"Il-dan Jupjup" Is Old News... Non-Sequential Subscription, Sold Out Then Uncontracted → Subscription Shortfall

Real estate stock photo / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Hyemin] As the real estate market experiences a cold spell, the subscription market is also freezing up, intensifying the selection process even in non-priority subscription applications. Previously, units would sell out first and then 'N-th round pick-ups' would repeat as contracts were canceled, but recently, more people are not even entering non-priority subscriptions.

According to the Korea Real Estate Board's Subscription Home on the 5th, among the eight unit types at Cantavil Suyu Palace in Gangbuk-gu, Seoul, two types were undersubscribed in the recent non-priority subscription. The 18㎡C type had only one applicant for two units, and the 56㎡A type had no applicants for one unit. This contrasts with the late July non-priority subscription, which recorded competition rates ranging from a minimum of 1.44:1 to a maximum of 4:1.

In the case of Hanwha Forena Mia in Gangbuk-gu, a large-scale undersubscription occurred in the non-priority subscription. In mid-last month, only 25 applicants applied for 70 units. These were national standard-sized units ranging from 80 to 84㎡, but less than half of the total units were filled. This complex conducted a total of four non-priority subscriptions since May, and although many units remained uncontracted, the non-priority subscriptions themselves were sold out.

One year ago, non-priority subscriptions were strongly characterized by a 'pick-up and pick-up again' attitude, as they were called 'Jupjup.' This was due to the lottery system rather than a point system, the fact that household members other than the head of the household could apply, and that subscription savings accounts were not used, attracting high interest from young people in their 20s and 30s who had low competitiveness in the main subscription.

Even as the subscription market became more selective, the attitude of 'just apply first' remained strong in non-priority subscriptions. This is why 'N-th round non-priority subscriptions' repeated, with high competition rates at the time of subscription followed by a flood of uncontracted units. However, recently, non-priority subscriptions have also shown different patterns, with undersubscription occurring from the start.

This is largely due to the overall real estate market downturn, which has dampened the popularity of non-priority subscriptions. The selection process based on location and sale price is intensifying even in non-priority subscriptions. For example, in the case of Forena Mia, which experienced large-scale undersubscription, the sale price for the 84㎡ unit is set at around 1.1 billion KRW, which is even more expensive than the recent actual transaction prices of 900 million to 1 billion KRW for the nearby flagship apartment, Raemian Tribera.

There is also analysis that the appeals from construction companies asking applicants to carefully check the eligibility criteria before applying have had an impact. In fact, as cases of applicants winning without checking qualifications and then canceling contracts have frequently occurred, construction companies have recently emphasized in red letters at the top of recruitment announcements to request careful subscription applications. Forena Mia also specified eligibility requirements such as 'Must inquire via representative phone before subscription, 10-year re-winning restriction, only applicable to Seoul residents/non-homeowners' in the housing name after repeated N-th round non-priority subscriptions. This indicates an increasing awareness that careless applications in non-priority subscriptions can lead to disadvantages such as re-winning restrictions.

Ye Kyung-hee, senior researcher at Real Estate R114, said, "Due to the impact of interest rate hikes and other factors, the real estate market is shrinking, and interest in the non-priority subscription market is also decreasing. The selection process by complex, examining whether the location is good or if there is a high expectation of profit, will become increasingly severe."

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