100,000 Participants Gathered for 'Private Pre-Subscription'... Success Overcoming Concerns

Second Private Pre-Subscription First Priority 56 to 1
Large Units in Pyeongtaek and Geomdan See Triple-Digit Competition Rates
Thanks to Prices Significantly Lower Than Market Value
Seoul Housing Price Increase Outlook Also Seems to Have an Impact

On the 28th, prospective applicants are receiving consultations at the pre-application site for the 3rd New Town located in Jangji-dong, Songpa-gu, Seoul. Photo by Jin-Hyung Kang aymsdream@

Private pre-sale subscriptions continue their successful run, recording triple-digit competition rates in some unit sizes. Although the supplied units are relatively far from Seoul and have stricter regulations compared to public pre-sale subscriptions?leading to concerns that the policy's effectiveness might be reduced?they are gaining unexpected popularity. Factors cited include significantly lower sale prices compared to market prices and expectations of rising housing prices in Seoul.

According to the Korea Real Estate Board's subscription website on the 12th, in the 2nd round of private pre-sale general supply first-priority subscriptions held the previous day, a total of 89,483 applicants competed for 1,598 units, resulting in an average competition rate of 56 to 1. Considering that 22,714 people applied for the special supply held on the 10th, more than 100,000 people have flocked to private pre-sale subscriptions in just two days.

The Jeil Punggyeongchae in Incheon Geomdan AB20-1 Block and Dietre in Pyeongtaek Godeok A-46 Block were particularly popular, with competition rates of 81.88 to 1 and 76.97 to 1, respectively. Geomdan and Godeok are second-phase new towns where land acquisition has been completed, reducing concerns about delayed occupancy, and they have many development prospects, which analysts say has driven strong demand. Especially in Godeok, steady buying interest continues due to the expansion of Samsung Semiconductor's Pyeongtaek campus and the KTX direct connection project.

A distinctive feature of private pre-sale subscriptions is the inclusion of many large unit sizes, whose demand has grown further during the COVID-19 era. For example, the Pyeongtaek Godeok Dietre 111㎡A (exclusive area) recorded a competition rate of 136.84 to 1, Incheon Geomdan Jeil Punggyeongchae 115㎡A had 104.61 to 1, and Pyeongtaek Godeok Dietre 111㎡C reached 102.98 to 1, with competition rates soaring into triple digits.

There were significant concerns that private pre-sale subscriptions would have limited effectiveness initially due to location constraints. Compared to public pre-sale subscriptions, which include many units close to Seoul, private ones are less favorably located, and winners cannot apply for other subscriptions. During the first private pre-sale special supply in December last year, there were many units in Osan Segyo 2 and Busan Jangan that failed to meet recruitment targets.

However, as rounds continue, the variety of units increases and word of mouth spreads, competition rates are gradually rising. An industry insider explained, "Public pre-sale subscriptions consist of 80% units under 60㎡, which are small, whereas private ones have many medium to large units. Especially for units over 85㎡, even one-homeowners can apply if they dispose of their existing home, which seems to attract many applicants."

Although the rate of housing price increases in Seoul and the metropolitan area has recently slowed, leading to a more stable trend, expectations that prices will continue to rise appear to be fueling interest in pre-sale subscriptions. In fact, according to a survey conducted by 'Budongsan Study,' the largest real estate community in Korea, among 5,863 members, 29.8% of respondents predicted that Seoul apartment prices would rise by more than 5% this year.

Private pre-sale subscriptions are expected to continue their popularity for the time being. From the first quarter, the Ministry of Land, Infrastructure and Transport will begin supplying a total of 34,000 units in prime metropolitan locations such as Seongnam Bokjeong, Uiwang Wolam, and Siheung Hajung. Notably, 4,000 units from Seoul’s urban public housing complex projects, including Jeungsan 4 District, will also be included in the pre-sale supply for the first time this year.

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