The Reason Why Kim Amugae, a 30s Resident of Seoul, Went to Daegu for 'Jupjup'

If You Win, Capital Gains of 100 Million Won
Investors Targeting Non-Regulated Areas Increase After 12·16 Measures
Competition Rate for Anyang Artejai Soars to 4000:1

[Asia Economy Reporter Onyu Lim] Kim, a man in his 30s living in Seocho-gu, Seoul, took the SRT from Suseo to Dongdaegu at 5:30 a.m. on the 17th. He participated in the so-called "Jupjup," an unranked subscription lottery starting at 9 a.m. that day. The apartment subject to Jupjup was "Hillstate Daegu Station." Having taken a day off and headed to the model house, Kim said, "It seems like more than 1,000 people lined up," adding, "I know the chances of winning are low, but as a person in his 30s living in Seoul, the probability of winning under the point system is lower, so I came with hope."

According to the real estate industry on the 19th, since the announcement of the December 16 real estate measures last year, there has been a strong investment trend in areas that escaped regulations. The unranked subscription market, which Kim participated in, is a representative example. The unranked subscription system randomly selects winners for apartments that have no owners due to disqualified applicants or contract cancellations. It is popular because adults over 19 without subscription savings accounts and multi-homeowners can also apply.

The enthusiasm was especially strong for Hillstate Daegu Station. The reason why outsiders from various regions, including Seoul, gathered here by KTX and SRT is due to the apartment’s location. Hillstate Daegu Station is located in Jung-gu, Daegu, which is outside the scope of regulations. Compared to Suseong-gu, designated as a speculative overheating district in Daegu, the resale restriction period for pre-sale rights is short at six months, and it is free from loan regulations. In other words, if you win the pre-sale rights here, you can resell quickly and earn capital gains.

For example, the pre-sale price of an 84㎡ unit at Hillstate Daegu Station is around 470 million to 500 million KRW, while the market price of the nearby Daegu Station Central Xi is 580 million KRW. Winning means you can gain a capital gain of 100 million KRW.

A real estate industry official said, "Including Daegu, there is a strong investment fever in areas not regulated after the December 16 real estate measures," adding, "The competition rate for unranked subscriptions has reached 4000 to 1 in some cases." In fact, the recent unranked competition rate for Anyang Artezi reached 4191 to 1. A total of 33,524 people applied for 8 units. The 76㎡A type had 8,498 applications for 1 unit, soaring to a competition rate of 8498 to 1. The 76㎡B type had 14,796 applications for 2 units, showing a competition rate of 7398 to 1. Anyang-si Manan-gu, where Anyang Artezi is located, is also a non-regulated area, allowing resale after six months. It is free from capital gains tax surcharges, loan regulations, and resale restrictions.