Dunchon Jugong Special Supply Average 3.3 to 1... Some Shortfalls Including Newlyweds' 39㎡ Units

The site of Dunchon Jugong Reconstruction (Olympic Park Foreon) in Gangdong-gu, Seoul. / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Noh Kyung-jo] Even the largest reconstruction project since the era of Dangun was not immune to the real estate market downturn. The special supply for newlyweds and first-time homebuyers at the Dunchon Jugong Reconstruction in Gangdong-gu, Seoul (Olympic Park Foreon) fell short in some categories.

According to the Korea Real Estate Board's subscription website on the 5th, the special supply for Olympic Park Foreon (1,091 households) attracted a total of 3,580 applicants, recording an average competition rate of 3.3 to 1. By exclusive area, ▲29㎡ 5 units ▲39㎡ 609 units ▲49㎡ 477 units were supplied.

For the first-time homebuyer category, 80 applicants applied for 1 unit of 29㎡, and 629 applicants applied for 159 units of 39㎡. For 94 units of 49㎡, 1,870 applicants competed, resulting in a competition rate of 19.9 to 1.

In the newlywed category, 13 applicants applied for 3 units of 29㎡, and 653 applicants applied for 203 units of 49㎡. In the senior parent support category, 41 applicants applied for 28 units of 49㎡. For the institution recommendation category of the same area, 125 applicants applied for 90 units.

However, some categories experienced undersubscription. For the multi-child family category, only 45 applicants applied for 62 units of 49㎡. In the 39㎡ area, the newlywed category had 90 applicants for 301 units, and the senior parent support category had 5 applicants for 34 units. Additionally, only 28 applicants applied for 115 units in the institution recommendation category, resulting in all categories except first-time homebuyers failing to fill the number of units for that area.

This undersubscription is understood to be influenced by the perception that the sale price is somewhat high at 38.29 million KRW per 3.3㎡. Kim Hyo-seon, Senior Real Estate Specialist at NH Nonghyup Bank, said, "With prices falling, there is no immediate significant merit, and the timing is definitely not good."

Olympic Park Foreon will begin special supply on this day, followed by first-priority applications for the local area and other regions on the 6th and 7th, and second-priority applications on the 8th. The announcement of winners will be on the 15th of next month, and the contract period is from January 3 to 17 of next year.