'Second Preliminary Subscription' District Plan Approval Completed... A Variable for Housing Price Stability

Seongnam Nakseong and Uijeongbu Ujeong District Plans Approved
1,900 Households to Be Offered via Pre-Subscription Next Month
Hong Nam-ki Emphasizes "Full Effort to Secure Supply Volume"
High Competition Expected... Concerns Over Hope Frustration

The district plans for two new public housing sites, Seongnam Nakseong District and Uijeongbu Ujeong District, announced under the 'Supply Plan of 300,000 Houses in the Metropolitan Area,' have all been approved. Some of the units in these areas are scheduled to be preferentially supplied through the second pre-sale scheduled for next month, which is expected to attract significant interest from non-homeowners and genuine demanders. However, there is also analysis suggesting that winning will not be easy, as a large portion of the second pre-sale units will be closed within the local area and the competition rate is expected to be as high as the first round.

1,900 Units in Seongnam Nakseong and Uijeongbu Ujeong to be Supplied Next Month

According to the Ministry of Land, Infrastructure and Transport on the 29th, the government completed the district plan approval process for Seongnam Nakseong District and Uijeongbu Ujeong District after review by the Public Housing Integrated Deliberation Committee. Seongnam Nakseong District, included in the 'Supply Plan of 300,000 Houses in the Metropolitan Area' announced in December 2018, is expected to supply a total of 4,181 units. This area is relatively close to Seoul and adjacent to Bundang and Pangyo New Towns, making its location conditions favorable.

With well-established metropolitan transportation such as the Yongin-Seoul Expressway, Bundang-Suseo Urban Expressway, Bundang Line, and Shinbundang Line, residents can share living areas with Seoul and nearby new towns. Additionally, a waterside park linked to Nakseong Reservoir is being developed near the complex, making the residential environment relatively pleasant.

Uijeongbu Ujeong District is located near Nokyang Station on Subway Line 1, with a total of 4,017 units. It is about 3 km away from the Gyeonggi Northern Provincial Government Office, Uijeongbu City Hall, and Yangju City Hall.

Among the total number of units to be built, the units to be offered through the second pre-sale next month are 900 units in Seongnam Nakseong District and 1,000 units in Uijeongbu Ujeong District. Seongnam Nakseong plans to hold the main sale at the end of 2023 and move-in by 2026, while Uijeongbu Ujeong plans to conduct the main sale by the end of next year and move-in by 2025.

Will the Second Pre-Sale Calm Panic Buying?

With the approval of the district plans for the two new sites on this day, the district plan approvals for all project sites targeted for the second pre-sale have been completed. The second pre-sale will announce recruitment on the 15th of next month. It will be conducted for 11 districts with a total of 10,200 units, more than twice the 4,333 units of the first round completed last month.

In addition to Seongnam Nakseong and Uijeongbu Ujeong, the districts include ▲Namyangju Wangsuk2 (1,400 units) ▲Seongnam Sinchon (300 units) ▲Seongnam Bokjeong2 (600 units) ▲Gunpo Daeyami (1,000 units) ▲Uiwang Wolam (800 units) ▲Suwon Dangsu (500 units) ▲Bucheon Wonjong (400 units) ▲Incheon Geomdan (1,200 units) ▲Paju Unjeong3 (2,100 units).

The government appears to be focusing on the success of the pre-sale to curb soaring housing prices centered around Seoul and the metropolitan area. Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized at the 31st Real Estate Market Inspection Ministerial Meeting on this day, "We will conduct the second pre-sale for about 10,000 units including Namyangju Wangsuk2 in October, and in November, we will make every effort to secure supply by conducting additional pre-sales including private project units."

The industry expects the second pre-sale to record a high competition rate comparable to the first round. Especially, the western areas such as Paju Unjeong3, Incheon Geomdan, and Bucheon Wonjong are expected to be highly preferred. Paju Unjeong3 has the advantage of improved access to Seoul as it will be the terminus of Line A of the Metropolitan Area Express Train (GTX), which is progressing the fastest. Incheon Geomdan already has new town infrastructure in place, and the halo effect of Incheon Gyeyang, which succeeded in the first round, is also anticipated.

However, except for Namyangju Wangsuk2, Suwon Dangsu, Incheon Geomdan, and Paju Unjeong3, the other areas are not large-scale housing sites and will be 100% preferentially supplied only to residents of the respective cities, making it difficult for residents of Seoul and other regions to expect winning. In other areas, a significant portion of opportunities will also go first to local residents, and supply is limited compared to demand, raising concerns that it may only increase the 'hope torture' for young people as in the first round.