'6 Billion Won Capital Gain' Gwacheon Jupjup... "Need to Check Re-winning Restrictions"

Gwacheon Jisik Information Town Non-Qualified Subscription
3 Contract Cancellations... 4-Year-Old Sale Price
Restrictions on Gwacheon Residents and Special Supply Conditions

In Gwacheon, Gyeonggi Province, three so-called 'lottery subscription' units are being offered at prices from four years ago. With an expected profit of about 600 million KRW compared to the surrounding market prices, there is significant interest from buyers. However, only residents of Gwacheon can apply, and there are restrictions such as a 10-year ban on re-winning, so caution is required.

Aerial View of Gwacheon Le Scento Desiang / Image Courtesy of Daewoo E&C

According to the Korea Real Estate Agency's subscription website on the 21st, 'Gwacheon Prugio Lavieno' and 'Gwacheon Lesento Desiang' in Gwacheon Knowledge Information Town (hereafter designated town) will accept non-priority subscriptions on the 23rd and 24th. Prugio Lavieno will release one unit each for newlywed special supply and general supply, and Lesento Desiang will release one unit for first-time homebuyer special supply. All are the highly preferred exclusive area of 84㎡ type.

This non-priority subscription targets units canceled due to reasons such as fraudulent subscriptions. The sale price is set at the level of October 2020. Including expenses incurred during acquisition and resupply of the units (interest, management fees, etc.), the supply price ranges from 786 million to 807 million KRW. Compared to the Gwacheon Centreville Asterium 84㎡ unit in the same building (Galhyeon-dong), which was traded for 1.495 billion KRW on the 2nd of this month, a price difference of about 600 to 700 million KRW is expected.

Since it is a non-priority subscription, a subscription savings account is not required. However, as of the resident recruitment announcement date (the 18th), applicants must be members of a household without a home residing in Gwacheon City. Also, since the price ceiling system applies, winners cannot reapply for 10 years. The resale restriction applies for 3 years from the initial occupant selection date. Although it is a non-priority subscription, it cannot be approached with an 'apply first and see' attitude.

To apply for special supply units, separate eligibility requirements must be met. Newlywed special supply requires a household married within 7 years, and the combined monthly income of the couple must be below 140% of the average monthly income of urban workers per household (160% for dual-income households). The income criterion for first-time homebuyer special supply is 160% or less regardless of dual-income status. Both special supplies require assets below 331 million KRW in real estate.

Despite these restrictions, Gwacheon is expected to see fierce competition for subscriptions due to its location, often called 'quasi-Gangnam.' Recently, due to rising construction costs, sale prices have also increased, attracting demand for well-located Seoul and metropolitan area non-priority subscriptions. For example, the 'Gam-il Prugio Markber' in Gam-il District, Hanam City, which recently held a non-priority subscription for two 84㎡ units, attracted as many as 577,500 applicants. Unlike Gwacheon designated town’s non-priority subscription, there were no residency requirements. This complex is expected to see a price difference of over 300 million KRW compared to the initial 2020 sale price (550 to 570 million KRW range).

Meanwhile, Gwacheon designated town is a large-scale public land development district created by lifting the development restriction zone around Galhyeon and Munwon-dong in Gwacheon City. It is located between Government Complex Gwacheon Station and Indeogwon Station on Subway Line 4, and the construction of the new Gwacheon Knowledge Information Town Station (tentative name) is underway, aiming for completion in 2026. These complexes attracted attention as half-price lottery apartments at initial sale and recorded triple-digit high subscription competition rates. However, there were also many fraudulent applicants through false residence registrations. Subsequently, units canceled due to court rulings against fraudulent applicants have been gradually released as non-priority subscriptions.

A representative from Daewoo Construction said, "Gwacheon designated town is a public sale site with low prices, and the subscription market was overheated at the time. There are still ongoing lawsuits related to fraudulent subscriptions. Many cases do not end at the first trial and proceed further, causing a time lag in the release of units."