"Did Deregulation Work?"... 20,000 People Flocked to Yeongdeungpo Xi First-Round Subscription

Average Competition Rate Approaching 200 to 1

About 20,000 applicants flocked to the first-priority subscription for 'Yeongdeungpo Xi Dignity,' the first apartment complex to be sold in Seoul after the relaxation of the 1·3 real estate regulations. The average competition rate nearly reached 200 to 1. The success is attributed to the relatively low prices compared to surrounding market prices and the inclusion of a significant portion of units allocated by lottery rather than the subscription point system.

Perspective view of 'Yeongdeungpo Xi Dignity' in Yangpyeong-dong, Yeongdeungpo-gu, Seoul [Photo by GS Construction]

According to the Korea Real Estate Board's subscription homepage on the 7th, the first-priority subscription for Yeongdeungpo Xi Dignity saw 19,478 applicants for 98 units, resulting in an average competition rate of 198.76 to 1.

For the exclusive area of 59㎡A, 6,424 applicants competed for 18 units, showing a competition rate of 356.89 to 1. The 59㎡B type had 4,435 applicants for 19 units, with a competition rate of 233.42 to 1, and the 59㎡C type had 1,501 applicants for 8 units, resulting in a competition rate of 187.63 to 1. The 84㎡A type recruited 17 units and attracted 3,115 applicants, with a competition rate of 183.24 to 1. The competition rates for 84㎡B and 84㎡C were 107.67 to 1 and 114.72 to 1, respectively.

The influx of applicants to Yeongdeungpo Xi Dignity is analyzed to be due to the sale prices being lower than the surrounding market prices. The average price per 3.3㎡ was 34.11 million KRW, with the 59㎡ units priced around 860 million KRW and the 84㎡ units around 1.17 billion KRW. Compared to nearby apartment market prices, this is about 100 million KRW lower. Although Yeongdeungpo-gu is not subject to the price ceiling system, the association maintained the prices set under the ceiling system applied at the end of last year.

Another factor behind the success was the inclusion of a significant number of units allocated by lottery, regardless of subscription points. With most of Seoul being released from regulation zones under the 1·3 real estate measures, small and medium-sized apartments under 85㎡ are subject to 40% point system and 60% lottery system. In the case of Yeongdeungpo Xi Dignity, all 98 general sale units are under 84㎡, so 59 units fall under the lottery allocation. Additionally, the resale restriction period was reduced to one year.

Meanwhile, Yeongdeungpo Xi Dignity attracted attention from subscription waiters as the first apartment complex to be sold in Seoul after all regulation zones except for the Gangnam 3 districts and Yongsan were lifted. In the special supply subscription held the day before for newlyweds and others, 4,995 applicants competed for 87 units, recording an average competition rate of 57.41 to 1.