It is becoming increasingly difficult to secure a new apartment through pre-sale in Seoul. Recently, the number of subscription applications for apartments being sold in Seoul has surged due to expectations of winning a "lottery apartment," causing subscription scores to skyrocket. According to an analysis by a real estate information company, the minimum subscription score of subscription account holders who won the apartment lottery in Seoul in July and August this year averaged 60.6 points. This is 4.7 points higher than the first half of this year (55.9 points). To reach a subscription score of 60 points, one must have been without a home for more than 15 years and have at least four dependents. However, it is not easy for the 30-40 age group to meet these requirements.
The rise in subscription scores for apartments in Seoul is believed to be due to anxious sentiment that future apartment supply will decrease because of government regulations such as the implementation of the price ceiling system. As the supply of apartments decreases, subscription account holders with high subscription scores may also fail to win, prompting many to rush to apply, which in turn drives subscription scores even higher. In fact, 249,646 applications were submitted for 3,922 apartments sold in Seoul in July and August this year.
As subscription scores soar and competition intensifies, those who have drifted away from winning, known as "Cheongpoja" (subscription quitters), are turning their attention to regional housing association apartments, which do not require subscription accounts (subscription scores). The biggest feature of regional housing association apartments is that they can be supplied without a subscription account (subscription score). Without fierce competition, applicants can receive their desired unit on a first-come, first-served basis. The threshold for joining the association is also low. Anyone who has been a non-homeowner residing in Seoul, Incheon, or Gyeonggi Province for more than one year as of the date of the association establishment approval application, or owns one home with an exclusive area of 85㎡ or less, can receive supply from regional housing association apartments supplied in Seoul.
Since the supply price is lower than the market price of surrounding apartments, if chosen well, one can expect capital gains comparable to "lottery" apartments. Another reason regional housing association apartments have recently attracted attention is the significant enhancement of their safety and transparency following the 2017 amendment of the Housing Act.
Meanwhile, an apartment with high expected capital gains is coming out in Gangdong-gu, considered the youngest among the "Gangnam 4 districts" in Seoul. It is "Seongnae Owner City," for which the Seongnae Owner City Regional Housing Association Promotion Committee is recruiting members in the area of 67-6 Cheonho Old Road, Gangdong-gu, Seoul. This apartment is planned to have 504 units of types 49㎡A·B, 59㎡A·B, 74㎡A, and 84㎡A, with all units having an exclusive area of 84㎡ or less, which is highly preferred by consumers.
Seongnae Owner City is in the Gangnam living area and offers convenient transportation. Using Cheonho Station, a transfer station for subway lines 5 and 8 near the complex, residents can quickly reach Gangnam areas such as Songpa and Gangnam-gu, as well as central Seoul areas like Jongno and Gwanghwamun. It is also convenient to use the metropolitan transportation network, including Cheonho-daero, Olympic-daero, and Jungbu Expressway. Additionally, as a subway station area of Cheonho Station, it is regarded as the best transportation hub in eastern Seoul, connecting southeastern Seoul districts such as Songpa and Gwangjin-gu with eastern metropolitan areas like Hanam and Gwangju.
The surrounding living infrastructure is well established. Shopping facilities such as E-Mart, Hyundai Department Store, 2001 Outlet, Rodeo Street, and Cheonho Market are easily accessible. Moreover, Olympic Park, Cheonho Park, Hangang Park, and Pungnap Neighborhood Park are nearby, providing a pleasant residential environment. Administrative facilities such as Gangdong-gu Office, Gangdong Fire Station, and Gangdong Police Station are also easily accessible. School commuting is convenient with Seongil Elementary School, Seongnae Middle School, and Youngpa Girls' Middle and High Schools nearby.
There are abundant development benefits around the area, which are considered the strongest factors driving up surrounding house prices in the real estate market. Nearby, the Cheonho 1 Urban Environment Improvement Project and Cheonho 2 and 3-dong Urban Regeneration Projects are underway. There are also plans to extend subway lines 5 and 8. In particular, the extension of line 8, the Byeollae Line, is scheduled to open in 2023, promising direct benefits. The Byeollae Line extension of line 8 will start from Amsa Station near the complex, pass through Guri City, and reach Byeollae-dong in Namyangju, Gyeonggi Province, with six new stations planned. Since the establishment of new subway lines is one of the strongest factors driving up surrounding house prices in the real estate market, investors' attention is focused on Seongnae Owner City. The nearby Godeok Commercial and Business Complex is expected to house over 60 companies, including the global furniture company IKEA.
The reasonable supply price compared to the surroundings is also attracting attention. Currently, the market price of apartments near the complex is around 30 to 40 million KRW per 3.3㎡. However, Seongnae Owner City is supplied at a much lower price, making it possible to purchase a home at an affordable price and expect capital gains comparable to lottery apartments.
Compared to general apartments, regulations are also less strict. Most importantly, no subscription account is required. Also, anyone who has been a non-homeowner residing in Seoul, Incheon, or Gyeonggi Province for more than one year as of the association establishment approval application date, or owns one home with an exclusive area of 85㎡ or less, can join the association.
The promotional center is located at 66-1 Bangi-dong, Songpa-gu, Seoul.
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