[Practical Finance] If Your Subscription Score Is Not High... Consider 'Non-Subscription Account' Applications

Including 'Jupjup' Applications for Private Rental, Officetels, and Urban-Type Housing... Advantages of Lottery System Wins

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[Asia Economy Reporter Hwang Seoyul] Interest is growing in ‘non-subscription savings account’ applications, which allow people to secure housing without being constrained by winning points or having a subscription savings account. Although the point system accounts for a significant portion of apartment subscription selection ratios, it is difficult for applicants with low points to even challenge due to the high winning points required.

Points have become an important factor in winning in the subscription market. In the case of private housing subscriptions, a considerable portion is selected based on points. For houses with an exclusive area of 85㎡ or less, the point-based selection ratio can be 100% (in speculative overheated districts and public land districts within the metropolitan area). Winning points are also set high. For example, in March, the first-priority competition rate for ‘Garak Village 7 Complex Joongheung S-Class Pradium’ soared up to 934 to 1, and for the 84㎡A housing type, the winning points for the first-priority local area ranged from a minimum of 71 points to a maximum of 80 points, which is close to a perfect score (84 points). To receive a perfect subscription point score, one must meet conditions such as △more than 15 years of no home ownership (32 points) △6 or more dependents (35 points) △more than 15 years of subscription savings account membership (17 points).

Because of this, some applicants are showing interest in ‘non-subscription savings account’ quotas that do not require a subscription savings account. Representative examples include △private rental housing △officetels △urban lifestyle housing. Unlike general apartment housing subscriptions, these allow applicants to deposit subscription money into an account with free deposit and withdrawal without using a subscription savings account. Another advantage is that restrictions on re-winning and subscription qualifications applied to apartment subscriptions do not apply.

However, since it is a lottery system, ‘non-subscription savings account’ applications also record high competition rates. For example, last month, ‘Hillstate Indeokwon,’ a private rental apartment supplied in Uiwang City, Gyeonggi Province, showed an average competition rate of 231.8 to 1. In December last year, the ‘Hillstate Cheonan Asan Station Duclass’ officetel in Asan City, Chungnam Province, also closed all types with an average subscription competition rate of 242.7 to 1.

‘Jupjup,’ known as non-priority subscription, is also one of the subscriptions that do not require a subscription savings account. Non-priority subscription is for complexes where the subscription period has ended but applications are accepted again if the qualification conditions were not met and the subscription was canceled or if there are remaining units. Since this is also conducted by lottery, no subscription savings account is required, and applicants without a home can apply. Even in this case, competition rates are tremendous for apartments in good locations. For example, for the 99.80㎡A housing type of ‘Gwacheon Weverfield’ in Gwacheon City, Gyeonggi Province, which closed non-priority subscription applications this month, 3,617 applicants competed for one unit.

However, if the supply arises from post-application in regulated areas or resupply of canceled contract housing, the qualification conditions for non-priority subscription become strict. In this case, subscription applications are restricted during the re-winning restriction period, and duplicate applications for other houses with the same winner announcement date are not allowed. Moreover, if you win in such cases, you should keep in mind that a re-winning restriction period of 10 years in speculative overheated districts and 7 years in subscription overheated areas will be applied in the future.