Gwacheon Jisik Jeongbo Town Jade Xi Minimum Winning Payment Recognized Amount
49㎡A 17.4 million KRW · 59㎡A 26.46 million KRW
Monthly limit of 100,000 KRW recognized... More payments advantageous
Winning possible after payments over 16 years 6 months to 22 years
[Asia Economy Reporter Lee Chun-hee] 'Aged 45 and above.' Last year, as the subscription market overheated, the minimum winning score (cutoff) skyrocketed, effectively becoming the age criterion for winning private housing subscriptions. Not only private housing but also public housing subscriptions showed signs of overheating, leading to an analysis that public housing subscriptions have also become 'age-based' subscriptions.
According to the industry on the 12th, the minimum recognized payment amount for winning the general sale of 'Jade Xi' supplied in S9 Block of the Knowledge Information Town in Gwacheon-si, Gyeonggi Province, is known to be between 17.4 million and 26.46 million KRW depending on the unit size. The cutoff for the 49㎡A (exclusive area) supply in the local area (Gwacheon-si) was 17.4 million KRW, and the cutoff for 59㎡A for residents of other Gyeonggi areas, which recorded a competition rate of as high as 785 to 1, reached 26.46 million KRW.
This resembles the private housing subscription point system. The current point system has a maximum total of 84 points, with 32 points for the period of being homeless, 35 points for the number of dependents, and 17 points for the subscription savings account period. Since the period of being homeless and the subscription savings account period effectively increase points by age, it is structurally impossible for people in their 30s to receive high scores.
The recognized payment amount system for public housing is also effectively age-based. Only 100,000 KRW per month is recognized, so the more payments made, the higher the chance of winning. Under the current public housing system, if competition occurs within the first priority group, winners are decided in order of 'those who have been homeless household members for more than three years and have the highest total savings amount.'
To understand the recognized payment amount system, one must go back to 2009 when the Housing Subscription Comprehensive Savings was first introduced. Until then, the only subscription savings eligible for public housing subscription was the subscription savings that allowed only 100,000 KRW per month.
With the introduction of the Housing Subscription Comprehensive Savings in 2009, the types increased to two. At that time, the government allowed up to 500,000 KRW per month to be deposited and also allowed lump-sum deposits for the Housing Subscription Comprehensive Savings. However, considering fairness with the existing subscription savings, only 100,000 KRW per month was recognized for public housing subscriptions, marking the start of the recognized payment amount system.
Also, although there were no eligibility requirements for joining the Housing Subscription Comprehensive Savings, considering fairness with the existing subscription savings and installment savings, which allowed joining from age 20, subscription applications were only allowed from age 20. Payment recognition also starts from age 20. However, up to 24 months (2.4 million KRW) of previous payments were recognized. In effect, payment recognition starts from age 18.
▲ Perspective view of 'Jade Zai' at S9 Block, Knowledge Information Town, Gwacheon-si, Gyeonggi Province (Provided by GS Construction)
In the case of Jade Xi, the cutoff of 17.4 million KRW for the 49㎡A local area (Gwacheon-si) corresponds to a payment period of 14 years and 6 months. The cutoff of 26.46 million KRW for 59㎡A residents of other Gyeonggi areas corresponds to a payment period of as long as 22 years. Considering that the cutoff for the 84㎡A of 'Jayeon & Raemian e-Pyeonhansesang' supplied in the Wirye New Town Seongnam-si area in 2013 was around 12 million KRW across all areas, and 5 million KRW for the 75㎡B local area (Seongnam-si) supply, the public housing recognized payment cutoff has increased by about 2 to 3 times in just 7 years.
Industry insiders expect that the public housing cutoff for Magok District 9 Complex in Gangseo-gu, Seoul, scheduled for the 16th to 18th, will be even higher. Jeong Ji-young, a subscription expert and CEO of I'm Happy iOne, predicted, "Unlike Jade Xi, which had income and asset criteria and residency obligations, Magok 9 Complex has significantly reduced regulations, and since it is supplied within Seoul city, it is highly likely that a higher cutoff than Jade Xi will be formed."
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