Metropolitan Area Large and Medium Apartment Subscription Competition Rate 145 to 1... 'Lottery System' Effect?

[Asia Economy Reporter Lee Chun-hee] Competition rates for mid-to-large sized apartment types in the Seoul metropolitan area subscription have been intensifying day by day. This trend is analyzed as a result of the fact that low-score applicants or homeowners in regulated areas can aim to win subscriptions, and the demand for spacious indoor areas is also increasing.

According to Real Estate Info, a real estate market analysis firm, the average competition rate for mid-to-large sized apartment types exceeding 85㎡ (exclusive area) in the Seoul metropolitan area until last month was 144.9 to 1 this year. This is a sharp rise compared to 6.8 to 1 in 2018 and 21.5 to 1 last year. In contrast, the competition rate for small-to-medium sized types under 85㎡ was 13.2 to 1 in 2018, 16.9 to 1 in 2019, and 28.1 to 1 this year, showing a widening gap.

Currently, for private housing in speculative overheated districts, 100% of small-to-medium sized units under 85㎡ and 50% of mid-to-large sized units over 85㎡ are selected through a point-based system. In adjusted target areas, 75% of small-to-medium and 30% of mid-to-large units are allocated via the point system. For those with low points or homeowners who are not eligible for the point system, mid-to-large types are seen as the only chance to win through a lottery system, leading to a surge in subscription applications.

Research Team Leader Kwon Il of Real Estate Info said, "The price per 3.3㎡ for types over 85㎡ is often more reasonable than for small-to-medium types, and the preference for a single well-chosen property due to regulations has attracted people to mid-to-large subscriptions." He added, "Especially with COVID-19, homes are increasingly used for remote work and children's education, emphasizing the importance of internal space, so demand for types with ample area is expected to grow."

Perspective view of 'Hillstate Reeshuville Gangil' in Gangdong-gu, Seoul (Provided by Hyundai Engineering & Construction)

The industry expects that demand will focus on subscription complexes including mid-to-large sized types in the Seoul metropolitan area within this year.

Hyundai Engineering & Construction, together with Gyeryong Construction, will offer 'Hillstate Lishuvil Gangil' at Block 5 of the Godeok Gangil Public Housing District in Gangdong-gu, Seoul, at the end of this month. The complex consists of 7 buildings from 2 basement floors to 27 above-ground floors, totaling 809 units. Among them, 247 units are mid-to-large sized at 101㎡. It is close to the Han River, Godeok Waterfront Ecological Park, and Mangwolcheon Stream. Gangbit Elementary and Middle School is scheduled to open in the first half of next year within walking distance, and Gangil Elementary, Gangdong Middle, and Gangil High Schools are nearby. It is also close to highly preferred schools by parents such as Hanyoung Foreign Language High School and Paejae High School.

In Incheon, GS Engineering & Construction plans to offer 'Songdo Crystal Ocean Xi (tentative name)' next month in the A10 block area of Songdo-dong, Yeonsu-gu. This large complex consists of 1,503 units ranging from 84 to 205㎡. The large central plaza (tentative name) within the complex will connect to the Landmark City Waterfront Park (planned), the largest coastal promenade in Songdo, enhancing the comfort of the complex.

Perspective view of 'Uijeongbu Gosan Sujain DSTIGE' in Uijeongbu-si, Gyeonggi Province (Provided by Hanyang)

In Gyeonggi Province, 'Uijeongbu Gosan Sujain DST (2407 units)' will be offered this month at C1, 3, and 4 blocks in the Gosan District of Uijeongbu City. It consists of various types including 69㎡, 79㎡, 84㎡, 101㎡, and 125㎡. Hanyang and Boseong Industry are responsible for construction, and the complex will apply the 'Sujain Smart Home 1.0' system, which features fine dust blocking and reduction systems creating a clean living environment from the entrance to inside the units, as well as non-face-to-face solutions to prevent COVID-19 infection.

'Osan Lotte Castle Sky Park,' scheduled for sale this month in Wondong, Osan City, also includes mid-to-large sized units. It consists of 2,339 units ranging from 65 to 173㎡ and is the first Lotte Castle brand apartment supplied in Osan City. Ssangyong Construction will also launch 'Ssangyong The Platinum Premier' in Gongdo-eup, Anseong City within the same month. It consists of 1,696 units ranging from 59 to 141㎡ and is close to Starfield Anseong, SRT Jije Station, and the Samsung Semiconductor Plant in Pyeongtaek Godeok.

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