'4 Billion Won Cheaper Than Market Price' First Special Supply for Newborns Sees Competition Rate of 61.7 to 1

Application of Price Ceiling System for Sale Complexes
3 to 4 Billion KRW Cheaper Compared to Market Price, Attracting Many Applicants

The competition rate for the 'Newborn Special Supply' in a public sale apartment complex, conducted for the first time since the subscription system reform, recorded 61.7 to 1. According to Korea Land and Housing Corporation (LH) on the 24th, 679 applicants applied for the special supply subscription at Seongnam Sinchon A2 Block (Elif Seongnam Sinchon) the previous day.

For the multi-child special supply, 176 people applied for 6 units; for the first-time homebuyer special supply, 540 people applied for 8 units; and for the newlywed special supply, 950 people applied for 6 units. Accordingly, the average competition rate for the special supply was 55.7 to 1. This complex is the first apartment to conduct the newborn special supply, which was established on the 25th of last month.

Following the subscription system reform, a newborn special supply was newly created for public sales targeting households with children born within 2 years as of the announcement date of the resident recruitment (including pregnancy and adoption). In private sales, 20% of the first-time homebuyer and newlywed special supply quotas are preferentially allocated to households with children born within 2 years. The child criteria for the multi-child special supply were also relaxed from 3 or more children to 2 or more children.

Seongnam Sinchon A2 Block (Elif Seongnam Sinchon) is an apartment subject to the price ceiling system. The sale price is about 300 million to 400 million KRW cheaper than the market price, which seems to have attracted many applicants for the newborn special supply. The sale price for a 59㎡ exclusive area is between 691.1 million and 788.7 million KRW. A similar-sized unit in the nearby Gangnam LH1 complex was traded for 1.19 billion KRW in January.

Among the 262 winners of the pre-subscription for this complex, 173 participated in the main subscription. It appears that some dropped out due to the sale price rising by up to about 100 million KRW compared to the estimated price at the time of pre-subscription. Accordingly, the general supply quantity conducted on this day increased to 104 units, adding the remaining 89 units from the pre-subscription to the originally allocated 15 units.