'Year-end's Biggest Sale' Dunchon Jugong Also... Competition Rate Only 3.7 to 1

On the 30th, marking the seventh consecutive day of the Cargo Solidarity general strike, the supply disruption of construction materials caused the suspension of ready-mixed concrete pouring at the Dunchon Jugong Apartment reconstruction site in Gangdong-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Hyemin] Olympic Park Foreon in Gangdong-gu, Seoul (Dunchon Jugong Reconstruction), regarded as the biggest property in the year-end housing market, recorded only a single-digit competition rate in the first-priority general supply subscription. It appears to have received a disappointing result due to the combination of higher-than-expected sale prices and a subscription freeze.

According to the Korea Real Estate Board's 'Subscription Home' on the 6th, the first-priority general supply subscription for Olympic Park Foreon held that day saw 13,647 applicants for 3,695 units, recording an average competition rate of 3.69 to 1. The total general supply volume, including special supply, is 4,786 units with exclusive areas ranging from 29 to 84㎡. Following the special supply subscription, which recorded an average competition rate of 3.3 to 1 for small-sized units (29?49㎡) the previous day, the general supply competition rate showed a similar performance.

There were no housing types with fewer applicants than the number of units available. However, except for the 29㎡ units with only 5 units supplied, all competition rates remained in the single digits. The 84㎡E type, which faced controversy over the 'kitchen view' due to facing the kitchen window of the neighboring unit, recorded a low competition rate of 2.69 to 1 with 1,512 applicants for 563 units.

Typically, subscriptions must fill 500% of the number of prospective residents per housing type, but among the 16 housing types, only 5 completed this in the first-priority subscription for the relevant area. The remaining 11 housing types will accept first-priority subscriptions from other areas on the 7th.

The low competition rate for Olympic Park Foreon's general supply, which attracted attention as the largest scale since the founding of Korea, is interpreted as the high interest rate period and the sale price of 38.29 million KRW per 3.3㎡ being burdensome to subscription applicants. The sale price of the 59㎡ unit is in the 1 billion KRW range, and the 84㎡ unit, which is the standard size, exceeds 1.2 billion KRW, making interim payment loans impossible, which also had an impact.

The market had anticipated the possibility of low contract rates even with double-digit competition rates, but with the competition rate falling to single digits, the possibility of unsold units cannot be ruled out. The announcement of winners is scheduled for the 15th, and contracts will be conducted from the 3rd to the 17th of next month.