Separation of Wheat from Chaff in the 수도권 'Jupjup' Subscription Market

5 Out of 6 Unranked Subscription Complexes Undersubscribed
Complex Size and Location Are Key Factors
Higher Sale Prices Than Market Value Also a Cause

Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Seoyul] Among six apartment complexes in the Seoul metropolitan area that recently held non-priority subscription applications, five experienced undersubscription once again. Amid ongoing loan regulations, demanders are beginning to carefully distinguish the value of complexes based on their size and location.

According to the Korea Real Estate Board's subscription homepage on the 6th, five out of six complexes in the metropolitan area that recently conducted non-priority subscriptions failed to meet demand. At Incheon Songdo Central Park Riverrich, five units of the 84㎡ C and G types remained unsubscribed even in the 7th non-priority subscription round. In Bucheon City, Gyeonggi Province, Wonjong I-One City recruited 106 units but a staggering 75 units remained unsubscribed. Additionally, Songdo Lux Ocean SK View (3 units), Seogwanggyo Parkview in Suwon City, Gyeonggi Province (3 units), and Uijeongbu Station World Meridian Smart City in Uijeongbu City, Gyeonggi Province (4 units) also failed to fill subscription numbers during their non-priority subscription rounds.

The market views the undersubscription in non-priority subscriptions, often called 'jupjup,' as a result of demanders' careful selection process. The five complexes that received undersubscription results in non-priority subscriptions are all small-scale complexes. Bucheon Wonjong I-One City (106 units) barely exceeds 100 units, while Seogwanggyo Parkview (57 units), Uijeongbu Station World Meridian Smart City (15 units), Songdo Central Riverrich (21 units), and Songdo Lux Ocean SK View (16 units) fall far short of 100 units. According to statistics from Real Estate R114, the undersubscription rate for apartment complexes with fewer than 100 units sold this year reached 26.7%. This is six times higher than the 4.2% undersubscription rate for complexes exceeding 1,000 units.

There are also criticisms regarding the location environment. For example, Seogwanggyo Parkview is located a 41-minute walk or a 20-minute bus ride from the nearest station, Gwanggyo Station. On a real estate community site, a post was made expressing concerns, saying, "From the perspective of transportation and infrastructure, it's really not suitable, but as a non-homeowner, I'm wondering whether I should apply for the unsubscribed units."

The sale price, which is not cheaper than the market price, is also cited as one of the reasons for undersubscription. For Bucheon Wonjong I-One City, the sale price of the 74.51㎡ D type (5th floor) is set at 593 million KRW, which is 143 million KRW higher than the nearby Haeyum Apartment (71㎡) priced at 450 million KRW. This makes it difficult to enjoy the advantage of subscriptions, which is the possibility of purchasing apartments below market price and earning profits. Despite its small size (106 units), the Seoul Yeongdeungpo 'Centreville Asterium,' sold under the price ceiling system at a price lower than the market, completed subscription applications during the official contract phase. Park Jimin, head of the Monthly Subscription Research Institute, said, "Relative sale price is important for subscription results," adding, "Even if the location is poor and the complex is small, if the sale price is low, subscription results can be good."

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