Subscription Market, Cutoff Scores Soar and Without Cash Even That Becomes an 'Uncrossable Wall'

Average Winning Bonus Points in Seoul 67.17... Continuing Upward Trend
Popular Complexes Also Exceeding 70 Points on Average
Even If Selected, Loan and Residency Regulations Make Funding Difficult

[Asia Economy Reporter Kim Hyemin] The barrier to owning a home through apartment subscription in Seoul is becoming increasingly high. This is because the subscription score required for winning is continuously rising, making it difficult even for three-person households to succeed. Due to strengthened loan and actual residence requirements, even those who win find it hard to secure funds, leading to criticism that the subscription market is turning into a playground for the wealthy.

According to the Korea Real Estate Board's Subscription Home on the 20th, the average winning subscription score for apartments sold in Seoul this year was 67.17 points. This average was calculated by combining the scores for the local and other regions for houses under 85㎡ (exclusive area), which are scored by the point system. Considering that the average subscription score for Seoul apartments last year, compiled by Real Estate 114, was about 65 points, the average winning score has risen this year.

A score of 67 points cannot be achieved unless the head of a household aged 45 or older receives full marks for the period of no home ownership and subscription account subscription period, and has at least two dependents (children or parents). The minimum winning score cutoff was 66.46 points on average. This score is also out of reach for a three-person household in their 40s, who can earn a maximum of 64 points.

Especially in popular subscription complexes, scores exceeding 70 points are not uncommon. For example, in Godeok Gangil Jeil Punggyeongchae 84.1500㎡ in Gangdong-gu, adjacent to the Gangnam area, there was a winner with a top score of 82 points?just 2 points shy of the perfect 84 points. Recently, the average winning score for Dietre Prestige near Dongtan Station in Hwaseong-si, Gyeonggi Province, known as a "lottery subscription," soared into the 70s.

As the threshold for winning continues to rise, another problem is that even winners cannot secure the subscription payment without cash. This is because the government has strengthened actual residence and loan regulations, effectively favoring only the wealthy. Previously, winners who struggled to prepare the subscription price would immediately rent out the purchased home as a jeonse (long-term lease) to raise funds. However, since February 19, the government has changed the system for subscription price ceiling applied complexes announced after that date, requiring winners to reside directly for up to five years upon moving in.

Additionally, for apartments priced over 900 million KRW, group loans for interim payments are also restricted. Interim payments account for about 60% of the subscription price. Adding the 20% down payment means that about 80% of the subscription price must be held in cash. For a 1 billion KRW apartment, only those who have 800 million KRW in cash can attempt the subscription. This is why actual demanders end up giving up on winning or complain that the system "only favors the wealthy."

Industry insiders predict that popular complexes such as Raemian One Bailey in Banpo-dong, Seocho-gu, scheduled for sale next month, and Dunchon Jugong in Gangdong-gu, planned for sale within the year, will also be an "insurmountable wall" for most 30-40-year-old non-homeowners. Kyunghee Yeo, senior researcher at Real Estate 114, said, "Raemian One Bailey will attract wealthy individuals who have maintained non-homeownership while living in high-priced jeonse. The subscription price itself is high, and loans are difficult to obtain, making it a market hard for ordinary citizens to enter."

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