As construction costs rise and regulations are eased, driving up sale prices, a flood of applicants is pouring into so-called “musunwi” (non-priority) subscription applications. Following the nationwide expansion of the musunwi subscription system, demand has concentrated on properties supplied at prices from 2 to 3 years ago, with buyers expecting capital gains.
According to the Korea Real Estate Board’s Subscription Home on the 6th, Pyeongtaek Jije Station Xi in Pyeongtaek-si, Gyeonggi-do, which held a musunwi subscription on the 31st of last month, attracted 57,434 applicants for 4 units, showing a high average competition rate of 14,358.5 to 1. In particular, for the 2 units of exclusive 84㎡A, 34,636 applicants applied, recording the highest competition rate of 17,318 to 1. This phenomenon is because the musunwi subscription for this complex was conducted at prices from 2 years ago, allowing winners to gain capital gains worth several hundred million won.
The sale prices by exclusive area for Pyeongtaek Jije Station Xi are ▲74㎡ (397.5 million won) ▲84㎡ (487.8 million won) ▲97㎡ (558.8 million won). The sale right for the 97㎡ unit in this complex was actually traded for 759.44 million won in April, about 200 million won higher than the sale price, raising expectations for capital gains. Moreover, the fact that musunwi subscriptions can be applied for nationwide also had an impact. The government eased sale regulations, allowing applications for musunwi subscriptions regardless of residence or home ownership.
Besides this complex, a strong concentration of demand is also seen in musunwi subscriptions conducted in the metropolitan area. Due to the reduction of areas subject to the price ceiling system and the sharp rise in construction costs, apartment sale prices in the metropolitan area have surged by more than 10% compared to the previous year. However, many musunwi subscriptions are supplied at prices from 2 to 3 years ago, offering significant price advantages.
On the 30th of last month, the first musunwi subscription for Geumgang Pentarium 6th Central Park in Dongtan New Town attracted 4,529 applicants for 7 units of exclusive 84㎡, recording an average competition rate of 647 to 1. The sale prices ranged from 455 million to 464.8 million won, about 70 to 80 million won lower than nearby complexes.
On the same day, the musunwi subscription for Raemian Elinity in Dongdaemun-gu, Seoul, also recorded a high competition rate. The canceled contract houses were 2 special supply units (1 institution recommendation, 1 newlywed couple). Despite the strict conditions, 2 units attracted 2,900 applicants, with an average competition rate of 1,450 to 1. This complex was supplied 3 years ago at prices of 805 million to 822 million won for exclusive 74㎡ units. In March, the same size units were actually traded for about 1.1 billion won, expecting capital gains of around 300 million won.
Park Jimin, head of the Monthly Subscription Research Institute, said, “It is natural that subscription demand has concentrated on complexes supplied at prices from 2 to 3 years ago, which are about 100 to 200 million won lower than surrounding market prices.” He added, “As sale prices continue to rise steadily, the concentration of subscription demand considering sale prices and location is expected to continue for the time being.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
