[Practical Finance] Gangnam Area Pre-Sale... Low Score Favors Lottery for Units Under 60㎡ Small-Sized Apartments

60% of Allotted Units by Lottery... Advantage for Young Generation
Higher Point System Ratio for Units Over 85㎡
Greater Chance of Winning for High-Scoring Applicants in Medium to Large Units

Experts advise that applicants with low scores should aim for small units under 60㎡ when challenging for pre-sale in the Gangnam area. Since April, the government has introduced a lottery system in the three Gangnam districts designated as regulated areas, changing the previous 100% score-based system for units under 60㎡ to 40% score-based and 60% lottery. This is because the subscription market, where points accumulate differently depending on marriage status and number of children, inevitably disadvantages the younger generation. On the other hand, units between 60 and 85㎡ have a higher proportion of 70% score-based allocation, which may be disadvantageous for applicants with low scores.

[Image source=Yonhap News]

Applicants with high scores have a better chance of winning medium to large-sized housing. For units over 85㎡, which previously had a 50% score-based and 50% lottery system, the score-based ratio has increased to 80%, while the lottery ratio has decreased to 20%.

In March, the special supply criteria capped at a pre-sale price of 900 million KRW in speculative overheated districts were abolished. Families with multiple children, households supporting elderly parents, newlyweds, and first-time homebuyers can now aim for nationwide special supply units priced above 900 million KRW.

Kim Byung-gi, team leader at RealToday, said, "After checking the subscription schedule of the interested complex, applicants should carefully review capital, income requirements, and scores to confirm eligibility for special supply in advance. Special supply applicants have two chances because if they fail in the special supply, they are automatically entered into the general supply subscription."

With the lifting of the pre-sale price ceiling system, if you hesitate due to financial issues in the face of higher prices aligned with market rates, you should focus on complexes where the price ceiling system still applies. The introduction of a lottery system in public pre-sale with the price ceiling system has broadened the chances of winning for genuine buyers.

General supply uses sequential and lottery systems. The sequential system selects applicants based on the total savings in their subscription savings account. Since a maximum of 100,000 KRW per month is recognized, those who have saved for a long time have an advantage. In popular areas, total savings often exceed 20 million KRW. The winning threshold was roughly between 12 million and 15 million KRW.

However, at the end of last year, the government announced that 20% of the general supply in public pre-sale would be allocated by lottery without considering the total savings amount, giving applicants with lower savings a chance to win.

The government plans to supply pre-sale units of public housing (New Home) with prices 20-30% lower than market prices on prime sites in the metropolitan area by the end of this year. Scheduled units are 1,981 in June, 3,274 in September, and 4,821 in December. Pre-sale is supplied at about 70% of surrounding market prices with no resale restrictions, but a 5-year mandatory residence period applies. However, subscription qualifications are strict depending on the selection criteria, including residence period in the area and housing ownership history, so applicants should carefully review these before applying.

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