'Seoul Area Lotto' Deok-eun and Wirye, First Priority Subscription Battle Predicted

Goyang Deok-eun DMC River City Xi
Hanam Wirye Umirin 2nd Phase Sale Price
Around 20 Million KRW per 3.3㎡, Similar

Winner Announcement Dates Differ: June 4 and 3
Multiple Applications Allowed, Competition Expected to Be Fierce

[Asia Economy Reporter Choi Dong-hyun] On the 26th, 'DMC River City Xi' in Deok-eun District, Goyang-si, Gyeonggi Province, which is practically located in the Seoul metropolitan area, and 'Woomirin 2nd Phase' in Bukwirye, Hanam-si, will open for first-priority subscription. The two complexes, adjacent to the northwestern and southeastern city boundaries of Seoul respectively, have similar sale prices and different announcement dates for winners, making it possible to apply for both, which is expected to attract high demand. Previously, both complexes recorded competition rates of several tens to one in the special supply subscription held the day before, which can gauge the success of the sale.

According to the Korea Real Estate Agency's subscription homepage on the 26th, DMC River City Xi recorded an average competition rate of 20.9 to 1 with 3,772 applicants for 180 special supply units the previous day. In particular, 3,004 applicants applied for the 80 units allocated for newlyweds, showing a high competition rate of 37.5 to 1. This is a better result compared to the Xi complexes sold earlier this month in the same Deok-eun District. For example, on the 4th, DMC River Fore Xi's special supply had 502 applicants for 132 units, a 3.8 to 1 competition rate, and DMC River Park Xi had 810 applicants for 257 units, a 3.2 to 1 competition rate.

The relatively high number of applicants for DMC River City Xi is attributed to its lower sale price compared to existing complexes. The sale price per 3.3㎡ of this complex is 20.1 million KRW, which is about 5 to 6 million KRW lower than DMC River Park Xi (25.83 million KRW) and DMC River Fore Xi (26.3 million KRW). For an 84㎡ (exclusive area) Type A unit, the highest price in DMC River City Xi is 669.3 million KRW, whereas DMC River Fore Xi's highest price is 892.2 million KRW, a difference of over 200 million KRW. The reason for this price difference within the same area is that GS Construction, which is developing DMC River City on Block A6 as its own project, purchased the land relatively cheaply in advance, while White Korea, the project operator for Blocks A4 and A7 where other complexes are located, bought the land at a higher price through competitive bidding. The high sale price controversy surrounding DMC River Fore Xi is reflected in the low winning subscription scores of 16 and 17 points for 84㎡E and 84㎡D units respectively. The lowest winning score for DMC River Park Xi was also low at 24 points.

Due to these factors, the subscription popularity of DMC River City Xi is expected to rise even further.

For Woomirin 2nd Phase's special supply, 751 applicants applied for 51 units, recording a competition rate of 14.7 to 1. Considering that there was no allocation for newlyweds, this is not a low competition rate. The special supply competition rate for 'Wirye Jungheung S-Class,' sold in February, was 16.8 to 1.

The sale price per 3.3㎡ of Woomirin 2nd Phase is 19.98 million KRW, and since all units are priced below 900 million KRW, mid-term loans are available. Considering that the nearby Hakam-dong apartment market price is about 31.1 million KRW per 3.3㎡, it is approximately 30% cheaper and is called a so-called 'lottery complex.' However, since it is supplied at less than 80% of the surrounding market price in a speculative overheating district, a 10-year resale restriction applies. For DMC River City Xi, the resale restriction period lasts until the ownership transfer registration.

The industry expects demand to concentrate on Woomirin 2nd Phase in Bukwirye, considering transportation conditions and name recognition. Currently, there is no subway station around Deok-eun District, and Woomirin 2nd Phase is located at the innermost part of Bukwirye, so public transportation facilities are poor at present. However, in the future, transportation networks are expected to improve significantly with the introduction of the Wirye Sinsa Line, Wirye Tram, and Wirye-Gwacheon Line. A representative from Wirye New Town A Real Estate said, "Since the government recently announced metropolitan transportation improvement measures such as the extension of the Wirye-Gwacheon Line, the future value of the Wirye area is being re-evaluated," adding, "As accessibility to Gangnam and quasi-Gangnam areas improves, housing prices will also be affected."

The announcement dates for winners are June 3 for Woomirin 2nd Phase and June 4 for DMC River City Xi. If the announcement dates differ, multiple subscriptions are possible, but if one wins in Woomirin 2nd Phase first, the winning in DMC River City Xi will be invalidated.