Will 'N-cha Jupjup' Disappear in Seoul... Concerns Over Lack of Transparency vs. Blocking Fake Demand

With the Deregulation of Restricted Areas, the Mandatory Use of 'Cheongyak Home' Also Ends

[Asia Economy Reporter Kim Hyemin] The so-called 'N-round jumjum'?where a single complex in Seoul repeatedly holds multiple rounds of non-priority subscription?is expected to disappear. This is because all areas except Gangnam, Seocho, Songpa, and Yongsan districts have been removed from regulated zones, leading to a relaxation of non-priority subscription regulations. Market reactions are mixed, with concerns that limited information exposure could create a blind market, while some expect it will help curb speculative demand.

According to the Korea Real Estate Agency's Subscription Home on the 12th, there are differences between regulated and non-regulated areas in the non-priority subscription system. The biggest difference lies in the subscription application method. Regulated areas are required to accept non-priority subscriptions through the Subscription Home system. In contrast, non-regulated areas have the option to use Subscription Home; they can either use it or have the project owner announce and accept applications independently as needed.

Seoul, which had been classified as a regulated area, has so far conducted non-priority subscriptions through Subscription Home, managed by the Korea Real Estate Agency under the Ministry of Land, Infrastructure and Transport. From non-priority subscription information to application and results, everything was transparently disclosed through a unified channel. However, except for the four autonomous districts where regulations remain, non-priority subscriptions can now proceed without going through Subscription Home. For example, Jangwi Xi Radiant in Seongbuk-gu, which held non-priority subscriptions on the 10th and 11th, accepted applications through the complex’s sales website.

With the lifting of regulations, it is highly likely that project owners will conduct non-priority subscriptions independently. While the Subscription Home system, a kind of public method, can serve as a promotional channel during subscription booms, it is seen as a shackle during downturns. A construction industry official said, "The procedures are more complicated and results are disclosed compared to conducting it independently. Given the current atmosphere, not many places will want to use Subscription Home."

From the perspective of subscription waiters, there are criticisms that inconvenience has increased compared to the past when non-priority subscription information could be checked at a glance. Unlike the Subscription Home method, which allowed subscription schedules to be known 2-3 days in advance, if the project owner conducts it independently, announcements and applications can be made on the same day. This means that unless one leaves contact information at the complex’s sales office in advance or frequently visits the website, they may miss information. There is also no obligation for the project owner to disclose subscription results such as competition rates. This could lead to a blind market where unsold units are deliberately omitted or converted to discretionary sales to mislead consumers.

On the other hand, some expect that this deregulation could be an opportunity to eliminate speculative demand characterized by a 'just apply and see' approach. In non-priority subscriptions, if the competition rate exceeds 1:1, non-priority subscriptions must continue regardless of contract results. However, since last year, cases of winners giving up have increased, making 'N-round jumjum' a problem. An industry insider said, "If a stigma of conducting multiple non-priority subscriptions is attached, it becomes harder to clear unsold units. They even pleaded to refrain from subscriptions. With the lifting of non-priority subscription regulations, the market will be reorganized around real demand."

Yeokyunghee, Senior Researcher at Real Estate R114, said, "There are pros and cons to deregulation. It could eliminate speculative demand but also exacerbate information asymmetry and cause market confusion. We need to closely monitor how the market will develop."

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