gwacheon Lescento Desiang at 470.3 to 1, Gwacheon Prugio Eoullim Lavieno at 415.7 to 1, and Gam-il Prugio Markber at 404.7 to 1. These complexes are private housing supplied in large-scale land development districts, and as the price ceiling system applies, they are evaluated to have secured location, price, and brand competitiveness, attracting a large number of applicants.

This trend is also confirmed by the number of subscription savings account holders. As of the end of September, the number of domestic subscription savings account holders (including comprehensive housing subscription savings, subscription savings, subscription installment savings, and subscription deposits) reached 26,812,857, far exceeding half of the total population of 51,780,000.

The industry is concerned that if subscription competition rates soar, the prices of jeonse (long-term deposit rental) and mid-to-low priced houses may rise. If expectations for sales increase, jeonse prices may surge due to increased waiting demand from non-homeowners, and prospective applicants with low scores may give up subscriptions and switch to purchases, which could also drive up purchase prices. Kim Woong-sik, a researcher at Real Today, analyzed, "Supply is decreasing, but the government is greatly opening the subscription market by expanding special supply quantities for first-time buyers in their 20s and 30s and relaxing income requirements for newlyweds, so record competition rates are expected in the future."

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