As skepticism over the usefulness of subscription savings accounts grows, the pace at which people are leaving these accounts is accelerating. Real estate end-users are now focusing on non-priority subscriptions, known as 'Jupjup', which allow applications without a subscription account.
According to Korea Real Estate Board's Cheongyak Home, the number of subscribers with 4 years or more but less than 5 years in the Comprehensive Housing Subscription Savings account has been decreasing for three consecutive years, reaching a total of 2,009,500 as of the end of June this year. This is a decrease of 7.6% (about 165,000 people) compared to the same period last year. During the same period, the number of subscribers with more than 6 months but less than 1 year of subscription dropped by 9.2% (114,000 people).
The factors behind the departure from subscription accounts include the June 2024 pre-sale prices, intensified subscription competition, rising pre-sale prices, and stricter loan regulations. As pre-sale prices soar and competition intensifies, subscribers with short-term accounts, who have little real chance of winning, are canceling their accounts or reluctant to open new ones.
As doubts about the value of subscription accounts grow, attention is shifting to non-priority subscriptions that do not require a subscription account. Anyone can apply regardless of subscription account duration or place of residence, and winners are selected by lottery rather than a point system. This increases the chances for groups with low scores, such as young people or newlyweds, to win a unit.
According to Korea Real Estate Board's Cheongyak Home, in July last year, the 'Dongtan Station Lotte Castle' in Hwaseong, Gyeonggi Province, attracted significant attention when 2,944,780 people applied for a single 84m2 unit in a non-priority subscription round.
According to Korea Land and Housing Corporation (LH), in June this year, more than 138,000 people applied for a single 55m2 unit in the 'Gwacheon Grand Reve Desiang' non-priority subscription in Gwacheon, Gyeonggi Province, causing the website to crash.
In Gwangju, Gyeonggi Province, 'Harrington Square River Park' is drawing attention as it is set to open non-priority subscriptions on August 6 (Friday). This complex, the first 39-story building in Gwangju, is expected to become a new regional landmark.
Harrington Square River Park is located in the Yeok-dong area (Gyeongan 2 District Urban Development Zone, A1 Block) of Gwangju, Gyeonggi Province. The complex consists of four buildings, ranging from five basement levels to a maximum of 39 above-ground floors, offering 818 apartment units (817 for general sale) with exclusive areas from 59 to 161m2, and 72 officetel units with an exclusive area of 84m2, for a total of 890 units.
The non-priority subscription supply includes apartment units with exclusive areas of 59m2A, 84m2A, 84m2B, 84m2C, 96m2A, and penthouses. Any household member without a home who resides in Korea is eligible to apply.
The 84m2 and 94m2B apartment units are currently available for first-come, first-served contracts. These contracts also do not require a subscription account and allow buyers to choose their preferred building and unit. The complex is receiving positive feedback from end-users by offering a first contract payment of 10 million won and three free system air conditioners per unit.
Officetel units are also being offered on a first-come, first-served basis. Benefits include a first contract payment of 10 million won, 50% of the interim payment interest-free, and free system air conditioning for all units. Officetel units can also be resold after paying a 10% contract deposit.
With its maximum height of 39 stories, Harrington Square River Park is expected to create a new skyline for Gwangju. The exterior features a curtain wall look and facade design for a more luxurious appearance. All units include a dressing room, and depending on the unit type, additional pantries are provided to increase storage space.
The community facilities include a fitness center for health management, a GX room, golf practice range, sauna, reading rooms (male/female), a small library, video production room, and a group care center. There will also be two guest houses for visitors, and a sky lounge at the highest floor in Gwangju offering panoramic views.
The location is also advantageous. Residents can reach Pangyo in about 14 minutes without transfer by using Gyeonggang Line's Gyeonggi Gwangju Station nearby. As apartment purchase and rental prices in Bundang District, Seongnam, have recently soared, Harrington Square River Park is being recognized as a reasonably priced alternative to Pangyo.
Gyeonggi Gwangju Station is set to benefit from the planned GTX-D line and the upcoming Suseo-Gwangju double-track railway, which will dramatically improve accessibility to Seoul in the future.
Additionally, Harrington Square River Park is located right in front of Cheongseok Park and the Gyeongan Stream, allowing some units to enjoy permanent views of beautiful nature and providing excellent opportunities for walking and exercise. The Gyeongan Stream Eco-Cultural Waterfront Park Project (scheduled for 2027) is also underway, so residents will be able to enjoy the scenic natural environment on their way to Gyeonggi Gwangju Station.
The Harrington Square River Park model house is located at the site of the complex in Yeok-dong, Gwangju, Gyeonggi Province.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
