Picking Up Listings... Incheon, Unranked Subscription Fever

Before the Implementation of Pre-sale Transfer Restrictions
Real Demand and Speculative Investment Targeted
Previously Heavily Unsold Complexes Now Bustling

[Asia Economy Reporter Choi Dong-hyun] The so-called "jubjub" non-priority subscription fever is heating up in Incheon. This appears to be due to demand not only from actual buyers but also from those seeking capital gains ahead of the resale restriction on pre-sale rights following the designation of regulated areas.

According to the Korea Real Estate Board's subscription homepage on the 4th, the non-priority subscription for the 'Yeongjong International City Dongwon Royal Duke A31 Block' apartments in Jungsan-dong, Jung-gu, Incheon, held the previous day, recorded an average competition rate of 2.42 to 1 with 865 applicants for 357 units. In particular, 126 applicants competed for a single 84㎡ (exclusive area) A-type unit. Considering that this apartment complex experienced a large-scale undersubscription during the first-priority subscription in July, when only 121 applied for 396 units, this non-priority subscription result is unusual.

On the same day, the non-priority subscription for 'Unseo 2nd SK View Sky City A7 Block' in Unnam-dong, Jung-gu, also recorded an average competition rate of 5.14 to 1 with 1,879 applicants for 365 units. This complex was also undersubscribed during the first-priority subscription.

In the Incheon area, a large number of applicants flocked to non-priority subscriptions last month as well. The non-priority subscription for 38 units of 'Hillstate Lake Songdo 3rd' in Songdo-dong, Yeonsu-gu, attracted 18,017 applicants, recording an average competition rate of 474 to 1. In Michuhol-gu, Jooan-dong, 'Jooan Park Xi The Platinum' saw 9,783 applicants for 278 units.

The large influx of applicants to complexes that experienced significant undersubscription during the ranked subscription in Incheon is interpreted as a psychological attempt to catch the last train before regulations. During the June 17 measures, Yeonsu, Namdong, and Seo-gu in Incheon were designated as speculative overheated districts, while Jung-gu, Dong-gu, Michuhol-gu, Bupyeong-gu, and Gyeyang-gu were designated as adjusted target areas, banning the resale of pre-sale rights throughout the region. However, the complexes that received non-priority subscriptions this time had applied for resident recruitment announcements before the designation of regulated areas, so they are free from pre-sale right regulations.

In Incheon, a non-priority subscription for some uncontracted units of 'Jooan Park Xi The Platinum' will be held on the 7th. This complex is virtually the last to avoid resale restriction regulations. After six months from winning, resale is freely possible.

Non-priority subscriptions can be applied for by anyone aged 19 or older regardless of residence or subscription account status. Last month, a total of 50,080 applicants flocked to 873 units across nine complexes that received non-priority subscriptions in the metropolitan area. An industry insider said, "In fact, since you only need to pay the initial deposit to resell, many applicants gathered," adding, "However, some metropolitan areas are already seeing undersubscribed complexes emerging one after another, so indiscriminate investment should be avoided."