1st Place 'Pangyo Techno Valley Junheung S-Class', 1110 to 1
2nd Place 'Dongtan Station Daebang Elyium The Signature', 627 to 1
3rd Place 'Raemian One Pentas', 527.3 to 1
This year, apartment complexes subject to the price ceiling system (Bunsangje) showed high subscription competition rates. Amid the ongoing trend of rising prices, demand concentrated on complexes where capital gains are clearly guaranteed.
According to real estate platform Zigbang on the 16th, the complex with the highest subscription competition rate from January to this month was ‘Pangyo Technovalley Joongheung S-Class’ located in Geumto-dong, Sujeong-gu, Seongnam-si, Gyeonggi Province. During the subscription in July, 28,869 applications were received for 26 units, recording an average first-priority competition rate of 1,110 to 1. This complex was subject to the price ceiling system. The sale price for an exclusive area of 84㎡ was set between 796 million and 862 million KRW, about 300 million KRW cheaper than newly built apartments in the nearby Seongnam Godeung district. Located in Pangyo, one of the representative business districts in the metropolitan area, the proximity to workplaces also seemed to boost the subscription competition rate.
Perspective view of 'Pangyo Technovalley Jungheung S-Class' in Geumto-dong, Sujeong-gu, Seongnam-si, Gyeonggi Province. Photo by Jungheung Construction
The second highest subscription competition rate was also held by a complex subject to the price ceiling system. ‘Dongtan Station Daebang Elyum The Signature’ located in Dongtan 2 New Town, Hwaseong-si, Gyeonggi Province, received 116,621 applications for 186 units (excluding special supply) in July, achieving an average competition rate of 627 to 1 and closing the first priority subscription successfully. The sale price for an exclusive area of 82㎡ was set between 594.23 million and 682.37 million KRW. Considering that the exclusive 84㎡ unit of the nearby ‘Dongtan Station Bando Ubora Ivy Park 50’ was traded at 985 million KRW in June, it was evaluated that a capital gain of up to 400 million KRW could be made. Additionally, the accessibility to the metropolitan wide-area express railway (GTX) Dongtan Station was also cited as an advantage.
Ranking third was ‘Raemian Onepentas’ in Banpo-dong, Seocho-gu, Seoul, which is also a complex subject to the price ceiling system. With 93,864 applications for 178 units, it recorded an average competition rate of 527.3 to 1. There were even three ‘perfect score accounts’ with a subscription score of 84 points. Despite being priced at an average of 67.36 million KRW per 3.3㎡ (pyeong), the highest among price ceiling system apartments at the time, forecasts suggested capital gains of around 2 billion KRW. The sale price for an exclusive 84㎡ unit was up to 2.33 billion KRW, while a similar unit in the nearby newly built complex ‘Raemian One Bailey’ recently traded for 5 billion KRW.
The 5th place ‘Maple Xi’ is also located in a price ceiling system area (Jamwon-dong, Seocho-gu, Seoul). In the first priority subscription held in February, 35,828 applicants applied for 81 units, resulting in an average competition rate of 442 to 1. It was sold at 67.05 million KRW per 3.3㎡, with prices ranging from 1.733 billion to 1.742 billion KRW for an exclusive 59㎡ unit, which was more than 700 million KRW cheaper compared to actual transaction prices of similar units in nearby ‘Sinbanpo Xi’ and ‘Banpo Riche’ complexes.
According to Real Estate R114, among the 660,619 first-priority applicants in the metropolitan area from January to August this year, 78.4% (518,279 people) applied for apartments subject to the price ceiling system.
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