Q1 Subscription Competition Rate Declines... "Impact of Resale Restrictions and Strengthened Residency Obligations"

Even with Fewer General Sale Units, Both Subscription Competition Rate and Subscription Shortfall Rate Decrease

[Asia Economy Reporter Onyu Lim] An analysis has shown that the apartment subscription market stabilized in the first quarter (January to March) of this year.

On the 12th, Zigbang analyzed the subscription statistics from the Korea Real Estate Board's Subscription Home and found that in the first quarter of last year, the number of general sale households nationwide was 47,390, with a first-priority subscription competition rate of 20.0 to 1.

Compared to the fourth quarter of last year (October to December), when the number of general sale households was 81,569 and the first-priority subscription competition rate was 34.0 to 1, the number of sale households decreased, but the competition rate also lowered.

In the first quarter of this year, the subscription competition rate by region was 21.3 to 1 in the metropolitan area and 18.5 to 1 in provincial areas.

Compared to the fourth quarter of last year, the provincial rate slightly increased by 0.6 percentage points, while the metropolitan area rate significantly dropped by 40.5 percentage points.

Also, the average minimum score for the metropolitan area in the first quarter was 47.8 points, the lowest since the fourth quarter of 2019 (51.7 points).

On the other hand, the provincial area score rose by 1.8 points to 46.8 points compared to the previous quarter, narrowing the gap with the metropolitan area.

Ham Young-jin, head of Zigbang Big Data Lab, said, "The subscription market in the first quarter of this year showed stability compared to last year as the number of sale units decreased and the first-priority subscription competition rate declined," adding, "This is presumed to be due to policies focused on actual demand, such as restrictions on resale and mandatory residence periods, which reduced demand aiming for short-term resale profits."

From complexes applying for resident recruitment approval after February 19 this year, a mandatory residence period of up to five years has been imposed on houses subject to the metropolitan area price ceiling system.

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