[Practical Finance] Non-Qualified Subscription 'Jupjup'... February Is the Last Chance

Attention to Inventory Before March Qualification Regulation Tightening
Need for Advance Preparation Including Careful Monitoring of Sale Schedules

As apartment prices continue to rise, making the dream of owning a home increasingly distant, real demand buyers and investors are eyeing the no-priority subscription, known as ‘Jupjup,’ as a last chance throughout February.

Basically, apartments select winners by considering factors such as subscription account membership period, non-homeownership period, and number of dependents, unless special conditions like newlyweds, multiple children, or first-time buyers are met. However, if unsold units occur within the priority ranks or if disqualified winners emerge, the remaining units open up for subscription regardless of subscription account membership. This is called no-priority subscription.

The key point of no-priority subscription is that, unlike general sales, anyone aged 19 or older can apply without a subscription account. There is also no re-winning restriction that bans subscription for a certain period after winning. However, since no-priority subscription opportunities do not arise for all apartment sales, it is necessary to carefully check the sales schedule of interested complexes and be prepared to apply as soon as the subscription announcement is made.

The ‘Jupjup’ craze has recently spread across various parts of the metropolitan area, creating a rare phenomenon where even some unsold complexes record high competition rates in no-priority subscriptions. For example, City Construction’s ‘City Pradium 4th’ in Namyang New Town, Hwaseong-si, Gyeonggi-do, which held a no-priority subscription on the 27th of last month, received 2,731 applications for 44 units, resulting in an average competition rate of 62 to 1. This complex had experienced undersubscription up to the second priority during its December sale last year. Notably, the 84㎡ B-type, with 19 units offered, saw a competition rate of 100 to 1 in the no-priority subscription that day.

Earlier, Ssangyong Construction’s ‘Ssangyong The Platinum Premier’ in Gongdo-eup, Anseong-si, which held a no-priority subscription on the 25th of last month, also attracted 3,606 applicants for 636 units. The penthouse 129㎡ P-type drew an astonishing 147 applicants for just one unit. This complex had four out of six housing types undersubscribed during the first and second priority subscriptions in early December last year.

On the 3rd, the last no-priority subscription before the tightening of regulations will effectively take place, targeting 27 units at Seungyun Noblian in Wonjong-dong, Bucheon-si. The 66㎡ type, which recorded a competition rate of 30 to 1 during the general supply, is expected to attract many applications for its two units.

It is also important to consider that the threshold for no-priority subscriptions will rise after March. The government recently amended housing supply regulations to allow only non-homeowners residing in the relevant area to apply for no-priority subscriptions starting in March. Violations of no-priority subscription eligibility will result in a 10-year re-winning ban in speculative overheated districts and a 7-year ban in regulated areas.

However, there are voices urging caution against ‘blind Jupjup’ applications. Many cases involve applicants recklessly applying without considering their own situation and conditions, riding the wave of ‘panic buying.’ An industry insider advised, “With tightened loan regulations, even if you win, you must confirm in advance whether you can pay the large remaining balance. At the same time, you should carefully examine the sale price along with the local market prices and outlook.”

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