‘Bunsangje’ Complex Popular... Average Subscription Competition Rate 17 to 1

In recent years, apartment prices have soared, and with the average pre-sale price of newly built apartments exceeding 20 million KRW per 3.3㎡, buyers are flocking to price-capped pre-sale complexes that are relatively more affordable. Despite the real estate market showing signs of stagnation in the first half of this year, the average subscription competition rate for price-capped pre-sale complexes nationwide reached about 17 to 1.

According to data from the Korea Real Estate Board's Subscription Home on the 13th, a total of 21 price-capped pre-sale complexes with 9,884 units (excluding special supply) were offered nationwide in the first half of this year, receiving 167,690 subscription applications. The average competition rate was 16.97 to 1. This figure is more than twice the average competition rate of 8.18 to 1 for all complexes offered nationwide during the same period.

The average subscription competition rate for housing units subject to the price ceiling system nationwide in the first half of this year recorded 16.97 to 1. The photo shows a perspective view of Hillsstate Cheomdan Central, a complex subject to the price ceiling system, which is scheduled for sale this month.
[Photo by Hyundai Engineering]

For example, in June, the price-capped pre-sale complex ‘Unjeong Xi Signature’ in Unjeong New Town, Paju, Gyeonggi Province, recorded a competition rate of 64.31 to 1. The highest pre-sale price for an 84㎡ unit in this complex was 561 million KRW, which is more than 100 million KRW cheaper compared to the nearby ‘Sannae Village 10 Complex Unjeon Prugio’ 84㎡ unit that was traded for 705 million KRW last month.

The ‘Shinyoung Jiwel Prugio Technopolis Central’ in Cheongju, Chungbuk, also attracted attention as a price-capped pre-sale complex, drawing 34,886 applicants for 473 units (excluding special supply), resulting in an average subscription competition rate of 73.75 to 1.

Other complexes subject to the price cap, such as ‘Harrington Place Technopolis (57.59 to 1)’, ‘Hoban Summit Incheon Geomdan (34.85 to 1)’, and ‘Changwon Lotte Castle Forest 1 & 2 Complex (28.36 to 1)’, all showed excellent double-digit competition rates.

A real estate expert said, “Due to rising construction and labor costs, the pre-sale prices of new apartments have been increasing annually, and the relatively lower burden of price-capped pre-sale complexes has caused demand to concentrate there amid the high interest rates continuing since last year.”

Moreover, starting next year, the mandatory certification of ‘Zero Energy Buildings’ for private apartments with 30 or more units, including pre-sale and lease-sale apartments, is expected to cause additional increases in pre-sale prices, prompting more active movements among real buyers planning to purchase homes.

Zero Energy Building refers to a construction method that enhances insulation performance and the use of renewable energy in apartment buildings to achieve carbon neutrality. The industry expects construction costs to increase by up to 30%.

Meanwhile, price-capped pre-sale projects are scheduled to be launched this month.

First, Hyundai Engineering plans to pre-sell ‘Hillstate Cheomdan Central’ in Block A1 of the Gwangju Research and Development Special Zone Advanced 3 District in August. It will be the first apartment complex supplied in the Advanced 3 District, consisting of 20 buildings from basement level 1 to 20 floors above ground, with a total of 1,520 units all sized 84㎡.

Lotte Construction will launch the pre-sale of ‘Geomdan New Town Lotte Castle Nextiel’ apartments in the Next Complex, a core project of Phase 1 of Geomdan New Town, Incheon, in August. The complex will have 4 buildings ranging from basement level 2 to a maximum of 29 floors above ground, with units sized 84㎡ and 108㎡, totaling 372 units.

All these complexes will be subject to the price cap system, so reasonable pre-sale prices compared to surrounding market prices are expected. Both homeowners and non-homeowners, including household heads and members, can apply in the first priority subscription. There are no residency restrictions, so anyone nationwide can apply.