The Curtain Rises on 3rd Phase New Town Pre-Subscription... How to Increase Your Winning Chances?

Priority Should Be Given to Residents with Low Average Subscription Scores
Target Unpopular Housing Types Like Tower-Style and Niche Layouts to Increase Winning Chances
Number of Children Decides Outcome... Aim for Newlywed Special Supply if You Have Two or More
If Your Score Is Below 10 in the Point System, Life-First Lottery Is More Advantageous
If Income Qualifies for Priority Supply or Marriage Duration Is Short, Special Supply Is Beneficial
Newlywed Hope Town with 70% General Quota Should Be Chosen If Income Is High

[Asia Economy Reporter Ryu Tae-min] On the 16th, the pre-subscription schedule for 30,200 public sale apartments in the 3rd phase new towns in the metropolitan area and major housing sites is intensifying the strategic moves of homebuyers aiming to increase their winning chances. As a large supply volume is expected, many applicants are anticipated to apply, and some supply types have overlapping eligibility, deepening the concerns of prospective applicants. Here, we introduce niche strategies to increase the chances of winning the pre-subscription.

Priority Quota for Residents... A ‘Beneficial Factor’ to Increase Winning Chances

If you reside in the area where the pre-subscription supply is available, your chances of winning increase. The 3rd phase new towns where pre-subscription starts this year?Hanam Gyosan, Goyang Changneung, Namyangju Wangsuk, Bucheon Daejang, and Incheon Gyeyang?are all large-scale housing development districts with an area of over 660,000㎡. Anyone residing in Seoul, Incheon, or Gyeonggi Province can apply. Especially, if you currently live in the respective area, you can be allocated the priority quota for residents.

For supply areas in Gyeonggi Province, 30% of the total supply is preferentially allocated to those who have lived in the area for more than one year. The remaining 20% is supplied to residents of other areas in Gyeonggi Province, and the last 50% is supplied to other metropolitan area residents. In Seoul and Incheon, 50% of the total supply is first preferentially supplied to residents of the respective area in the first stage, and then the remaining 50% is supplied to first-stage unsuccessful applicants and metropolitan area residents outside the respective area. Jeong Ji-young, CEO of iOne, said, "The priority quota for residents has an average score about 10 points lower than other subscription types, making the chances of winning much higher," adding, "In terms of subscription savings period, it’s like gaining about three years."

To Increase Winning Chances, Aim for Less Popular Tower-Type and Niche Floor Plans

Apartment complexes show different popularity depending on the floor plan. The 'tower-type' floor plan is less popular because it is difficult to orient southward and ventilation between the kitchen and living room is poor. Also, even with the same area, the interior of the tower-type looks smaller compared to the 'plate-type' floor plan. Although it varies by complex, generally, houses with tower-type floor plans have lower subscription competition rates.

This can be seen in the ‘Hanwha Forena Suwon Jangan’ that was supplied in Suwon City, Gyeonggi Province, in February this year. The 64㎡B tower-type recorded a subscription competition rate of 11 to 1, which is lower than the 14 to 1 rate of the plate-type 64㎡A of the same area. The minimum winning score cutoff for the tower-type was 41 points, 7 points lower than the plate-type’s minimum of 48 points.

When Eligibility Overlaps in Supply Types... Which is More Advantageous, ‘Newlyweds vs First-Time Homebuyers’?

The newlywed and first-time homebuyer types are the most commonly overlapping eligibility categories among prospective applicants. Generally, applying under the newlywed category is more advantageous than the first-time homebuyer type, according to CEO Jeong Ji-young. Newlywed special supply is limited to those married within 7 years, resulting in less competition, whereas the first-time homebuyer type has no restrictions on age or marital status.

However, since the newlywed special supply is point-based, it is important to calculate your score in advance. Especially, the number of children is decisive for the score, so newlyweds with two or more children have a higher chance of winning. CEO Jeong explained, "The number of children, residence period in the area, and household income are evaluated for up to 13 points. If you score over 10 points, the newlywed special supply is advantageous," adding, "If your score is below 9 points, where the chance of winning is low, aiming for the first-time homebuyer special supply is also an option."

In fact, the number of children greatly affects winning chances. According to data from Rep. Kim Eun-hye’s office of the People Power Party, among newlyweds who won subscriptions from May 2018 to August 2020, only 9.9% had no children. Those with two children accounted for the largest share at 63%, followed by one child at 25%, and three children at 3%.

Newlyweds vs Multi-Child Families, First-Time Homebuyers vs Multi-Child Families?

In other special supply types, the 'number of children' is the most decisive factor in increasing winning chances. The multi-child category requires three or more minor children to apply, so it generally has lower competition than other special supply types. If you are eligible, it is advantageous to aim for the multi-child special supply.

The multi-child special supply scores up to 100 points based on the number of children, period of being without a home, and residence period in the area. Experts generally consider a score of 70 or above as having a high chance of winning. Notably, unlike other types, the multi-child category allows applicants to apply for supply housing in nearby areas even if they do not reside in the respective area.

Newlywed Special Supply vs Newlywed Hope Town... If Monthly Income is Below 6.03 Million KRW, ‘Special Supply’ is Advantageous

The ‘newlywed special supply’ and ‘Newlywed Hope Town (Sinhee Town)’ have the same basic income requirements. With the income requirements relaxed in February, both types allow support if the monthly average income is below 7.84 million KRW for single earners (8.44 million KRW for dual earners).

However, if the income is below 6.03 million KRW (7.23 million KRW for dual earners), it is better to aim for the newlywed special supply. This income requirement qualifies you for priority supply under the newlywed special supply, which allocates 70% of the total supply as priority.

Sinhee Town also has priority supply, but it accounts for only 30% of the total. Therefore, if your income exceeds 6.03 million KRW per month, aiming for Sinhee Town, which has a larger general supply volume, increases your chances of winning. The priority supply for Sinhee Town targets (prospective) newlyweds or single-parent families married within 2 years or with children under 2 years old. Priority recipients are selected based on point system criteria such as subscription payment frequency and residence period.

If Marriage Duration is Short, Aim for Special Supply; If No Children, Aim for Newlywed Hope Town

Similarly, newlyweds with a short marriage duration benefit from aiming for special supply, as marriage duration awards points in the newlywed special supply. Three years or less grants 3 points, 3 to 5 years grants 2 points, and 5 to 7 years grants 1 point. In contrast, Sinhee Town does not provide any additional points based on marriage duration.

On the other hand, newlyweds with no or few children are better off aiming for Sinhee Town’s priority supply. Without children, competitiveness in the newlywed special supply’s priority point competition is low. Conversely, Sinhee Town’s priority supply does not have a point criterion based on the number of children, so having no children does not affect the outcome.

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