'Box Office Failure' Dunchon Jugong Subscription Score of 20 Points Also Won... No Perfect Score Account

'Kitchen View Controversy' 84㎡E, 35 Points Winning Cutoff
'Interim Payment Loan' Exclusive 59㎡ Average Score Higher
Lowest 20 Points~Highest 77 Points...Large Gap Observed

The scene of the Dunchon Jugong Apartment reconstruction site in Gangdong-gu, Seoul, where ready-mix concrete pouring was halted due to disruptions in the supply of construction materials caused by the Cargo Solidarity general strike entering its seventh day on the 30th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Hyemin] Olympic Park Foreon in Gangdong-gu, Seoul (Dunchon Jugong), considered the biggest property in the year-end pre-sale market, has shown poor performance even at the winning cut-off score (minimum winning points). Some housing types were won with as low as 20 points, and the housing type that sparked the 'kitchen view' controversy recorded a minimum score of 35 points. There were no perfect score winners this time either.

According to the Korea Real Estate Board's subscription homepage on the 15th, the average winning cut-off score for Olympic Park Foreon was 45.9 points. Among the 16 housing types, the minimum score ranged from 20 points to a maximum of 64 points. Seven housing types had scores lower than 44 points, which is the average winning score in Seoul from January to November this year based on Real Estate R114. The subscription score is calculated by considering the period of no home ownership, number of dependents, and subscription account duration, with a perfect score being 84 points.

The exclusive area of 49㎡ had a minimum score of 20 points. This means the entry barrier was not high enough, allowing low-score applicants to win. Out of 424 units available, 656 people applied on the first day in the first-priority local subscription, but it did not meet the reserve applicant standard (500%), so it proceeded to the second-priority other regions. The corridor-style layout was a disadvantage, and since it was a small type with two bedrooms, it was relatively less preferred. The smaller 39㎡ also had a winning cut-off score of 26 points.

The housing type that caused the so-called 'neighbor's kitchen view' controversy had a relatively low winning cut-off score. The minimum score for the 59㎡A type was 46 points, the lowest among the 59㎡ types. Among the 84㎡ types, the E type had the lowest winning cut-off score at 35 points.

The average winning cut-off score was highest for the 59㎡ units. The minimum winning score for 59㎡ was an average of 52.2 points. For the 59㎡C type, the winning cut-off score was 62 points, and the highest score was 74 points. The highest winning score overall was also from 59㎡A (77 points). The 59㎡ units were priced in the 1 billion KRW range and allowed mid-term loans, which attracted many subscription accounts. The 84㎡ units, which do not allow mid-term loans, had an average winning cut-off score of 46.7 points.

Most other housing types had winning cut-off scores in the 40 to 60 point range. Given the supply of over 4,000 units and the variety of housing types, the winning cut-off scores were lower for some types, resulting in a wide gap between the low and high scores.

Market attention is focused on the contract rate. Since the subscription competition rate was lower than expected and the subscription scores remained at average levels, there is a forecast that some winners may give up their contracts. A sales official said, "For housing types that do not allow mid-term loans or small units, buyers may hesitate to sign contracts due to falling house prices or difficulties in securing funds," adding, "Even if mid-term loans are available, the rising interest rates could be a burden."