15,000 People Flock to Yoon Suk-yeol Government's First Public Sale 'New:Home' (Comprehensive)

Average Competition Rate Recorded at 11.1 to 1
Youth Special Supply Competition Rate at 36.5 to 1

[Asia Economy Reporter Cha Wanyong] The special supply competition rate for the first public sale housing under the Yoon Seok-yeol administration, ‘New:Home’, recorded an average of 11.1 to 1. The competition rate for the newly introduced special supply for unmarried youth even exceeded 50 to 1. It is interpreted as a successful hit as many homeless youth flocked due to the advantage of being 20-30% cheaper than the market price.

The Ministry of Land, Infrastructure and Transport announced on the 12th that 15,353 people applied for the special supply (1,381 households recruited) of New:Home’s first pre-sale supply sites in Goyang Changneung, Namyangju Yangjeong Station area, and Namyangju Jinjeop 2 in Gyeonggi Province.

Among the pre-sale recruitment types, the competition rate for the Nanum-type housing recorded 12.8 to 1, showing higher popularity than the general type (3.4 to 1). Last year, the government restructured the public sale subscription method into Nanum-type, Select-type, and General-type.

The Nanum-type supplies housing at 70% or less of the market price and guarantees up to 70% of the disposal profit and loss if the buyer resells the house to the public later. Loans of up to 80% of the sale price can be obtained for up to 40 years at an interest rate of 1.9-3% per annum. The General-type applies a price ceiling system, supplying at about 80% of the market price. For example, if the surrounding market price is 500 million KRW, the sale price of Nanum-type public sale housing is set at 350 million KRW or less, and in this case, a loan of up to 280 million KRW can be obtained. The buyer only needs 70 million KRW to own a home.

The newly introduced youth special supply recorded a high competition rate of 36.5 to 1. Newlyweds and first-time homebuyers recorded 7.2 to 1 and 7.8 to 1, respectively.

By supply site, Goyang Changneung (694 households) recorded a competition rate of 17.7 to 1. The youth special supply competition rate was the highest at 52.5 to 1, newlyweds at 9.7 to 1, and first-time homebuyers at 10.2 to 1. For youth, the most popular was the exclusive area of 59㎡ with an estimated sale price of 397.78 million KRW. The competition rate reached 64 to 1.

The special supply competition rate for Nanum-type Namyangju Yangjeong Station area (549 units) was 5 to 1. Youth recorded 11.3 to 1, newlyweds 3.3 to 1, and first-time homebuyers 4.1 to 1. By size, the exclusive 84㎡ with an estimated sale price of 428.31 million KRW recorded the highest competition rate of 6.7 to 1.

The General-type supply in Namyangju Jinjeop 2 (252 households) had a relatively low competition rate of 3.4 to 1. The first-time homebuyer quota recorded 5.6 to 1. By size, the exclusive 59㎡ recorded 3.9 to 1, and 55㎡ was 1.2 to 1.

Pre-sale general supply applications for the three sites including Goyang Changneung will be held from the 13th to the 17th. Winners will be announced on the 30th of next month after verifying the eligibility of subscription accounts. Afterwards, winners will be finalized after additional screening to confirm compliance with income and homelessness criteria.

The special supply application period for 500 units of Godeok 3 Complex supplied by Seoul Housing & Communities Corporation (SH) is from the 27th to the 28th. General supply applications start from the 2nd of next month.

Park Jae-soon, head of the Public Housing Promotion Division at the Ministry of Land, Infrastructure and Transport, said, "‘New:Home’, prepared to restore the housing hopes of the future generation of youth and homeless low-income citizens, received enthusiastic interest from the public in this special supply." He added, "We ask for much interest in the general supply running until the 17th and the upcoming pre-sale application for Godeok Gangil 3 Complex."