Rising Interest in 'Jupjup' Among Cheongpoja... Non-Qualified Subscription Competition Rate Doubles Compared to Last Year

Large Influx of Low-Scoring Applicants
Annual Average Competition Rate 44 to 1
Number of Applicants 4.6 Times Last Year

Prospective applicants lining up at a model house in an apartment complex in Gangnam-gu, Seoul.

[Asia Economy Reporter Donghyun Choi] As the cutoff scores for apartment subscription winners soar, the competition rate for so-called 'jupjup' non-priority subscriptions is skyrocketing. This is because many childless couples or singles with low points, who are also ranked lower in special supplies for newlyweds and first-time homebuyers, are flocking in large numbers.

According to the Korea Real Estate Board on the 27th, the average competition rate for 37 complexes that conducted non-priority subscriptions on the subscription home this year reached 44 to 1. This is more than double last year's average competition rate of 21.6 to 1 for non-priority subscriptions. The number of applicants for non-priority subscriptions also reached 199,736 this year, 4.6 times last year's 42,975. Non-priority subscriptions are a process of selecting winners by lottery for households that have not found owners due to contract cancellations or disqualification of general sale winners.

In the non-priority subscription held on the 23rd of this month for 'Suwon Station Prugio Xi' in Godeung-dong, Paldal-gu, Suwon-si, Gyeonggi Province, 16,505 people applied for one household of 84㎡ (exclusive area). This is the highest competition rate among non-priority subscriptions conducted on the subscription home this year. Although this public sale apartment limited eligibility to non-homeowners who have lived in the area for two years, a large number of applicants gathered. Earlier, on the 18th of this month, 2,972 people applied for the remaining 48 households in the non-priority subscription for 'e-Pyeonhansesang Namyang New Town' in Namyang-eup, Hwaseong-si, recording an average competition rate of 61.92 to 1. For the 84㎡ A type of this apartment, 1,178 people applied for 6 households, reaching a competition rate of 196.33. Since anyone aged 19 or older residing in the metropolitan area can apply, applicants from nearby areas also gathered.

Since the number of non-priority subscription supply households in speculative and overheated subscription areas is less than 20, competition was found to be fiercer for apartments that received non-priority subscriptions through the construction companies' own websites. For example, 'Acro Seoul Forest' in Seongdong-gu, Seoul recorded a competition rate of 88,208 to 1, 'Yeongtong Xi' in Yeongtong-gu, Suwon-si recorded 33,863 to 1, and 'Hillstate Songdo The Sky' in Yeonsu-gu, Incheon recorded 28,008 to 1. In Sejong City, 'Sejong Leaders Fore Naritjae Village Complex 2' received as many as 249,000 applicants for one household in the non-priority subscription.

The government has expanded the number of preliminary winners to 500% of the total supply in speculative overheated districts since May last year, and from March this year, expanded it to 300% in overheated subscription areas, the metropolitan area including Incheon and Gyeonggi, and provincial metropolitan cities. However, due to the complicated subscription system and funding difficulties caused by loan regulations, non-priority subscription quantities due to contract cancellations or disqualified winners continue to appear in many apartments. In the recently supplied 'Byeollae Xi The Star' in Byeollae-dong, Namyangju-si, 39 out of 421 winners (9.2%) were found to be disqualified winners. In the overheated subscription for Gwacheon Knowledge Information Town, one out of ten winners was also a disqualified winner.