No One Beats Profit Margins... 8 Houses in Gwacheon '1 Billion Lotto' Attracted 8,600 People

Perspective View of Gwacheon Prugio Bellarte

[Asia Economy Reporter Kim Hyemin] Although the real estate market has cooled and the popularity of non-priority apartment subscriptions has waned, some "lottery" complexes still continue to attract strong interest due to expected price gains worth billions of won.

According to Korea Real Estate Board's Subscription Home on the 13th, the non-priority subscriptions held the day before at two locations in Galhyeon-dong, Gwacheon-si, Gyeonggi Province?'Gwacheon Prugio Lavieno' and 'Gwacheon Prugio Bellarte'?drew 8,605 applicants for 8 units. This translates to an average competition ratio of 1,075 to 1.

Gwacheon Prugio Bellarte recorded an average competition ratio of 1,364.66 to 1, with 4,094 applicants for 3 units. Gwacheon Prugio Lavieno also saw strong interest, with 4,511 applicants for 5 units, averaging a competition ratio of 902.1 to 1. The highest competition ratio was for the 84㎡A unit type at Gwacheon Prugio Bellarte, which had 1,430 applicants for a single unit, resulting in a 1,430 to 1 ratio. Most other unit types also recorded four-digit competition ratios.

These units were released after the Gyeonggi Province Special Judicial Police uncovered fraudulent subscriptions and canceled contracts. Since the sale prices have not significantly changed from those two years ago, there was considerable anticipation among subscription waiters even before the application period. The sale price for Gwacheon Prugio Lavieno was set at up to 799.93 million KRW for the 84㎡ units and 916.62 million KRW for the 99㎡ units. For Gwacheon Prugio Bellarte, the highest price for the 84㎡ units was 803.38 million KRW.

Meanwhile, nearby apartment prices have surged significantly over the past two years, allowing winners to enjoy price gains close to 1 billion KRW. For example, the 84㎡ unit at Gwacheon Xi in the area was traded for 2.05 billion KRW in July, and the 84㎡ unit at Gwacheon Prugio Summit was sold for 2.1 billion KRW in June. Although real estate prices have recently declined, the 84㎡ unit at Raemian Sure, built in 2008 nearby, has a minimum asking price of 1.45 billion KRW, indicating expected price gains of over 600 million KRW even with conservative estimates.

Additionally, the standard unit size (84㎡) allows for interim payment loans, and since the announcement dates differ, multiple applications are possible. Gwacheon is effectively considered part of Seoul, and the planned Line 4 Gwacheon Information Town Station nearby also contributed to the surge in subscription applications. An industry insider commented, "As the subscription market cools, complexes with good locations or high expected price gains will continue to attract strong demand."