'1 Billion Lotto' Gwacheon 4 Households Subscription Attracts 8,500 Applicants... Competition Rate '2132 to 1'

A view of 'Gwacheon Weverfield' in Wonmun-dong, Gwacheon-si, Gyeonggi Province (Photo by Asia Economy DB)

[Asia Economy Reporter Ryu Tae-min] Approximately 8,500 people flocked to the non-priority subscription for four apartments in Gwacheon City, where winners can expect a market price gain of over 1 billion KRW, resulting in a competition rate of several thousand to one. It is interpreted that the crowd gathered due to the units being offered at prices similar to those from four years ago.

According to the Korea Real Estate Agency's subscription website on the 10th, 'Gwacheon Weverfield' in Wonmun-dong, Gwacheon City, Gyeonggi Province, recorded an average competition rate of 2,132.7 to 1 with 8,531 applicants for four units in the non-priority subscription held the previous day. The 99㎡A type saw the highest competition rate with 3,617 applicants for one unit. Additionally, the 84㎡B type had a competition rate of 2,274 to 1 for one unit, and the 59㎡B type had 2,640 applicants for two units, showing high competition rates.

The reason for the influx of applicants is that the units were supplied at low prices similar to those during the general sale four years ago. This complex, which was sold in 2018, had four units resupplied after the Gyeonggi Province Special Judicial Police detected fraudulent subscriptions and canceled the contracts. The sale prices by exclusive area are ▲59㎡B 897.31 million KRW ▲84㎡B 1.08814 billion KRW ▲99㎡A 1.1659 billion KRW. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the 84㎡ unit in this complex changed hands for 2.19 billion KRW in August last year, indicating an expected market price gain exceeding 1 billion KRW.

The low entry barrier is also cited as a reason for its popularity. This complex has no mandatory residence period, so buyers can pay only 10% of the contract amount and find tenants to pay the remaining balance. Furthermore, anyone aged 19 or older who is a household head without a home residing in Gwacheon can apply, and since the selection is by lottery, it is believed that prospective applicants with low scores flocked. Once the ownership transfer registration is completed, resale is also possible.

Moreover, a flood of non-priority subscription units is expected in Gwacheon this year. Previously, Gwacheon City announced that contracts for a total of 196 units were canceled across two reconstruction complexes and five sites within Gwacheon Knowledge Information Town. This includes 176 units such as 'Jade Xi' and 'Prugio Bellarte,' for which the Gyeonggi Province Special Judicial Police detected fraudulent subscriptions and notified contract cancellations.