Sejong The Hue Yemiji (Saenaru Village Complex 4)
Exclusive 84㎡, Competition Rate 6885:1
Price Ceiling System Applied Complex
Popular for Potential Market Price Gains
[Asia Economy Reporter Hwang Seoyul] While both the apartment market and the subscription market in Sejong City have been sluggish, nearly 7,000 people flocked to apply for a single household in a Sejong City complex through a non-priority subscription. This is believed to be due to the application of the price ceiling system, which supplied the units at prices cheaper than the market value.
According to Subscription Home on the 19th, the non-priority subscription competition rate for the 84㎡ exclusive area of 'Sejong The Hue Yemiji (Saenaru Village Complex 4)' built in the Jiphyeon-dong area of Sejong City recorded 6,885 to 1. For the same complex, the 59.98㎡ exclusive area also received 2,862 applications for one household. This complex received official contracts from May to June 2019 and began move-ins last November, with a total of 338 households.
Apartment prices in Sejong City have been continuously declining. The apartment sale price index in Sejong City has been on a downward trend since May 2021. According to the apartment sale price index surveyed by the Korea Real Estate Board, the index peaked at 100.1 in May 2021 and has decreased every month until last month (92.8).
The subscription market is also not active. According to data from Real Estate R114, the average nationwide apartment subscription competition rate has been decreasing year by year. The competition rate, which was 27.92 to 1 in 2020, was recorded as 19.79 to 1 last year and 12.11 to 1 this year. The average subscription competition rate was calculated annually until 2021 and up to May this year.
The reason for the remarkable competition rate despite this situation is analyzed to be the much cheaper sale price compared to the market price. This complex, a private-participation public sale apartment, is subject to the price ceiling system. The sale price for the 84㎡ exclusive area offered through the non-priority subscription is 342 million KRW. For the same complex and area listed on Naver Real Estate, the sale price is listed at 740 million KRW. Winning the subscription could potentially yield a market price difference of about 400 million KRW.
The same applies to the 59.98㎡ exclusive area with a sale price of 259 million KRW. Nearby Surubae Complex 6 Sejong The Sharp Yemiji (59.9㎡ exclusive area) has sale prices ranging from a minimum of 465 million KRW to a maximum of 650 million KRW.
Meanwhile, with the government announcing plans to unveil a revised price ceiling system on the 21st, there are expectations for changes in the subscription market. Park Jimin, head of the Monthly Subscription Research Institute, stated, “If the gap between sale prices and subscription prices narrows after the announcement of the revised price ceiling system, the options for buyers will increase, and the high competition rates seen in 'lottery subscriptions' may decrease. Since it takes time to move in, buyers will be able to choose between slightly cheaper subscriptions compared to sale prices or immediate move-in through purchase, depending on their personal circumstances.”
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