The Cantavil Suyu Palace apartment, once considered a problematic unsold property, showed a high competition rate of over 28 to 1 in the non-priority subscription. However, due to controversies over high sale prices and seven contract cancellations, there is keen interest in whether all units will be contracted in this subscription.
According to the Korea Real Estate Board's subscription homepage on the 15th, Cantavil Suyu Palace in Gangbuk-gu, Seoul, received 115 applications for 4 units across 4 different floor plans in the non-priority subscription held on the 14th. The average competition rate reached 28.71 to 1. The highest competition rate was for the 56B (exclusive area) unit, with 62 applicants for 1 unit, recording a 62 to 1 competition rate. This was the 8th time the complex held a non-priority subscription.
Starting subscription applications in February last year, the apartment initially closed with a 6.4 to 1 competition rate, but subsequent controversies over high sale prices led to repeated contract cancellations. Ultimately, about 91% of the 216 units, or 198 units, remained unsold. In June last year, to increase the contract rate, some unit prices were discounted by 15%, but undersubscription continued, leading to a total of seven non-priority subscriptions.
It has been pointed out that the repeated non-priority subscriptions are due to the persistence of 'reckless subscriptions.' According to current mandatory regulations for non-priority subscriptions, if the subscription competition rate exceeds 1 to 1, remaining units must be supplied through non-priority subscriptions regardless of whether winners cancel their contracts. Therefore, if contract cancellations continue, non-priority subscriptions must be repeated indefinitely.
In fact, Cantavil Suyu Palace included a statement on the first page of its recruitment announcement saying, "Recently, 'reckless subscriptions' have caused genuine buyers to lose their chances, resulting in unfair damage," and requested that those who do not meet eligibility criteria refrain from applying. Similarly, the Sillim Sky Apartment in Sillim-dong, Gwanak-gu, Seoul, conducted a total of 14 non-priority subscriptions last year due to repeated contract cancellations.
Nevertheless, Cantavil Suyu Palace proceeded with the non-priority subscription again without discounting prices, which is attributed to LH absorbing most of the problematic unsold units. In December last year, LH purchased 36 units with exclusive areas of 19 to 24㎡ from the unsold units of this complex to use as rental housing, sparking controversy. This was because the purchase price was similar to the initial sale price.
Regarding this, Won Hee-ryong, Minister of Land, Infrastructure and Transport, criticized, "If it were my own money, not taxes, I cannot understand if I would have bought at this price," and said, "It guarantees profits for construction companies with public funds and encourages moral hazard."
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