[Real Estate Finance] January-February Non-Sequential and Resupply Subscription 8 Times Last Year... Should We Try 'Jupjup' in March?

Despite the Trading Cliff, the Bull Market Closed Higher... Cash-Rich Investors Actively Invest in Prime Complexes

The so-called “jubjub,” referring to non-priority subscription and lottery-based supply, is like a niche market. Despite the cold spell in sales, the popularity of prime complexes remains strong, and experts advise consistently monitoring these opportunities to avoid missing out.

According to the Korea Real Estate Board’s Subscription Home, the number of non-priority and resupply subscription complexes this year reached 35 in January and 32 in February, totaling 67. This is more than eight times the 8 complexes recorded last year in January (3 complexes) and February (5 complexes). The market views the sharp decline in sales transactions due to tightened loan regulations and rising interest rate pressures, especially in the metropolitan area, as having influenced the subscription market as well.

However, cash-rich buyers with sufficient funds or those expecting definite profits are actively using non-priority subscriptions to scoop up prime complexes. For example, on the 14th and 15th, the “Doraem Village 13 Complex Joongheung S-Class Green County” in Dodam-dong, Sejong City?known as a “lottery” apartment because it was priced eight years ago and offers over 300 million KRW in potential price gains upon winning the subscription?attracted 90,000 applicants for 70 units. This complex was built in 2014 as a public rental housing project, and after fulfilling the mandatory rental period, existing tenants were given priority to purchase, with the remaining 70 units resupplied this time. These units are known to be those where tenants either gave up their purchase rights or were disqualified.

Additionally, Songdo Xi The Star, which moved to non-priority subscription after winners from the general subscription canceled contracts, sold all 84 remaining units this month. Previously, in November last year, Songdo Xi The Star attracted 20,156 applicants for 1,533 units in the general subscription, closing with an average competition ratio of about 13 to 1. However, about 35% of the winners, approximately 530 units, canceled their contracts during the official contract phase. Although additional contracts were conducted with standby winners, 84 units remained unsold. On the 3rd of this month, applications for the remaining units were accepted, recording an average competition ratio of 9 to 1, and from the 15th, official contracts began, with all procedures completed by the 17th.

The remaining non-priority subscription complexes this month include three locations: one unit at Geomdan New Town Prugio The Venue in Wondang-dong, Seo-gu, Incheon, which will accept applications on the 28th; three units at Namcheon Sewonsu in Namcheon-dong, Suyeong-gu, Busan; and four units at Dongdaegu Station Centum Hwaseong Park Dream in Sinam-dong, Dong-gu, Daegu. Winners for all three locations will be announced on the 4th of next month.

In March, supply is scheduled in the metropolitan area including four locations in Seoul, three in Gyeonggi, and two in Incheon. In Seoul, Shinyoung Construction will launch “Shinyoung Jiwell Estate Gaebong Station” in Guro-gu with a first-priority subscription for local residents on the 2nd of next month. “Cantavil Suyu Palace,” which supplies 216 units post-construction by redeveloping the Gangbuk Comprehensive Market in Suyu-dong, Gangbuk-gu, canceled its resident recruitment announcement last month and reissued it with an average price reduced by 12 million KRW. “Seodaemun Yeongcheon Bando Yubora” is also noteworthy. Although a small complex with 199 units total and 108 for general sale, it is located opposite Kyunghee Palace Xi in Seodaemun and boasts excellent access to central Seoul as a station-area apartment.

In Gyeonggi and Incheon, many large complexes with over 1,000 units are expected to be supplied. Notably, two complexes with over 2,000 units will be launched in Gyeonggi Province. “Anyang Station Prugio The Sharp” in Manan-gu, Anyang-si, Gyeonggi, is a large complex nearing 3,000 units, supplied through the Jinhung Apartment housing reconstruction project. It consists of 21 buildings ranging from two basement levels to a maximum of 37 floors, with a total of 2,736 units sized between 41 and 99 square meters, of which 687 units will be offered for general sale. Another notable project is “Indeokwon Xi SK View,” built by redeveloping Naeson-dong’s Naeson 2 District in Uiwang-si, Gyeonggi. Developed by GS Construction and SK Ecoplant, this complex will be launched in March and consists of 20 buildings ranging from two basement levels to a maximum of 29 floors, totaling 2,633 units, with 898 units available for general sale.

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