140,000 People Gather for 400 Million Won Units, 1 Billion Won Units Undersubscribed... 'Subscription Has Become More Cautious'

Dongtan Lake Park Records Highest Number of Apartment Applications This Year
‘High Price Controversy’ Gwangmyeong and Suwon Complexes Fail to Close First Priority
High Interest Rates and Rising Prices Deepen ‘Sorting Out’ Fatigue

In the metropolitan area subscription market, the success or failure of sales is becoming clearly divided depending on the sale price and location. This week, more than 140,000 people flocked to the Dongtan sale complex, recording the highest number of subscription applications this year, but some complexes in Gwangmyeong and Suwon failed to meet the first-priority subscription closing criteria. As the perception that the high interest rate situation will be prolonged and fatigue over rising sale prices accumulate, the 'sorting out the wheat from the chaff' phenomenon in the subscription market is expected to continue for some time.

[Image source=Yonhap News]

Recently, the performance of sale complexes has greatly diverged depending on the sale price and location. 'Dongtan Lake Park Jayeon & e-Pyeonhansesang' in Dongtan 2 New City, Hwaseong, Gyeonggi Province, which held first-priority subscriptions on the 24th, received applications from 133,042 people for 554 households, recording an average competition rate of 240.1 to 1. Including the special supply recruitment held on the 23rd, a total of 143,014 people applied for subscriptions. This is the highest number of apartment complex subscription applications supplied nationwide this year.

The background of the subscription success appears to be influenced by the relatively affordable sale price set under the price ceiling system. The highest sale price for an exclusive area of 84㎡ is 481.2 million KRW, which is under 500 million KRW. Considering that the nearby 'The Lake Booyoung 5 Complex' with an exclusive area of 84㎡ was recently traded at 795 million KRW, a price difference of over 300 million KRW can be expected. Dongtan 2 New City, where the apartment will be built, is adjacent to the Yongin Semiconductor Cluster, and the location is evaluated as good.

On the other hand, in Gwangmyeong, Gyeonggi Province, a complex failed to close the first-priority subscription. 'Trius Gwangmyeong,' which accepted first-priority subscriptions on the 17th, attracted 2,444 applicants for 517 households, recording an average competition rate of 4.72 to 1, but 5 out of 8 types failed to close the first-priority subscription. It is mainly attributed to the relatively poor location within Gwangmyeong and the high sale price. The highest sale price for an exclusive area of 84㎡ in Trius Gwangmyeong was set at 1.186 billion KRW, which is more than 100 million KRW higher compared to the previously sold nearby 'Gwangmyeong Xi Forena' with an exclusive area of 84㎡ priced at 1.045 billion KRW.

On the same day, 'Hillstate Suwon Park Foret' in Suwon, Gyeonggi Province, which held first-priority subscriptions, also failed to close the first-priority subscription for all three housing types, with 218 applicants for 431 households. The sale price for an exclusive area of 84㎡ in this apartment is 899 million KRW (highest price). Including balcony expansion fees and various option costs, the sale price exceeds 900 million KRW. It is evaluated that the high sale price compared to nearby apartment complexes was a hindrance.

Experts analyze that the atmosphere of scrutinizing the 'appropriate sale price' is spreading in the subscription market as the high interest rate trend and fatigue over rising sale prices combine. Kyunghee Yeo, chief researcher at Real Estate R114, said, “At the beginning of the year, the government's deregulation lowered the subscription threshold and the perception that 'the sale price is the cheapest now' heated up subscription enthusiasm, but recently, as loan interest rates and sale prices have risen sharply, the tendency to carefully examine location and price, the 'sorting out the wheat from the chaff,' seems to have strengthened.”

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