[Asia Economy Reporter Ryu Tae-min] As the enthusiasm for the subscription market in Seoul and the metropolitan area cools down recently, unsold units are rapidly increasing, leading to a rise in complexes pleading for "careful subscription." This is interpreted as a result of cases where people apply for subscriptions recklessly and then cancel their contracts, making it difficult to supply the remaining units.
According to Korea Real Estate Agency's Subscription Home on the 9th, "Songdo Lux Ocean SK View" in Songdo-dong, Yeonsu-gu, Incheon, which is conducting its sixth non-priority subscription, included a notice requesting careful subscription applications in its announcement on the 8th. The housing name of Songdo Lux Ocean SK View includes a message saying "Please be sure to contact the representative phone number before applying for subscription." The first page of the recruitment announcement also contains a message stating, "Please be sure to check the eligibility requirements when applying for this apartment's non-priority subscription."
It is not only this complex that is pleading for careful non-priority subscriptions. The situation is the same for metropolitan area complexes conducting consecutive non-priority subscriptions. For example, "Cantavil Suyu Palace" in Suyu-dong, Gangbuk-gu, Seoul, which has conducted a total of five non-priority subscriptions even by lowering the sale price, included on the first page of its recruitment announcement: "Recently, due to 'reckless subscriptions,' genuine buyers have lost their chances of winning, causing harm to good-faith applicants," and "Please refrain from applying if you do not meet the eligibility requirements."
"Uijeongbu World Meridian" in Uijeongbu-dong, Uijeongbu-si, Gyeonggi-do, which has conducted six non-priority subscriptions, also included in its recruitment announcement: "Many people apply without consideration. Please be sure to check subscription requirements by contacting the representative number before proceeding with the subscription."
The reason these complexes are urging careful subscription is to avoid repeated non-priority subscriptions. According to current mandatory regulations on non-priority subscriptions, if the subscription competition rate exceeds 1:1, the remaining units must be supplied through non-priority subscriptions regardless of whether the winners cancel their contracts. Therefore, if the market continues to freeze as it is now, increasing contract shortfalls and forcing "infinite repetition" of non-priority subscriptions, the time and cost burden on construction companies will increase. In fact, "Sillim Sky Apartment" in Sillim-dong, Gwanak-gu, Seoul, has undergone non-priority subscriptions 10 times since last year but still has unsold units remaining.
A sales official said, "Non-priority subscriptions are nicknamed 'jupjup' (picking up), and many people in their 20s and 30s apply first without much thought," adding, "Once they win, many cancel their contracts because they cannot afford the costs."
He continued, "To prevent this, more complexes are recently putting large explanations about re-winning restrictions in their non-priority subscription recruitment announcements." If a winner in a regulated area cancels their contract after winning a non-priority subscription, they will face a re-winning restriction of 10 years in speculative overheated districts and 7 years in adjusted target areas.
Meanwhile, the number of unsold units nationwide continues to increase. According to housing statistics released by the Ministry of Land, Infrastructure and Transport, unsold housing units in the metropolitan area reached 4,456 in June this year, a 236% increase compared to 1,325 units in January. In particular, in Seoul, where "reckless subscriptions" had been ongoing, the number surged more than 14 times from 47 units in January to 719 units in June.
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