- Deepening Polarization in the Housing Market, Demand Concentrated in Specific Areas Even Within Regions
- Doan New Town Chosen by 9 out of 10 Daejeon Applicants This Year, High Residential Preference
As the polarization of the housing sales market intensifies nationwide, demand is concentrating on specific complexes even within local areas. This is interpreted as an increasing number of people trying to place a ‘safe subscription’ in places where value has already been proven amid market uncertainties.
The temperature difference between the metropolitan area and local regions in the housing sales market is revealed in subscription competition rates. According to real estate R114 data on the 8th, the average first-priority competition rate for apartments in the metropolitan area from January to October this year was 21.79 to 1, whereas in local areas excluding the metropolitan area, it was only 6.24 to 1. Among the metropolitan areas, the first-priority competition rate for apartments sold in Seoul reached an average of 155.12 to 1.
Meanwhile, in local areas, sales performance varies greatly depending on the region. ‘Ssangyong The Platinum Nature,’ sold in the Eumnae-dong area of Daedeok-gu, Daejeon in July, despite its rarity as a newly built apartment complex close to an industrial complex and near old apartments, failed to meet subscription targets with only 110 applicants combined for first and second priority for 293 units (excluding special supply).
On the other hand, ‘Doan Prugio Diadel,’ sold in the Yonggye-dong area of Yuseong-gu, Daejeon in August, attracted 23,609 subscription accounts for 798 units (excluding special supply), closing first priority with an average competition rate of 29.59 to 1. Similarly, ‘Hillstate Doan River Park’ complexes 1 and 2, sold in Hakha-dong, Yuseong-gu, Daejeon in July, received a total of 7,070 applications for 1,548 units (excluding special supply) in first and second priority, recording an average competition rate of 4.57 to 1. Compared to the total number of applicants (1,196) for ‘Hillstate Gajang The First,’ sold just two months earlier in Gajang-dong, Seo-gu, Daejeon, about six times more subscription accounts were gathered.
The main reason for the differing subscription results among complexes in Daejeon is considered to be location. Both complexes with good results are located in Doan New Town, which has excellent infrastructure and a concentration of newly built complexes, making it a highly preferred residential area even within Daejeon.
In fact, according to real estate R114 data on the 12th, a total of 12 complexes were sold in Daejeon this year, with a total of 34,648 first-priority subscription accounts received. Of these, 29,865 accounts, accounting for 86.2%, were concentrated in two complexes sold in Doan New Town. In other words, nine out of ten applicants in Daejeon subscribed in Doan New Town.
Meanwhile, Hyundai Engineering & Construction is attracting attention by presenting a large complex once again in Doan New Town. On the 8th (Friday), Hyundai Engineering & Construction opened the model house for ‘Hillstate Doan River Park’ Phase 2 in Doan 2-2 District, Yuseong-gu, Daejeon, and began full-scale sales. This complex consists of Phase 3 (1,639 units) and Phase 5 (443 units), with 1,616 units for general sale excluding rental units: 1,223 units in Phase 3 and 393 units in Phase 5.
Doan New Town is expected to accommodate about 58,000 households and 160,000 people once development is completed, making it a highly anticipated area. In particular, Hillstate Doan River Park Phase 2 is expected to become a landmark with both symbolic and rare value as the largest branded town in Daejeon, located in a high-end residential belt formed along Jinjamcheon Stream within Doan New Town. A waterside park is planned adjacent to the complex, providing an optimal residential environment accessible from downtown Daejeon.
The sale price of the complex is set between KRW 636.5 million and KRW 751.7 million for exclusive area 84㎡ units (excluding open balcony units), which is about KRW 200 million or more lower than the actual transaction price of KRW 900 million for the same area in the nearby ‘Daejeon I-Park City 2 Complex’ (moved in October 2021, based on Ministry of Land, Infrastructure and Transport transaction data from October this year). Residents who have continuously lived in Daejeon for more than one year are eligible for first-priority local subscription, while those who have lived less than one year in Daejeon and residents of Sejong City and Chungcheongnam-do are eligible for first-priority other area subscription. There are no restrictions on re-winning or mandatory residence periods, and the resale restriction period is six months from the announcement date of winners.
The subscription schedule starts with special supply on November 18 (Monday), followed by first priority on the 19th (Tuesday), and second priority on the 20th (Wednesday). The announcement of winners is scheduled for November 26 (Tuesday) for Phase 5 and November 27 (Wednesday) for Phase 3, with official contracts conducted over five days from December 8 (Sunday) to December 12 (Thursday). Further details can be found on the official website of Hillstate Doan River Park Phase 2.
Meanwhile, the model house for ‘Hillstate Doan River Park’ Phase 2 is located near Mokwon University in Doan-dong, Seo-gu, Daejeon.
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