Gyeongsan 'Jungsan Zai' First Priority Competition Rate 103 to 1... Non-Regulated Area Balloon Effect

Complex 2 averages 116.2 to 1
96㎡ units in Complex 2 at 218.4 to 1
Adjacent to Daegu Suseong-gu, a regulated area

Perspective view of Jungsan Xi, Gyeongsan, Gyeongbuk.

[Asia Economy Reporter Donghyun Choi] The balloon effect from non-regulated areas in the local sales market has spread to the subscription market.

According to Korea Real Estate Agency's Subscription Home on the 9th, the first-priority subscription results for 'Jungsan Xi' in Jungsan-dong, Gyeongsan-si, Gyeongbuk, conducted the previous day, showed that a total of 90,310 applicants competed for 872 units, recording an average competition rate of 103.56 to 1. The apartment, supplied in two complexes, saw Complex 1 with 601 units receive 58,830 applications, resulting in an average competition rate of 97.9 to 1, while Complex 2 with 271 units received 31,480 applications, reaching a competition rate of 116.2 to 1. Even considering that the announcement dates for the winners of the two complexes were different, allowing for duplicate applications, the competition rate exceeded expectations, according to industry evaluations.

In particular, for Complex 2's 96㎡ (exclusive area) units, of which 41 were supplied, 8,956 applicants from the local area applied, pushing the competition rate up to 218.4 to 1. Complex 1's 117㎡ units also showed triple-digit competition rates with 5,087 applicants for 50 units.

The industry views the balloon effect caused by the government's designation of regulated areas as the background for the high subscription competition rates. Jungsan-dong, where the complex is located, borders Suseong-gu, Daegu, which was designated as a regulated area on the 19th of last month. Despite being adjacent to a regulated area, there was no resale restriction period, and anyone aged 19 or older who had been subscribed to a subscription savings account for more than six months could apply for first-priority subscription regardless of whether they were the head of household, household member, or homeowner, which attracted many applicants. The sale price was also evaluated as relatively affordable. The average sale price per 3.3㎡ of Jungsan Xi was about 15.99 million KRW, which is about 60% of the 26.6 million KRW per 3.3㎡ sale price of apartments in their first to fifth year of occupancy in the Suseong-gu area of Daegu.

However, experts point out that even in non-regulated areas with fewer subscription qualification restrictions, indiscriminate subscription should be avoided. In fact, on the same day, the first-priority subscription for 'Damun District Bando Yubora Ivy Park' supplied in Yangpyeong-gun, Gyeonggi Province, a non-regulated area in the metropolitan area, resulted in undersubscription. In the case of Yangpyeong-gun, except for 'Yangpyeong Hyumeon Ville Central City' supplied in July this year, no apartment supplied since 2008 has been fully subscribed in the first-priority subscription.

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