March 'Jupjup' Disappearance Forecast... Unranked Subscription Craze Hits Unsold Complexes Too

Hwaseong Namyang City Pradium 4th Phase 62:1
Some Lots in Anseong Gondo Also 147:1

The weekly increase rate of apartment prices in the Seoul metropolitan area rose to the highest level in 8 years and 8 months since the Korea Real Estate Board began compiling statistics in May 2012. Apartment prices in Seoul have also continued to rise for three consecutive weeks since the new year, showing little sign of stabilization. The Korea Real Estate Board (formerly the Korea Appraisal Board) announced on the 21st that the nationwide apartment sale prices increased by 0.29% in the third week of January (as of the 18th), up from 0.25% the previous week. By region, apartment prices in the Seoul metropolitan area rose by 0.31%, marking the highest increase rate in 8 years and 8 months since the Real Estate Board started compiling statistics. The photo shows apartment complexes in downtown Seoul as seen from 63 Square in Yeouido, Seoul, on the morning of the same day.

As housing purchase sentiment shows little sign of calming down, the so-called 'jupjup' craze for non-priority subscription is spreading even to unsold complexes on the outskirts of the Seoul metropolitan area. It appears that last-minute demand surged ahead of the tightening of non-priority subscription qualifications scheduled for March.

According to the Korea Real Estate Board's Subscription Home on the 28th, City Construction's non-priority subscription held the previous day for 'City Pradium 4th Phase' in Namyang New Town, Hwaseong-si, Gyeonggi-do, saw 2,731 applicants for 44 units, recording an average competition rate of 62 to 1. This apartment complex experienced undersubscription up to the second priority during its sale in December last year. In particular, the 84㎡ B-type, with 19 units supplied, had a non-priority subscription competition rate reaching 100 to 1 on that day.

Earlier, Ssangyong Construction's non-priority subscription on the 25th for 'Ssangyong The Platinum Premier' in Gongdo-eup, Anseong-si, also attracted 3,606 applicants for 636 units. For the penthouse 129㎡ P-type, only one unit was available but attracted as many as 147 applicants. This complex also had four out of six housing types undersubscribed during the first and second priority subscriptions in early December last year.

The industry points to the recent surge in housing prices in major areas of Seoul and the metropolitan area as the background for this 'jupjup' craze, with young people who lack subscription savings accounts or have low scores flocking to relatively affordable apartments in the outskirts. Housing purchase sentiment for metropolitan area apartments has reached an all-time high. As of the survey on the 18th of this month, the metropolitan area apartment sales supply-demand index recorded 117.2, up 1.9 points from the previous week (115.3). This is the highest figure since the Korea Real Estate Board began this survey in July 2012.

Additionally, the significant tightening of non-priority subscription qualifications starting in March seems to have had an impact. Currently, non-priority subscription can be applied for by anyone aged 19 or older without restrictions such as holding a subscription savings account or being a non-homeowner. However, the government recently revised housing supply regulations to allow only non-homeowners residing in the relevant area to apply for non-priority subscriptions from March onward.

However, some caution against indiscriminate purchases. An industry insider advised, "There is a trend of blindly applying even to unsold complexes by riding the wave of the atmosphere," and recommended, "It is necessary to carefully examine the market situation of the area along with the sale price."