'Hillstate Songdo The Sky' Winning Lowest Score 68 Points
Current Scoring System Maximum Scores: 64 Points for 3-Person Households, 69 Points for 4-Person Households
Incheon Market Overheating Similar to Gangnam Area
[Asia Economy Reporter Lee Chun-hee] The enthusiasm for apartment subscription in Incheon is heating up to a level comparable to popular areas in Seoul. With the cutoff score for winning through the point system reaching the 70s, it has become virtually impossible for three-person households to win, indicating an overheated market atmosphere. Although it had not received much attention due to being overshadowed by the southern metropolitan area, it is now analyzed that a balloon effect is concentrating as government regulations have bypassed the area.
According to the Korea Real Estate Agency's 'Subscription Home' on the 2nd, the lowest winning score for the 84㎡ (exclusive area) unit at 'Hillstate Songdo The Sky' in Yeonsu-gu, whose winners were announced the previous day, was between 68 and 71 points. The lowest winning score for the 84㎡ unit at 'Hillstate Bupyeong' in Bupyeong-gu, Incheon, whose winners were announced on the same day, also reached 64 points.
Under the current housing subscription point system, where 84 points is the highest score, the maximum score a four-person household can receive is 69 points. For a three-person household, the maximum is 64 points. The current point system combines the period of being without a home (32 points), subscription savings account subscription period (17 points), and number of dependents (35 points) to select winners in order of highest scores. Even if one achieves the maximum 49 points by being without a home for 15 years after subscribing to the savings account, the score for the number of dependents cannot be increased unless one supports parents or has more children.
Last year in Seoul's subscription market, complexes where it was impossible to win without achieving the highest score for each number of dependents appeared frequently. A representative example is 'Le El Shinbanpo Central' in Jamwon-dong, Seocho-gu, supplied in November last year. The lowest winning scores for all four unit types in this complex, which supplied 135 households, were 69 points.
This means that the overheating level in Incheon apartment subscriptions is reaching that of Seoul's Gangnam area. The epicenter of subscription overheating in Incheon is Songdo International City. The 'The Sharp Central Park Phase 3' 80㎡ unit, supplied in September last year, attracted 33,801 applicants for 33 units. The cutoff score for this unit type was the highest score of 74 points for a five-person household. 'The Sharp Prime View,' supplied in the same month, also recorded cutoff scores between 68 and 72 points.
▲ Perspective view of 'Hillstate Songdo The Sky' in Yeonsu-gu, Incheon (Provided by Hyundai Engineering & Construction)
Not only the subscription market but also the general sales market is hot. While the balloon effect occurred in the southern Gyeonggi area due to the December 16 real estate measures last year, after the February 20 measures targeting that area, a balloon effect is occurring centered on Incheon.
According to the Korea Real Estate Agency, apartment prices in Incheon rose by 2.44% last month, showing the second-highest increase after Sejong (5.15%). The cumulative increase this year has already reached 3.20%, approaching the cumulative apartment price increase rate of 3.27% from 2016 to 2019.
The rise is led by international cities such as Songdo, Cheongna, and Yeongjong. Last month, 'Hillstate Songdo The Sky,' along with foreign rental conversion units 'Verdium First' and 'Edufore Prugio,' all showed high competition rates ranging from 39 to 72 to 1. In this process, even in Geomdan New Town, once called a 'vacancy graveyard,' subscription closings have been successful, indicating that the subscription enthusiasm is spreading not only in international cities but throughout Incheon.
The Korea Real Estate Agency views this rise as a result of transportation network benefits such as the Metropolitan Area Express Train (GTX). However, industry analysis suggests that the quadrupling of the increase rate from 0.53% the previous month is difficult to explain without the balloon effect. An industry expert said, "Incheon, which had been excluded from previous house price increases, is gaining momentum in catching up due to the balloon effect combined with transportation network benefits like the GTX-B line," and predicted, "The upward trend will continue for the time being."
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