Even in the Same Area... 'Sorting the Wheat from the Chaff' Begins in Earnest Depending on Location and Brand

Busan Raemian Forestige Sold Out at First Priority
Outskirts like Saha and Gangseo See Unsold Units or 1:1 Competition Rate

Same Trend in Daegu, Pohang, and Iksan
"Impact of Real Estate Slump... Polarization in Subscription Market Will Become Clearer"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] The phenomenon of "separating the wheat from the chaff" is becoming clear in the housing subscription market, which had been overheated. Just as there is a polarization in competition rates between the metropolitan area and non-metropolitan areas, there is also a divergence within the same region depending on location, scale, and brand. With the increase in supply and signs of falling house prices, the atmosphere of "Seondang Hugom (winning first and worrying later)" seems to be weakening.

According to Korea Real Estate Board's Subscription Home on the 17th, Raemian Forestige in Dongnae-gu, considered the largest redevelopment project in Busan, recorded an average competition rate of 59.98 to 1 and was sold out in the first priority subscription. A total of 65,110 people applied for 1,104 general sale units, marking the highest number of applicants in Busan in the past five years.

On the other hand, small-scale complexes in the same Busan area such as Saha, Gangseo, and Geumjeong-gu showed contrasting results, with some units remaining unsold or barely meeting supply. Fortuna near Guseo Station in Geumjeong-gu had some units under-subscribed in the first priority subscription, and Samjeong Green Core The City in Saha-gu barely filled residents with a 1:1 competition rate for 64㎡ and 76㎡ (exclusive area) units.

In Daegu, where oversupply and a surge in move-in volumes overlap, fortunes vary depending on location and sale price. While most complexes are experiencing under-subscription, The Central Hwaseong Park Dream, supplied in December last year, succeeded in selling out in the first priority subscription with an average competition rate of 14 to 1. Although administratively in Dong-gu, it is located on the border with Suseong-gu, known for its excellent school district, allowing access to Daegu's top academy district and commercial area, which is believed to have motivated subscription applicants. The sale price was also set lower per 3.3㎡ compared to nearby apartments.

In non-metropolitan cities such as Pohang and Iksan, competition rates vary depending on location and brand. In Pohang, Pohang Xi Eastern, which held its first priority subscription on the 11th, closed with an average competition rate of 29.76 to 1. In contrast, Donghwa Aiwi in Pohang Pentacity, located relatively on the outskirts, saw all types except penthouses under-subscribed in the first priority.

Similarly, in Iksan, Iksan Xi Grand Park, supplied in the old downtown area in December last year, recorded an average competition rate of 46 to 1, whereas Iksan The Banpore, supplied in the outskirts in Chunpo-myeon, experienced under-subscription with only 22 applicants combined for first and second priority for 209 units of 59㎡.

Yeokyunghee, Senior Researcher at Real Estate R114, said, "As the existing real estate market's upward trend slows and expectations for further rises diminish, the subscription market is also being affected. In areas with abundant supply, polarization will become more pronounced depending on factors that drive price increases such as location, brand value, and large-scale complexes."

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