"'Lotto Subscription' Is a Must... Over Half of Seoul Subscription Applicants Are in Their 20s and 30s"

Effect of Subscription Reform Including Expansion of Special Supply and Lottery System
Half of Winners Are 30 or Younger
Decrease Compared to Last Year Due to Rapid Increase in Sale Prices

More than half of the applicants for housing subscription in Seoul this year were in their 20s and 30s. This is analyzed to be the result of reforms in the subscription system, such as the expansion of special supply and lottery systems, which have increased the chances of winning for the younger generation.

According to the 'Status of Subscription Applicants by Region and Age' data from the Korea Real Estate Board on the 29th, the number of housing subscription applicants in Seoul from January to September this year was 632,282. Among them, those aged 30 and under numbered 336,848, accounting for 53% of Seoul applicants, the largest proportion among all age groups. Those in their 40s followed with 30% (188,139 people), then those in their 50s with 11% (71,806 people), and those aged 60 and above with 6% (35,489 people).

The recent reform of the subscription system significantly lowered the threshold for young people to win. Since April last year, in non-regulated areas excluding the Gangnam 3 districts (Gangnam, Seocho, Songpa) and Yongsan district, 60% of units with a floor area of 85㎡ or less and 100% of units exceeding 85㎡ are selected by lottery. In regulated areas, 60% of units 60㎡ or less, 30% of units over 60㎡ up to 85㎡, and 20% of units over 85㎡ are allocated for lottery selection. With the expansion of lottery quotas, the chances of winning for young one- or two-person households with low subscription scores generally increase.

Since March, a special supply for newborns has also been introduced. Currently, special supply quotas for first-time homebuyers, newlyweds, and newborns have increased to up to 50% of the total general supply. Yoon Soo-min, a real estate specialist at NH Nonghyup Bank, explained, "Five to ten years ago, many people in their 20s and 30s only held subscription accounts, but recently, thanks to institutional changes, the participation of the younger generation in subscriptions has noticeably increased. Especially, the expectation of a 'lottery subscription' that can yield several hundred million won in capital gains in key areas like Gangnam has heightened, leading to a significant increase in 'phantom' demand beyond actual end-users."

Among the winners of Seoul housing subscriptions, those in their 20s and 30s also accounted for about half. Of the 5,448 winners from January to September this year, 2,740 (50%) were aged 30 or younger, the largest group. Those in their 40s numbered 1,740 (32%), those in their 50s 721 (13%), and those aged 60 and above 247 (5%).

However, as apartment prices in Seoul have soared, the proportion of applicants aged 30 and under has decreased compared to last year (67%, 243,260 out of 363,054). Specialist Yoon analyzed, "For many young people buying their first home, the rising prices inevitably cause a sense of burden."