'Nationwide Lotto Subscription' Sejong Ja-i The City Attracts 220,000 Applicants in First Priority

Average Competition Rate Recorded at 199.7 to 1

Sejong Ja-i The City perspective. (Provided by GS Construction)

[Asia Economy Reporter Kim Hyemin] More than 220,000 people flocked to 'Sejong Xi The City,' which attracted attention as a nationwide lottery subscription.

According to the Korea Real Estate Board's subscription website on the 29th, the complex, which received first-priority subscriptions the day before, recorded an average competition rate of 199.7 to 1, with 220,842 applicants for 1,106 households.

The complex attracted attention from the start because nationwide subscription was possible. While 50% of the general supply was allocated to those who had continuously resided in Sejong City for more than one year, the remaining supply could be subscribed to from anywhere nationwide, which is cited as the reason for the influx of subscriptions.

In fact, 33,279 applicants applied for the first-priority subscription limited to residents of Sejong City for more than one year, resulting in an average competition rate of 60 to 1. Meanwhile, the competition rate for other areas, where those who failed in the local area and nationwide applicants competed together, recorded an average of 398 to 1. The highest competition rate was for the 84㎡P type, with 2 households recruiting a total of 2,475 applicants, showing a competition rate of 2,474 to 1 in other areas.

The fact that units over 85㎡ in exclusive area were eligible for lottery-based selection also contributed to the overheated subscription. Of the total 1,350 households, 89% (1,200 households) were units over 85㎡, and about 500 households, which is 50% of the general supply, were allocated as lottery-based units. In particular, lottery-based units can be won even by homeowners if they pledge to dispose of their existing homes. The type with the most applicants was also a lottery-based unit, 101㎡B. For this size in the other category, 61,592 applicants applied for 384 households.

The application of the price ceiling system, which kept the sale price at half the market price of nearby apartments, and the fact that this is the last private sale in Sejong this year with nationwide subscription available, are also cited as reasons for the influx of applicants.

Meanwhile, despite government warnings to refrain from purchasing amid concerns of a housing price peak, including Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki, a large number of applicants flocked, drawing attention. An industry insider evaluated this as "evidence of the undying interest in real estate."