First Private Pre-Subscription Conducted... 2,500 Units in 1st Phase
Larger Area and Lottery System Introduced Compared to Public
However, Far from Seoul and General Subscription Restricted if Selected
In Osan Segyo 2 and Pyeongtaek Godeok districts in Gyeonggi Province, and Jang-an district in Busan, a total of 2,528 private apartment units will be supplied through the first pre-sale subscription. This private apartment pre-sale subscription is an expansion of the pre-sale subscription system, which had previously been applied only to public housing, in order to enhance the government's early housing supply effect. However, since the supply targets are in the outskirts of the metropolitan area or local regions and general subscription is not possible upon winning, there are evaluations that the policy effect may fall short of expectations.
On the 30th, the Ministry of Land, Infrastructure and Transport announced the first pre-sale subscription winner recruitment notice for three districts: Osan Segyo 2 (1,391 units), Pyeongtaek Godeok (633 units), and Busan Jang-an (504 units), and began the full supply schedule. Pre-sale subscription is conducted by disclosing the estimated sale price 2 to 3 years before the main sale, and this is the first time it has been introduced for private sales.
◆ Increased supply of 84㎡ units and introduction of lottery system=The pre-sale subscription targets include 1,012 units of 84㎡ (exclusive area), known as the "national standard size," accounting for 40% of the total. In Pyeongtaek Godeok, all units are 84㎡ or larger, with 230 units in the 100㎡ size range also supplied.
The estimated sale prices for 84㎡ units are 435.6 million KRW in Osan Segyo 2, 474.9 million to 478.6 million KRW in Pyeongtaek Godeok, and 425 million KRW in Busan Jang-an, which is about 60-80% of the surrounding market prices.
Notably, in the first private pre-sale subscription, 680 units, or 27% of the total, will be supplied through a lottery system. Single-person households, newlywed couples without children, and high-income dual-income households can also win. Additionally, the general supply ratio is 37%, more than twice that of public pre-sale subscriptions (15%), providing more opportunities for middle-aged and older adults who find it difficult to aim for special supply.
However, there are criticisms that the location and transportation are relatively poor. Besides the regions announced in this recruitment notice, the second-phase new towns such as Yangju Hoecheon and Paju Unjeong 3, which will be announced next year, have poor accessibility to Seoul. Another drawback of the private pre-sale subscription is that winning is considered as using the subscription savings account, so unless the winning status is forfeited, applicants cannot challenge other subscriptions.
◆ Approval of district plans for 3rd phase new towns completed=Meanwhile, the Ministry of Land, Infrastructure and Transport finalized the district plans for the 3rd phase new towns, Goyang Changneung and Bucheon Daejang, on the same day. Accordingly, including Incheon Gyeyang, Namyangju Wangsuk, and Hanam Gyosan, the approval process for district plans for all five 3rd phase new towns has been completed. This is about two and a half years since the final announcement of these new town candidates in May 2019.
The government plans to supply a total of 176,000 housing units through the 3rd phase new towns. Among them, 9,700 units are already being supplied through public pre-sale subscriptions. Starting from the 1st of next month, the third public pre-sale subscription application will begin for 4,167 units in Hanam Gyosan, Gwacheon Juam, Siheung Hajung, and Yangju Hoecheon, and Bucheon Daejang and Goyang Changneung, whose district plans were approved on this day, will be supplied through the fourth pre-sale subscription within next month.
Kim Su-sang, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, said, "The government's plan to supply 2.05 million housing units is progressing without delay," adding, "We will continue to do our best to shorten the time lag in housing supply as much as possible so that the housing market can stabilize early."
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