'Cantabile Suyu' 9th Non-Sequential Subscription Also Partially Undersubscribed
134 Units Offered, 359 Applicants... Competition Ratio 2.7 to 1
Seoul Gangbuk-gu Cantavil Suyu Palace, which experienced unsold units even after completion due to controversy over high sale prices, saw some unit types undersubscribed even in the 9th non-priority subscription.
According to the Korea Real Estate Board on the 11th, 359 people applied for the non-priority subscription of 134 unsold Cantavil Suyu Palace units from the previous 8 rounds of non-priority subscriptions, recording an average competition rate of 2.7 to 1.
The so-called non-priority subscription, known as 'jupjup,' refers to a lottery-based subscription process for units left unclaimed due to contract cancellations or disqualifications after the general sale winners' contract period.
This time, 134 units ranging from 18 to 78 square meters were offered through the non-priority subscription. Despite being the 9th round, some unit types still had fewer applicants than available units.
For the 19㎡A type, only 14 people applied for 15 units, and for 20㎡A and 20㎡B, which had 2 and 3 units respectively, there were no applicants, resulting in undersubscription.
The highest competition rate was recorded for the 56㎡A type, with 22 applicants for 1 unit, a 22 to 1 ratio.
For the 76㎡ type, 11 people applied for 1 unit, and for the 59㎡A type, 109 people applied for 18 units, averaging a 6.06 to 1 competition rate. The 78㎡ type had 110 applicants for 69 units.
This apartment, first offered in March last year, completed its general sale with a competition rate of 6.4 to 1, but 198 out of 216 units remained unsold, leading to 8 rounds of non-priority subscriptions.
At the initial sale, the 59㎡ units were priced between 800 million and 920 million KRW, and the 78㎡ units were priced up to 1.148 billion KRW, sparking controversy over high sale prices.
Although some unit types were discounted by 15% last year, the perception of high prices led to buyer avoidance, preventing the clearance of unsold units.
In December last year, the Korea Land and Housing Corporation (LH) purchased 36 units sized 19 to 24㎡ for rental housing purposes at prices ranging from 210 million to 260 million KRW per unit, totaling 7.9495 billion KRW.
In this non-priority subscription, the lowest sale price for the 59㎡ units dropped to 527 million KRW, about 270 million KRW cheaper than the initial lowest price of 802 million KRW.
The lowest price for the 78㎡ units also fell to 654 million KRW, down approximately 350 million KRW from the previous 1 billion KRW.
"6 out of 10 people believe house prices have not yet bottomed out"
Meanwhile, 6 out of 10 people perceive that current house prices have not yet reached the bottom.
According to a mobile survey conducted by real estate information service company Zigbang from the 15th to the 29th of last month targeting app users, 58.5% of 1,931 respondents predicted that house prices will fall further.
The most cited reason for expecting further price drops was "the price increases over the past 1-2 years have not fully declined" (24.4%).
Other reasons included ▲ overall poor economic conditions (22.7%) ▲ the impact of unsold inventory buildup and sluggish sales market (21.5%) ▲ expectations of continued interest rate hikes (19.6%) ▲ more selling activity than buying (10.1%).
On the other hand, 41.5% of respondents believed that house prices have bottomed out and will soon rise or stabilize.
Among them, 14.9% expected prices to rise soon, while 26.6% anticipated stabilization.
Those forecasting price increases most frequently cited "an increase in urgent sales and depletion of listings" (28.1%) as the reason. Among those expecting stabilization, the majority (40.1%) pointed to "a growing wait-and-see attitude due to future interest rate fluctuations."
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