"Sale Prices Surpass Market Rates"...More Young People Canceling Subscription Savings Accounts

Among 24 Newly Launched Complexes, 19 Priced Above Market Rates This Year
Rising Construction Costs and Stricter Lending Rules Diminish Subscription Appeal

This year, a significant number of newly supplied apartments across the country were released at prices higher than the prevailing market rates in their respective areas.

According to real estate platform Zigbang on March 15, out of 24 newly launched private apartment complexes nationwide this year, the average sale price per 3.3 square meters in 19 of them exceeded the market price of apartments that were occupied in the same region within the past two years. Among these, 14 complexes (58.3%) were supplied at prices more than 20% higher than neighboring market rates.

In Seodaemun-gu, Seoul, the "Define Yeonhui" apartment complex was priced at 47.07 million won per 3.3 square meters, about 18% higher than the area's average sale price and approximately 27% above the average market price of recently occupied apartments. In Gangseo-gu, Seoul, the exclusive 84-square-meter unit at "Raemian Elravine" was set at a maximum of 1.848 billion won, surpassing the actual transaction prices of older apartments in the vicinity.

The primary factor behind the increase in sale prices is the rise in construction costs. The costs of land, raw materials, labor, and financing have all increased simultaneously, leading to a substantial surge in construction expenses. According to the Housing & Urban Guarantee Corporation (HUG), as of January 2026, the average sale price per 3.3 square meters for private apartments in Seoul was 52.64 million won, up 19.5% from 44.05 million won a year earlier. In the case of reconstruction and redevelopment projects, another factor is the tendency to set higher sale prices for general buyers in order to reduce the financial burden on association members.

An apartment-dense area in Seoul. Photo is not directly related to the article content. Photo by Yonhap News.

As sale prices surpass market rates, the atmosphere in the subscription market has cooled. Analysts note that as the potential for capital gains diminishes and loan regulations are tightened, more young people are canceling their subscription savings accounts.

In order to curb the rise in sale prices, the government is operating a presale price ceiling system and a high-price management system through the Housing & Urban Guarantee Corporation. However, ongoing controversy surrounds the effectiveness of these measures, as the ceiling system applies only to limited regions and is criticized for failing to adequately reflect increases in construction costs. In addition, stricter lending requirements, such as the total debt service ratio (DSR) regulations, have further raised the barriers to homeownership through subscriptions.

The number of subscription savings account holders is also on a downward trend. According to the Korea Real Estate Board, the total number of subscription savings account holders decreased by approximately 840,000, from 26,979,374 in January 2024 to 26,132,752 in January 2026. In particular, the number of mid-stage subscribers with account periods of three to five years dropped by more than 1.5 million during the same period—from 4,644,268 to 3,140,495—while the number of long-term subscribers with over 10 years of membership increased. This indicates a pronounced withdrawal among the younger generation, who tend to have lower subscription scores.

Experts believe that the upward trend in sale prices is likely to continue for the foreseeable future. Accordingly, they point out the need for a comprehensive policy response, including expanding supply, alleviating construction cost burdens, and adjusting financial regulations.

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