Hillstate Lishville Gangil, 256 to 1... Top 5 Competition Rates Concentrated in the Second Half
Soaring House Prices, Low Sale Prices, Supply Shrinkage Concerns... Cutoff Score 61, Overheating Signs
[Asia Economy Reporter Yuri Kim] The last apartment sale in Seoul this year ended with a triple-digit competition rate, closing in an overheated state. Due to soaring house prices, affordable sale prices, and concerns over supply contraction, the Seoul subscription competition rate this year soared to the highest level since official statistics began.
According to Korea Real Estate Agency's Subscription Home on the 30th, the Hillstate Lishuvil Gangil apartment in Gangdong-gu, Seoul, which received first-priority subscriptions the day before, had 117,035 applicants for 458 units, recording an average competition rate of 255.5 to 1. This is among the top five subscription competition rates in Seoul this year. For the 101㎡ (exclusive area) C-type apartment, the competition rate from other regions (Gyeonggi and Incheon) reached 1,210.3 to 1. Including special supply the day before, the total number of applicants for this complex approached 137,500.
According to Real Estate 114, the average apartment subscription competition rate in Seoul this year was 76.97 to 1, the highest since statistics began in 2002. This rate does not include the Hillstate Lishuvil Gangil results. The national average competition rate also nearly doubled from 15.34 to 1 last year to 27.38 to 1.
In particular, subscription overheating was prominent in the second half of the year. The top five complexes with the highest subscription competition rates were all apartments supplied in the second half. It is evaluated that the influx of apartments supplied at about half the market price due to government price controls fueled the subscription overheating. Concerns that supply shortages will worsen next year due to the private land price ceiling system and strengthened reconstruction regulations, which are major housing supply sources in Seoul, are also cited as causes of subscription overheating. In fact, the Dunchon-dong Jugong apartment in Gangdong-gu, originally scheduled for sale within the year, has been delayed due to internal conflicts within the association over general sale prices.
In this process, even small-scale complexes that had not attracted much attention from demanders saw a flood of applicants. The Godeok Artes Misozium in Sangil-dong, Gangdong-gu, which recorded the highest competition rate this year at 537 to 1, has only 100 units. As competition rates soared, the winning cutoff scores also rose. The average cutoff score was 61 points, exceeding the maximum score (57 points) that a 30-year-old in a four-person household can achieve.
Given this situation, tens of thousands of people flocked to no-priority subscriptions called 'Jupjup' (meaning picking up). The 59㎡ unit of 'DMC Fine City Xi' in Susaek-dong, Eunpyeong-gu, which received no-priority subscriptions the day before, had 300,000 applicants for just one unit. Since no-priority subscriptions have less stringent eligibility, many low-score applicants and homeowners applied. A maintenance industry official said, "With growing concerns over supply shortages, such subscription overheating is expected to continue next year."
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