Despite 'High Pre-sale Prices', Popularity Soars... 43,000 First Priority Applicants for 7th Private Preliminary Subscription

Apartment view around Seoul./Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Ryu Tae-min] Approximately 43,000 subscription accounts were submitted for the 7th pre-sale general supply first priority targeting private apartments. The supply was concentrated in Paju Unjeong New Town, where expectations are high due to successive transportation benefits, which is interpreted as having gained popularity among prospective subscription demand.

According to the Korea Real Estate Board's Subscription Home on the 22nd, the results of the 7th private pre-sale general supply first priority held the previous day showed that 43,317 applications were received for six mixed-use residential complexes (Blocks 1 to 6, recruiting 1,248 households) in Paju Unjeong New Town District 3, resulting in an average competition rate of 34.71 to 1. The highest competition rate was recorded in the 3rd block 88A type of the mixed-use residential site, where 2,820 applications were submitted for 13 households, resulting in a competition rate of 216.92 to 1.

The enthusiasm for the special supply held on the 20th was also intense. For a total of 870 households recruited across Blocks 1 to 6, 10,282 applications were submitted, showing a double-digit competition rate of 11.82 to 1. In the case of the 3rd block 59A type of the mixed-use residential site, 879 applications were received for 14 households, soaring to the highest competition rate of 62.79 to 1.

This pre-sale complex appears to have succeeded in attracting interest despite concerns over high sale prices. The estimated sale price for Blocks 1 to 6 is around 630 million to 710 million KRW based on 84㎡ (exclusive area). This is about 100 million to 200 million KRW higher than the sale price of approximately 510 million KRW for the 84㎡ unit of Paju Unjeong 3 Jeil Punggyeongchae in Block 46 supplied during the 6th private pre-sale in April. However, since the estimated sale price can change later, it is interpreted that subscription demand gathered with the expectation that the sale prices of complexes in similar locations will be adjusted to similar levels at the time of the main sale.

The influx of subscription demand seems to be influenced by various transportation benefits. Unjeong New Town will allow travel to Seoul Station in about 20 minutes using the Metropolitan Area Express Railway (GTX) Line A, which is scheduled to open in the future. GTX-A, which began construction at the end of 2018, is expected to open in 2025. Additionally, the extension plan of Subway Line 3 and the Daegok~Sosa Line extension project to Paju are expected to improve transportation convenience.

On the other hand, even within the same northern Gyeonggi region, fortunes appear to differ depending on the location. In the 6th private pre-sale in April, the general supply first priority for Yangju Hoecheon A12 Block (Laon Private) received 930 applications for 335 households, resulting in an average competition rate of only 2.78 to 1. Furthermore, the special supply at that time saw only 233 applications for 359 households, resulting in a competition rate of 0.65 to 1, with undersubscription occurring in all types, showing a contrasting situation to the popular Paju Unjeong 3 District.

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