[Asia Economy Reporter Kim Yuri] More than 10,000 applicants have flocked to ultra-small complexes in Seoul, intensifying concerns about lottery-like subscription due to the price ceiling system becoming a reality. In a situation where existing housing prices have surged, applicants with low subscription scores are gravitating toward relatively less preferred small-scale solo apartments. However, experts advise that rather than reckless subscription, one should carefully consider the potential for long-term asset value appreciation and financial conditions.
According to the Korea Real Estate Agency's Subscription Home on the 21st, 'Godeok Artes Misojeum' in Sangil-dong, Gangdong-gu, Seoul, is conducting first-priority subscriptions. This complex is a reconstruction of the Byeoksan Villa, with a total of 100 households, of which 37 are for general sale. The sale price per 3.3㎡ is 25.69 million KRW, with the 59㎡ (exclusive area) priced up to about 683 million KRW, and the 84㎡ priced up to 866 million KRW. Although direct comparison with large complexes is not possible, the nearby Godeok-dong Godeok I-Park 84㎡ resale price is in the range of 1.5 to 1.6 billion KRW. In the special supply subscription held the previous day, a total of 5,053 applications were received for 11 units. For the 59㎡B type newlywed special supply recruiting 2 units, 1,588 applicants applied only from the relevant area, showing a competition rate of 794 to 1.
Earlier, more than 10,000 people also flocked to the subscription for the small-scale complex 'Seocho Xi Rene' in Seocho-gu, where the price ceiling system was applied. On the 19th, 10,507 applicants submitted subscription accounts for 35 units in the first-priority subscription. The average competition rate reached 300 to 1. This complex is supplied by GS Construction's subsidiary 'Xi S&D' through the Nakwon and Cheonggwang Yeonrip street housing maintenance project, with a total of 67 households. It consists of 2 buildings, sized 50 to 69㎡, with a sale price of 32.52 million KRW per 3.3㎡. The price range of 630 million to 890 million KRW, not exceeding 900 million KRW, also contributed to its popularity as it allowed mid-term loans.
As the subscription competition rate in Seoul continues to rise, it is analyzed that many actual demanders are actively applying. Experts advise that applicants should comprehensively consider that these complexes are relatively less preferred small-scale complexes, that the price ceiling system applies with an 8-year resale restriction, and that there is a 10-year re-subscription restriction. However, since the supply timing of large complexes such as 'Dunchon Jugong' in Dunchon-dong, Gangdong-gu is uncertain, and new supply in Seoul has sharply contracted after the implementation of the price ceiling system, subscription competition rates are expected to continue soaring for the time being.
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