'Yangjeong Xi The Sharp SK VIEW', Average Competition Rate 58.88:1
Busan Fully Removed from Adjustment Area Since 26th Last Month
Lower Sale Price Compared to Market Price Also Contributes... Highest 160.03:1
[Asia Economy Reporter Hwang Seoyul] More than 30,000 people flocked to the first apartment complex to enter the subscription market in Busan after the deregulation of the regulated area, recording an average competition rate of 59 to 1. The relatively low sale price compared to the market price is also analyzed as one of the reasons for the high demand.
According to Subscription Home on the 13th, 31,793 people applied for the first priority subscription for 540 general supply units of ‘Yangjeong Xi The Sharp SK VIEW’ being built in Jin-gu, Busan, closing the subscription at the first priority stage. The average competition rate recorded was 58.88 to 1.
The industry had already expected high demand from the moment news of the planned sale of the complex was heard. This is because it is the first sale complex conducted after Busan was removed from the regulated area. On the 22nd of last month, the Ministry of Land, Infrastructure and Transport’s Housing Policy Deliberation Committee fully lifted the adjustment target areas in metropolitan cities and provinces considering the decline in housing prices, interest rate hikes, and an increase in unsold units. As a result, from the 26th, areas in Busan including Haeundae, Suyeong, Dongnae, Nam, Yeonje, Seo, Dong, Yeongdo, Busanjin, Geumjeong, Buk, Gangseo, Sasang, and Saha districts were removed from the adjustment target areas.
In fact, comparing the competition rates before and after the deregulation shows a clear difference. According to data requested from Real Estate R114, the general supply competition rate from January this year until before the 26th of last month was 34.4 to 1, which is lower than the average competition rate of 58.88 for ‘Yangjeong Xi The Sharp SK VIEW’. For exclusive area 84.93㎡A, the competition rate was 160.03 to 1, and for 84.93㎡, it was 156.86 to 1, showing triple-digit competition rates.
After deregulation of the adjustment target area, the subscription account membership period requirement for first priority is reduced from the existing 2 years to 6 months, and multi-homeowners and household members are also given first priority subscription eligibility. The re-winning restriction requirement is also removed.
The relatively low sale price compared to the market price is also analyzed as a factor contributing to the high competition rate. The highest floor of the 84.93㎡A housing type is priced at 687.2 million KRW. The nearby newly built complex ‘Yeonsan Lotte Castle Gold Foret’, completed in July 2020, had similar mid-floor units traded last month at 760 million KRW. Another nearby apartment ‘Yeonsan The Sharp’, completed in 2019, has a market price of about 810 million KRW for similar area units according to KB Real Estate.
Meanwhile, in Busan this month and November, sales are scheduled for five complexes including ‘e-Pyeonhansesang Beomil’ in Beomil-dong, Dong-gu, and ‘Eco Delta Jungheung S-Class’ in Gangdong-dong, Gangseo-gu.
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