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Busan Public Housing Land Sale, Average Competition Rate 80 to 1

ePyeonhansesang Eco Delta Centerpoint
Affordable Price Compared to Market with Pre-sale Price System Applied

Busan Public Housing Land Sale, Average Competition Rate 80 to 1 The photo is unrelated to the content / Photo by Yonhap News

[Asia Economy Reporter Hwang Seoyul] Despite the sluggish housing market, public land housing complexes in the Busan area subject to the price ceiling system recorded a high average competition rate of 80 to 1. Some experts predict that as certain regulations affecting prices are eased, demand for public land housing will increase even more.


According to Cheongyak Home on the 7th, the average competition rate for the public land price ceiling system-applied complex ‘e-Pyeonhansesang Eco Delta Centerpoint’ was 79.90 to 1. For the 85㎡P housing type, which recruited only one household, the highest competition rate reached 443 to 1. Even the 85㎡C type, which had the lowest competition rate, recorded 48.32 to 1, higher than the overall competition rate of 43.2 to 1 for Busan area units under 85㎡ (exclusive area) in the first half of the year, as compiled by Real Estate R114.


Although the housing market has recently cooled, demand still concentrates on homes subject to the price ceiling system, which are supplied at prices lower than market value. For example, the 84.98㎡A unit, which had a competition rate of 80.51 to 1, was priced between 444.3 million and 477.7 million KRW. Nearby, the ‘e-Pyeonhansesang Myeongji’ (87㎡ exclusive area), completed in February 2019, is listed on Naver Real Estate with prices ranging from 640 million to 850 million KRW. The ‘Busan Myeongji Joongheung S-Class The Terrace’ (84㎡), completed in January 2019, is priced between 700 million and 895 million KRW.


About 85% of the supply was allocated as special supply, resulting in fewer units available for general sale, which also contributed to the rise in competition rates. Compared to the ‘Eco Delta City 7 Block Hoban Summit,’ where 42.78% of units were for general sale last year, the competition rate was higher despite similar prices. The highest competition rate for that complex was 65.74 to 1 at the time.


With the government rationalizing the price ceiling system and lifting designations of some areas as speculative overheated zones or regulated districts, factors driving price increases are growing, and the popularity of homes built on public land is expected to rise further. Park Jimin, head of the Monthly Subscription Research Institute, predicted, "The price increase is expected to be higher for homes built on private land than on public land, so preference for public land housing subscriptions will be higher."


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