With a Sale Price of 100 Million Won and a Market Profit of 400 Million Won... Sejong City's 'Jupjup' at 594 to 1

Aerial View of 'Doraem Village 13 Complex Joheung S-Class Green County' in Sejong City

Although the apartment subscription market atmosphere has somewhat cooled down, the enthusiasm continues as tens of thousands of people still flock to certain non-priority subscriptions where multi-billion won price gains are expected.

According to Korea Real Estate Board's Subscription Home on the 15th, the special supply application for ‘Doraem Village 13 Complex Joongheung S-Class Green County’ in Sejong City, held the previous day, attracted 16,868 applications for 50 units, recording an average competition rate of 337.26 to 1. Among them, the newlywed special supply saw the highest competition rate of 594 to 1, with 8,321 applications for 14 units. This is a sale-conversion rental apartment completed in 2014, with a total of 965 units, of which 70 units were offered as non-priority after excluding 895 units for priority sale. The units are all 59㎡ in size, and the sale price is 143.33 million KRW, about 300 to 400 million KRW cheaper than the surrounding market price. Applications for the remaining 20 units will be accepted on the 15th.

Non-priority subscriptions select winners by lottery rather than by point system, and since significant price gains are often expected, they attract high interest from non-homeowners. On the 21st, the non-priority subscription for ‘Hanam Hills Park Prugio,’ known as the ‘5 billion won lotto,’ is scheduled. This complex was completed in September 2018, and one unit became available as a non-priority due to contract cancellation. Eligibility requires non-homeowners residing in Hanam City. The sale price (exclusive area 98㎡) is about 544 million KRW, allowing an expected price gain of around 500 million KRW compared to the surrounding market price.

However, the subscription frenzy at the level of ‘hundreds of thousands to one’ seen in the past has clearly disappeared. Since March last year, eligibility requirements for non-priority subscriptions include residence in the relevant area and non-homeownership. In some areas like Gwacheon, disguised moves-in to target non-priority subscription price gains were rampant. Difficulties in funding due to strengthened loan regulations also affected the decline in competition rates. The competition rate for ‘Songdo Xi The Star’ in Songdo-dong, Yeonsu-gu, Incheon, which received non-priority subscriptions after 35% of the total supply remained uncontracted, was only 9 to 1.

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