[Asia Economy Reporter Ryu Tae-min] The popularity of non-regulated areas, which have avoided the impact of the government's real estate measures, is rising.
Among 97 housing types that received subscription applications in non-regulated areas of the metropolitan area in the first half of this year, 85 housing types were closed in the first priority. The first priority subscription closing rate recorded 88%, proving its popularity. The average competition rate for first priority closing by housing type was 62.2 to 1. Non-regulated areas are free from various regulations, so the subscription market seems to be popular because there is relatively less burden in terms of financing loans or subscription point competition.
In non-regulated areas, anyone over 19 years old who has been a subscriber to the subscription savings account for more than 6 months (1 year in the metropolitan area) qualifies for first priority, not only the head of the household but also household members. Even homeowners can apply for first priority subscription, lowering the entry barrier. There is no restriction on re-winning, and the loan-to-value ratio (LTV) can be up to 70%, reducing the loan burden.
Transaction volume is also increasing. In non-regulated areas in Gyeonggi-do such as Dongducheon-si, Pocheon-si, and Yeoju-si, apartment transactions from January to May this year increased significantly compared to the previous year. According to data from the Korea Real Estate Board, Pocheon-si increased by 247% from 470 cases last year to 1,631 cases this year, Dongducheon-si from 681 cases to 1,964 cases, an increase of 188%, and Yeoju-si from 682 cases to 1,318 cases, a 93% increase. Pocheon-si showed the highest growth rate.
According to real estate research firm Real Today, 46,048 households (including rental, excluding officetels, based on subscription applications) are scheduled to be supplied nationwide in July this year. Among 16,722 households in the metropolitan area, 454 households will be supplied in Pocheon, Gyeonggi-do, and among 13,811 households in local areas, 9,608 households will be supplied in 15 complexes in non-regulated areas such as Gumi-si in Gyeongbuk, Chungju-si in Chungbuk, and Iksan-si in Jeonbuk.
This month, sales are scheduled in Pocheon-si and Dongducheon-si, Gyeonggi-do. Seyoung Comprehensive Construction plans to sell 'Pocheon Riverfore Seyoung Richel' in the Eoryong-dong area of Pocheon-si, Gyeonggi-do. The complex consists of 454 households with 1 basement floor to 20 floors above ground, with exclusive areas of 61 to 84㎡.
Dongbu Construction is currently selling 'Jihang Station Centreville Parkview' in Jihaeng-dong, Dongducheon-si, Gyeonggi-do. The complex consists of 314 households in 5 buildings, from 1 basement floor to 20 floors above ground, with an exclusive area of 84㎡.
Local non-regulated areas are also worth noting. Daewoo Construction plans to sell 'Gumi Prugio Central Park' in Wonho-ri, Goa-eup, Gumi-si, Gyeongbuk. The complex will be composed of 819 households in 9 buildings, from 3 basement floors to 24 floors above ground, with exclusive areas of 84㎡ and 98㎡.
Hanwha Construction is currently selling 'Hanwha Forena Seochungju' at 654 Yongjeon-ri, Jungangtap-myeon, Chungju-si, Chungbuk. The complex consists of 478 households in 6 buildings, from 1 basement floor to 20 floors above ground, with exclusive areas of 77 to 84㎡.
Hyundai Construction is currently selling 'Hillstate Iksan' in Madong 24-5 area, Iksan-si, Jeonbuk. The complex consists of 454 households in 6 buildings, from 2 basement floors to 29 floors above ground, with exclusive areas of 59 to 126㎡.
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