[Asia Economy Reporter Kim Yuri] A perfect score winner in the point-based system emerged in the apartment subscription for the Gwacheon Knowledge Information Town in Gyeonggi Province. The cutoff score for winning a mid-to-small sized apartment exceeded 69 points, surpassing even popular areas in Seoul. This score is only achievable by a family of four who receive perfect scores for both the period of being homeless and the subscription period of the housing subscription savings account. For families with one child, it has become virtually impossible to expect winning a subscription not only in Seoul but also in popular metropolitan areas.
According to the Korea Real Estate Agency's subscription homepage on the 10th, an 84-point perfect score subscription was recorded in the 'Other Gyeonggi (residents outside Gwacheon in Gyeonggi Province)' category for the 84㎡ (exclusive area) E-type of 'Gwacheon Prugio Eoullim Lavieno,' whose winners were announced that day. A perfect score is given to those with six or more dependents and who have been homeless and subscribed to the housing subscription savings account for more than 15 years each. The lowest winning score for residents in the Other Gyeonggi category for this size was 76 points, and the average winning score soared to 78.86 points.
For areas 85㎡ or smaller, where winners are selected 100% by points, there were no winners with less than 69 points in any type or region.
For apartments larger than 85㎡, where the supply was split evenly between point-based and lottery systems, the minimum winning score for residents outside the relevant area was also 69 points. This means that a family of three cannot win regardless of how long their homeless period and subscription period are. Even applicants from the 'relevant area' who must have lived in Gwacheon for more than two years were found to be eliminated if their score did not exceed 66 points, except for the 105㎡ A-type (58 points).
This complex, which received first-priority subscriptions on the 3rd of this month, attracted 190,409 applicants for 458 units, recording an average competition rate of 415.7 to 1. Besides this apartment, 'Gwacheon Lesento Desiang' and 'Gwacheon Prugio Ortus' also received subscriptions on the same day, with winners to be announced on the 11th and 12th respectively. These complexes also recorded high competition rates of 470.3 to 1 and 534.9 to 1, respectively, so it is expected that the winning cutoff scores will generally be around 70 points. Considering that 'Gam-il Prugio Markber' in Hanam Gam-il District, which was sold around the same time, had an average competition rate of 404.7 to 1, the industry expects the winning cutoff score to reach the mid-to-high 60s.
Experts predict that, with apartment prices rising from Seoul to the metropolitan area and provinces, such subscription overheating will continue for the time being in apartments under the price ceiling system that guarantee several hundred million won in capital gains. Additionally, concerns are rising that many tenants burdened by soaring rent prices due to the implementation of the rent ceiling and contract renewal request systems will enter the sales or subscription market, further fueling subscription overheating and house price increases. According to Realtoday, the average competition rate for first-priority apartment subscriptions in Seoul this year until the 5th of this month reached 71.0 to 1, more than double last year's rate of 31.6 to 1. In fact, low-score applicants, for whom winning subscriptions have become an 'insurmountable wall,' are actively purchasing mid-to-low priced homes, causing house prices in the outskirts of Seoul to rise sharply recently.
An industry insider said, "Despite restrictions such as a ban on resale for up to 10 years for apartments under the price ceiling system, subscription applicants are flocking in large numbers because capital gains of several hundred million won are guaranteed," adding, "This overheating trend is expected to continue and become a factor of instability in house prices."
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