Sale prices lower than Jeonse... All eyes on one Pangyo Jupjup unit

[Asia Economy Reporter Kim Hyemin] As the housing price surge comes to a halt, the subscription market is clearly sorting out the wheat from the chaff, and 'lotto jumjum' units, which are expected to yield several hundred million won in capital gains, have appeared for the first time in a while, attracting the attention of subscription waiters.

According to the Korea Land and Housing Corporation (LH) Subscription Center on the 13th, 'Pangyo Valley Foret Xi,' developed in the Godeung district of Seongnam, Gyeonggi Province, is conducting a non-priority subscription on this day. One remaining unit, whose contract was canceled after the initial supply, has been offered as a 'jumjum' unit this time. This complex began move-in as early as September 2021 and recorded a highest competition rate of 43 to 1 during the main subscription in 2020.

The most notable point is that the initial sale price from two years ago was applied as is in this non-priority subscription. It was priced at 443.73 million KRW for a 59㎡ exclusive area. In October last year, the same area was leased for 650 million KRW. This means the sale price is 200 million KRW cheaper than the lease price. Nearby, an 84㎡ unit in 'Hoban Summit Pangyo Valley' was traded for 1.26 billion KRW last month. Considering the lease price and the sale price of nearby complexes, the actual sale price is expected to be between 800 million and 1 billion KRW. Simply winning the subscription could yield a capital gain of over 500 million KRW. Since it takes about 20 minutes to reach Gangnam and Songpa, accessibility to Seoul is not bad, which is why subscription waiters are highly interested.

Although the real estate market is shrinking and the subscription market is seeing an increase in unsold units, complexes with good locations or expected capital gains are still recording high competition rates. According to Subscription Home, the complex with the highest competition rate among non-priority subscription complexes in the metropolitan area in the first half of this year was Geomdan Kumho Eoulim Central in Wondang-dong, Seo-gu, Incheon. This complex, which conducted a non-priority subscription in May, attracted 12,030 applicants for one unit, marking a record-breaking success. The reason for the high competition rate is that the sale price was significantly lower than the market price. An 84㎡ unit was priced at 390 million KRW, while the same area’s sale right was traded for 783 million KRW in February.

Other top-ranking non-priority subscription complexes such as ▲Dasan New Town Jayeon & Prugio (9763 to 1) ▲Hanam Hills Park Prugio 3rd Complex (9486 to 1) ▲Geomdan New Town Prugio The Venue (8157 to 1) ▲Pyeongchon Urban First (3301 to 1) ▲Gwacheon Weaver Field (2133 to 1) also attracted high interest from subscription waiters due to their sale prices being lower than market prices.

However, experts advise carefully checking the subscription winning criteria and restrictions. For example, for Pangyo Valley Foret Xi, subscription eligibility is limited to adults aged 19 or older residing in Seongnam and members of a household without a home. If two or more people from one household apply, all applications are invalid. Spouses in separate households are considered the same household. Winners must pay the full sale price within 60 days and move in within 90 days. As a public sale complex in the metropolitan area, there are residency obligations and resale restrictions. According to housing laws, resale is prohibited for eight years from the date of selection as the first occupant. Subscription winning for other sale houses is restricted for ten years from the winning date. Additionally, the winner must reside for five years, and violation of this may result in cancellation of the housing supply contract.

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