Subscription Market Restructured Mainly for Actual Demand... Average Competition Rate Drops to 19:1

Real Estate 114 Survey... Average Cutoff Score for Points Increased

[Asia Economy Reporter Kim Hyemin] As the housing subscription system has been reorganized to focus on genuine homebuyers without housing due to strengthened resale restrictions and mandatory residence periods, the competition rate for apartment subscriptions has decreased this year.

On the 9th, Real Estate 114 surveyed the subscription competition rates for privately supplied apartments that received applications from January to May this year, and the average was recorded at 19 to 1. The competition rate for the same period last year was 27 to 1.

In the metropolitan area, the competition rate dropped from 36 to 1 to 33 to 1, and in the provinces, it fell significantly from 19 to 1 to 12 to 1. Real Estate 114 analyzed, "Along with the strengthening of subscription regulations, the inclusion of pre-sale rights in the housing count when calculating taxes has substantially blocked speculative demand aiming for short-term profits in the subscription market."

However, as homebuyers without housing actively participated in subscriptions, the average cutoff score for winning points actually increased. The average cutoff score during the same period was 32 points, higher than 24 points in 2019 and 31 points in 2020. Real Estate 114 viewed this as "an effect of genuine homebuyers with high points actively joining subscriptions as apartment wins are recognized as a good way to secure a home."

By region, Seoul had the highest average at 60 points, followed by Sejong at 59 points, Daejeon at 50 points, Incheon at 47 points, Jeju at 39 points, and Ulsan at 39 points. In Seoul, Sejong, and Daejeon, the supply volume was not large at the beginning of the year, and the significant rise in existing apartment prices led to a pronounced demand concentration in the subscription market. On the other hand, in Gangwon and Jeonnam, where apartment supply was abundant recently, some subscription units were undersubscribed, resulting in lower cutoff scores for winning points.

As the sales market is reorganized to focus on genuine demand, the polarization of demand based on location, sale price, and brand is expected to intensify going forward. Yeokyunghee, Senior Researcher at Real Estate 114, said, "In areas like Seoul and Sejong where the sale price is cheaper than existing apartment prices, a score in the high 60s is needed to be in the stable winning zone," adding, "If your score is below the 50s, aiming for less popular subscription types could be a way to increase your chances of winning."

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