General Priority 1 Pre-Subscription Starts on the 4th... 5 Essential Tips to Check

Prospective applicants are receiving consultations at the pre-application site for the 3rd New Town located in Jangji-dong, Songpa-gu, Seoul, on the 28th of last month. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Jo Gang-wook] The first-priority application for general supply in the pre-subscription of new housing sites in the metropolitan area, including the 3rd phase new towns, will begin on the 4th. The total number of public sale general supply units available this time is 378, with 110 units in Incheon Gyeyang, 174 units in Namyangju Jinjeop 2, and 94 units in Seongnam Bokjeong 1.

According to the Korea Land and Housing Corporation (LH) on the 3rd, special supply for public sales and applications for newlywed hope towns in the relevant areas will be completed by this day. On the 4th and 5th, applications for first-priority general supply in the relevant areas will be accepted, and from the 6th to the 10th, first-priority general supply applications from the metropolitan area will be accepted. On the 11th, second-priority general supply applications will be received. Newlywed hope towns will close applications in the relevant areas on the 3rd and proceed with metropolitan area applications from the 4th to the 11th.

For public sale general supply, only those who have lived in the relevant area for more than 3 years without owning a home and have a recognized subscription savings payment amount of 6 million KRW or more can apply. In the case of Seongnam Bokjeong 1, an additional requirement of residing in Seongnam City for more than 2 years is added. Those residing in the relevant area but who do not meet the no-home ownership period or payment amount requirements for first priority can apply on the 5th. First-priority applicants residing in Gyeonggi Province and the metropolitan area can apply from the 6th to the 10th, and second-priority general supply applications can be submitted on the 11th.

Below is a summary of five frequently asked questions by prospective applicants during LH’s pre-subscription consultations.

How is the residence period calculated?

▲ The residence period refers to the period of ‘continuous’ residence in the relevant area. For example, if a household moved into Namyangju City, Gyeonggi Province from 2015 to 2018, then moved out to Seoul in 2019, and moved back to Namyangju City in 2020 and has been residing there since, the residence period is calculated from 2020. However, if the period of overseas stay exceeds 90 days or the annual stay exceeds 183 days, the person cannot be recognized as a resident of the relevant area. It is recommended to check the recruitment announcement.

If a house was inherited and then disposed of, how is the no-home ownership period recognized?

▲ The no-home ownership period considers the period during which the applicant and all household members have not owned a home. If the applicant or household members have owned a home, the no-home ownership period is calculated from the day they became no-home owners after disposing of that home. If they have owned homes more than twice, the period is calculated from the most recent date they became no-home owners.

However, according to Article 53, Paragraph 1 of the Housing Supply Regulations, if a shared ownership interest in a house was acquired through inheritance and the house was disposed of, that house is considered as not owned, and the period of ownership is excluded from the no-home ownership period calculation. This does not apply if the acquisition was not through shared ownership. For example, if Mr. A disposed of an apartment he owned on February 3, 2021, then acquired a shared ownership interest in a house through inheritance on March 5, 2021, disposed of the shared ownership interest on April 20, 2021, and applied for public sale general supply housing qualification on August 4 of the same year, Mr. A’s no-home ownership period is calculated from February 4, 2021, to the date of the recruitment announcement.

How is income calculated?

▲ For public sale general supply applications for houses with exclusive area of 60㎡ or less, income and asset requirements must be met. Income must be 100% or less of the average monthly income of urban workers’ households (6,031,60 KRW for a 3-person household), assets must be 215.5 million KRW or less in real estate, and 34.96 million KRW or less in vehicle value. All members of the no-home ownership household must meet these criteria, not just the applicant. Income sources such as earned income and business income have different relevant data source institutions. Detailed guidance is provided in Table 4 of the recruitment announcement, so please refer to it.

How is ownership calculated if assets are jointly owned?

▲ If real estate such as buildings or land, or vehicles are shared as ownership shares, only the value corresponding to the owned share is considered. However, if the shares are shared among the same household members, the total share value is calculated.

If there is a restriction on re-winning, is there a restriction on applying for general supply?

▲ Persons who have won housing subject to re-winning restrictions, or those belonging to their household, or those who have been treated as disqualified winners in the past and are within the subscription restriction period cannot be selected as winners in the pre-subscription. Whether the applicant or household members have subscription restrictions can be checked on the Subscription Home website.