Subscription Concentration in Seoul... 3.6 Times Increase in First-Choice Subscription Applicants

This year, apartment subscription applicants are flocking to Seoul. As the real estate sales market rebounds, centered around the Gangnam area of Seoul, demand is concentrating on the ‘smart one home’ in the subscription market as well.

[Image source=Yonhap News]

On the 15th, Real House analyzed private apartment subscriptions on the Subscription Home platform and found that from the beginning of this year through July, 398,995 first-priority subscription applications were received across 130 nationwide complexes. This is about one-fifth of the same period in 2020 and represents a 54.6% decrease compared to last year's 878,752 applications.

On the other hand, the concentration of subscriptions in Seoul was prominent. First-priority subscription applications for 15 complexes launched in Seoul through July this year totaled 131,208, which is 3.6 times higher than the same period last year. The average first-priority subscription competition rate also more than doubled from last year, reaching 73.5 to 1.

Following Seoul, Chungbuk recorded a high competition rate. Six complexes launched in Cheongju attracted 56,596 first-priority subscription applications, raising the overall competition rate in Chungbuk to 21.1 to 1. Gwangju recorded an average first-priority subscription competition rate of 7.8 to 1, benefiting from an increase in supply.

The Gyeonggi subscription market is also experiencing a favorable trend. The ‘Godeok Hoban Summit Phase 3’ launched last month received 13,996 applications for 170 units, and ‘Gwangmyeong Central Xi’ attracted 4,629 applicants. However, unlike Seoul, there was significant variation between complexes, resulting in an average first-priority competition rate of only 6.6 to 1.

Average First-Choice Competition Rate by Region as of July.
[Image provided by Real House]

In other regions, the number of first-priority applicants decreased, leading to a drop in average competition rates. In particular, Gyeongbuk had only one applicant over seven months, and Daegu and Jeonnam had just three applicants, highlighting the deepening polarization between Seoul and other provinces.

Kim Seon-ah, team leader at Real House, said, “With the removal of restrictions on interim payment loans and the rapid rise in sale prices, demand is concentrating on Seoul area sales despite controversies over high prices,” adding, “The ‘smart one home’ phenomenon, where buyers seek only popular properties, is intensifying in the subscription market as well.”

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