30% of Citizens Are Priority 1 in Housing Subscription Accounts... "Both Profit and Potential Are Like a Lotto"

Archive photo / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Yuri] The number of first-priority subscription account holders nationwide is approaching 15 million. This means that about 30% of the entire population holds a first-priority subscription account. This is why it is regarded as a 'lottery' not only in terms of capital gains but also in terms of winning chances.

According to the Korea Real Estate Board's Subscription Home as of the end of last month, there were 27,102,693 subscription account holders nationwide (including Housing Subscription Comprehensive Savings, Subscription Savings, Subscription Installment Savings, and Subscription Deposits). Among them, 14,948,433 held first-priority qualifications, accounting for about 55.15% of all subscribers.

The number of subscription account holders exceeds half of South Korea's population of approximately 52 million. Since surpassing 26 million in April, it has increased by more than 1 million in seven months. The number of first-priority subscribers also surged. From 14,615,893 at the beginning of the year to 14,948,433 in November, it increased by more than 330,000 in less than a year. For national housing sold in speculative overheated zones and overheated subscription areas, first-priority qualification is granted if the subscriber has been enrolled for over two years and has made more than 24 payments. For private housing, subscribers must have been enrolled for over two years and paid the regional deposit amount.

This is due to increased interest from prospective buyers in subscriptions as it has become difficult to enter the existing market amid soaring housing prices. Expectations that one can purchase a home at a price much lower than the market price, thanks to the Housing and Urban Guarantee Corporation (HUG)'s price control and the private land price ceiling system implemented in major areas since July, have also fueled interest in the 'lottery subscription' market.

As a result, the subscription competition rate for exclusive areas of 84㎡ in this year's sales market more than doubled compared to last year. According to Real Today, the subscription rate for 84㎡ nationwide has steadily increased over the past three years. It was 14.5 to 1 in 2018, 15.1 to 1 last year, and this year, 2,175,607 applicants competed for 66,469 units, recording a competition rate of 32.7 to 1, more than double last year's rate.

In Seoul, the first-priority subscription competition rate for apartments larger than 85㎡ reached 199.6 to 1 as of the 10th of this year (according to Real Estate 114), about 5.2 times last year's 38.4 to 1. Triple-digit competition rates were also recorded in Gyeonggi (116.2 to 1) and Sejong (153 to 1). Even first-priority subscription savings holders in Seoul and other speculative overheated zones find it difficult to apply for units under 85㎡, where winners are selected 100% by points, if their points are low.

The market expects that interest from genuine demanders in subscriptions will continue as pre-subscriptions for the 3rd New Town begin amid concerns over reduced supply next year. A maintenance industry official said, "Demand for new apartments is expected to increase next year, but supply is likely to decrease, so subscription competition rates will remain high."

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