Apartment complex viewed from Lotte World Tower Seoul Sky in Songpa-gu, Seoul (Photo by Yonhap News)
[Asia Economy Reporter Ryu Tae-min] In December last year, the nationwide first-priority apartment subscription shortfall rate exceeded half. While competition was fierce in metropolitan areas such as Seoul and Busan, the polarization deepened with numerous shortfalls mainly in provincial areas, leading to a significant drop in subscription competition rates.
According to real estate platform company Zigbang on the 8th, the nationwide first-priority subscription shortfall rate in December 2022 was 53.9%. This means that more than half of the complexes had first-priority subscription shortfalls, nearly doubling compared to the same month last year (28.2%).
By region, the shortfall rate was prominent in provincial areas. Jeju Island and Jeonnam recorded 100%, with all complexes experiencing first-priority subscription shortfalls, the highest rates. This was followed by Daejeon (89.2%), Chungnam (83.2%), and Chungbuk (81.8%). In the metropolitan area, Incheon showed a high rate of 81.8%.
On the other hand, in densely populated metropolitan cities, the subscription shortfall rate was low. Seoul and Busan recorded 0%, the lowest rates. In the metropolitan area, Gyeonggi Province recorded 17.3%, the next lowest.
According to Zigbang, the average nationwide first-priority subscription competition rate in December last year was 1.9 to 1. This is about one-eighth of the 15.2 to 1 recorded in the same month the previous year.
Similarly, subscription competition rates in provincial areas were low. Several regions such as Daejeon (0.1 to 1), Ulsan (0.3 to 1), Chungbuk (0.2 to 1), and Gyeongbuk (0.2 to 1) showed competition rates below 1 to 1. Sejong City, where housing prices have been sharply falling, recorded 0.9 to 1, also below 1 to 1. In the metropolitan area, Incheon recorded a low figure of 0.3 to 1.
Conversely, competition rates were high in metropolitan areas. Busan recorded the highest at 53.8 to 1, followed by Seoul at 42.5 to 1. In the metropolitan area, Gyeonggi recorded 1.5 to 1.
In fact, in Busan, only one complex, 'Namcheon Xi' in Namcheon-dong, Suyeong-gu, was sold, recording a competition rate of 53.8 to 1. 'Namcheon Xi' successfully closed first-priority subscriptions for all types with 3,065 applicants for 57 households.
In Seoul, 'Gangdong Heritage Xi' in Gil-dong, Gangdong-gu, recorded a competition rate of 54 to 1 with 5,723 applicants for 106 households. The highest winning score was 74 points, and the lowest was 64 points. 'Mapo The Classy,' supplied in Ahyeon-dong, Mapo-gu, also recorded a competition rate of 19.4 to 1 with 1,028 applicants for 53 households.
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