Minister of Land, Infrastructure and Transport on "Reforming Unranked Subscription", "Maintaining Nationwide Housing Price Stability" [2024 National Audit]

2024 National Assembly Land, Infrastructure and Transport Committee Audit
Minister of Land, Park Sang-woo
"Reorganizing Non-Priority Subscription Considering Housing Status, Residence, and Subscription Overheated Areas"

Minister of Land, Infrastructure and Transport Park Sang-woo is speaking at the 2024 National Assembly Land, Infrastructure and Transport Committee audit held at the Government Sejong Complex on the 7th.
[Photo by Yonhap News]

On the 7th, Park Sang-woo, Minister of Land, Infrastructure and Transport, stated at the Ministry of Land, Infrastructure and Transport’s national audit held at the Government Sejong Complex that they are "reviewing several comprehensive alternatives considering factors such as whether applicants are homeless, their place of residence, and whether the application area is overheated" regarding the 무순위 청약 (non-priority subscription) system that caused the crash of the subscription platform operated by the Korea Real Estate Board.

The 무순위 청약 system allows applications for leftover units resulting from under-subscription or contract cancellations in the first and second priority subscription rounds. Recently, with millions of applicants flocking to the system, the original purpose of resolving unsold housing has been distorted, prompting the government to initiate reforms of the system.

Since early last year, when eligibility requirements were relaxed to allow anyone to apply regardless of residence or number of homes owned, the 무순위 청약 system has shown signs of overheating. During the rapid housing price surge in 2021, the government restricted eligibility to "homeless residents of the relevant area," but from the second half of 2022, due to an increase in unsold units, the restrictions were lifted to allow anyone to apply.

This year, as the housing market in the metropolitan area revived, the 무순위 청약 fever intensified. In February, 1,013,456 people applied for three units ranging from 34 to 132㎡ at "The H Firstier I-Park" in Gangnam-gu, Seoul, and in July, 2,944,780 people applied for one 84㎡ unit at "Dongtan Station Lotte Castle" in Hwaseong, Gyeonggi Province, causing the subscription platform to crash. This incident amplified calls for reform of the 무순위 청약 system.

Minister Park also stated that "illegal or unfair loans or false real estate transaction reports in the real estate market will continue to be strictly monitored."

Meanwhile, when People Power Party lawmaker Yoon Young-seok pointed out the recent trend of rising housing prices, Minister Park responded, "Looking nationwide, housing prices have stabilized considerably, and there are many regions where prices are actually falling," adding, "The nationwide stability in housing prices is expected to continue." He further noted, "The rise in housing prices in Seoul and the metropolitan area has slowed since the '8·8 Supply Plan' and the '8·20 Demand Management Plan,' and nationwide housing price stability will be maintained."

Regarding Yoon’s criticism that "the widening gap between housing prices in the metropolitan area and other regions is a bigger problem, and the government has not presented appropriate measures," Minister Park replied, "The most important thing is to increase new supply in preferred areas of Seoul," and added, "We have submitted related bills to the National Assembly to activate new housing supply through redevelopment and reconstruction."

On policy loans such as the newborn special loan, which are cited as factors driving housing price increases, Minister Park said, "I believe loans like the first-time homebuyer loan or the newborn special loan are loans aimed at achieving important policy goals," and added, "We will manage them but intend to maintain their eligibility."