Despite Numerous Uncontracted Units in Songdo... Over 20,000 Apply for Subscription to 'The Sharp Songdo Ark Bay'

The Sharp Songdo Ark Bay Bird's-eye View (Photo by Asia Economy DB)

[Asia Economy Reporter Ryu Tae-min] A new housing complex in Songdo, where a mass contract cancellation incident occurred at the end of last year, has attracted more than 20,000 subscription applicants. It is interpreted that prospective applicants flocked due to relatively low sale prices, enabling interim payment loans.

According to the Korea Real Estate Agency's subscription website on the 9th, on the 5th, 'The Sharp Songdo Ark Bay' in Songdo-dong, Yeonsu-gu, Incheon, attracted 22,848 applicants for 486 first-priority subscription units, resulting in all types being fully subscribed. The average competition rate was 47 to 1.

The highest competition rate was for the 98㎡ exclusive area, with 15,622 applicants for 74 units, recording an average competition rate of 211.1 to 1. The largest area, 179㎡ exclusive, had 116 applicants for 3 units, with an average competition rate of 38.67 to 1. The popular 84㎡A and 84㎡B units also showed average competition rates of 55.42 to 1 and 43.36 to 1, respectively.

This contrasts with the new housing complex in Songdo last December, where many contracts were canceled despite receiving subscription applications. 'Songdo Xi The Star,' launched in December last year, recorded an average competition rate of 13 to 1 in the first-priority subscription, but about 530 units, equivalent to one-third of the winners, canceled their contracts. Despite the rule that winners who cancel contracts cannot apply for subscriptions for 10 years, many contracts were canceled.

The difference is attributed to the financial burden. In regulated areas, if the sale price exceeds 900 million KRW, interim payment loans become difficult. In fact, for Songdo Xi The Star, most units except some lower floors had sale prices exceeding 900 million KRW, making interim payment loans impossible. Moreover, the required down payment was over 150 million KRW, equivalent to 20% of the sale price, increasing the burden.

On the other hand, The Sharp Songdo Ark Bay lowered the down payment to 10% of the sale price and set the highest sale prices for the 84㎡ and 98㎡ units at 800 million KRW and 899.9 million KRW, respectively, keeping them below 900 million KRW to minimize the financial burden.

Meanwhile, following the mass contract cancellation incident at the end of last year, some complexes scheduled for sale in Songdo are reportedly planning to lower the down payment to 10% and adjust sale prices to reduce the initial financial burden.

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