Gimpo and Anyang See Subscription Boom After Avoiding Regulations... Postponed Sales Flood the Market [Real Estate AtoZ]

Pungmu Station Prugio draws strong demand with price ceiling applied
Manan Station Jungang Heights sees 7-to-1 first-priority competition
First-priority eligibility in regulated areas becomes more complex
"With ongoing regulations, only projects

Apartment complexes in Gimpo and Anyang, Gyeonggi Province, which were excluded from the October 15 real estate measures, have continued to record high subscription competition rates. In contrast, it has become difficult to guarantee successful sales in regulated areas. As the real estate measures have disrupted the subscription formula, construction companies are facing even greater challenges in setting their sales schedules.

Visitors are lining up to enter the model house of 'Pungmu Station Prugio The Mark,' which opened on the 24th of last month. Provided by Daewoo E&C

According to Cheongyak Home on November 5, Daewoo E&C received 9,721 applications for 558 units in the first-round subscription for 'Pungmu Station Prugio The Mark' in Pungmu-dong, Gimpo, which was released the previous day. The average competition rate was 17.42 to 1. On October 29, the nearby 'Pungmu Hoban Summit' in Gimpo also recorded a first-round competition rate of 7.3 to 1.

Gimpo is considered a representative area that avoided the October 15 real estate measures, which imposed multiple layers of regulation such as designating all of Seoul and key areas in Gyeonggi Province as land transaction permit zones. In addition, this apartment complex is subject to the price ceiling system, which appears to have attracted end-users seeking reasonable prices.

Manan-gu in Anyang, Gyeonggi Province, was also excluded from regulation, and demand surged for the first-round subscription of 'Manan Station Joongang Heights Foret' the previous day. There were 200 applications for 28 units, resulting in an average first-round competition rate of 7.14 to 1. In Anyang, only Dongan-gu, which borders Manan-gu, is included in the regulated area. With expectations that Manan-gu could become regulated in the future, the area is experiencing a balloon effect on housing prices.

In regulated areas, subscription requirements have become even more complex, making it difficult to benefit from such special demand. To qualify for first-round selection, applicants must have held a subscription savings account for over two years, only the head of household can apply, and the applicant must not be a member of a household that won a subscription in the past five years. In regulated areas, the point system applies to 40% of units under 60 square meters, 70% of units between 60 and 85 square meters, and 50% of units over 85 square meters. In speculative overheating zones, the re-selection restriction period is 10 years, and interim loan-to-value (LTV) limits are capped at 40%.

However, being excluded from regulated areas does not guarantee successful sales. For example, Unjeong I-Park City in Paju received only 1,345 applications for 2,987 units.

As the October 15 real estate measures have emerged as a variable in the subscription market, construction companies are facing even greater difficulties in setting their sales schedules. An official from a construction company said, "We planned to announce the recruitment of residents for units in regulated areas last month, but gave up. Since the regulations were introduced, we have been monitoring the subscription trends of other construction companies."

Only complexes that can no longer postpone their sales are proceeding with subscriptions. An industry official explained, "Many complexes postponed their sales schedules due to the presidential election and other reasons, but now have no choice but to proceed. Even if an area is designated as a regulated zone, there is no other choice."

According to Real Estate R114, the total number of units scheduled for sale in November is 47,837, the highest since December 2021 (59,447 units). Of these, the number of units in the Seoul metropolitan area is 38,833, more than double the figure from the same period last year. Gyeonggi Province accounts for 72% of the total supply. Major complexes awaiting subscription include Hillstate Gwangmyeong 11 in Gwangmyeong-dong, Gwangmyeong City (4,291 units), Anyang Jaie Herition in Anyang-dong, Manan-gu, Anyang City (1,716 units), and Uiwang City Hall Station SK View I-Park in Uiwang City (1,912 units).

Yoon Jihae, Head of Research Lab at Real Estate R114, said, "Since subscription results and unsold unit numbers in regulated areas are generally stable, construction companies are expected to focus on supply in the Seoul metropolitan area until the end of this year, regardless of whether the area is regulated or not."