Bundang and Gwangmyeong 'Non-Regulated Complexes' That Secured Pre-Sale Approval Before Regulations See Hot Subscription Demand [Real Estate AtoZ]

The Sharp Bundang Tier One draws 16-to-1 competition for special supply
Subscription open to non-heads of household; three-year resale restriction applies
High pre-sale prices put spotlight on subscription results

Although the complexes were included in regulated areas following the October 15 measures, those that swiftly secured pre-sale approval before the announcement are attracting significant attention. Despite being designated as regulated areas, these complexes are expected to see strong demand even at high pre-sale prices, as they are subject to pre-regulation subscription criteria.

According to Cheongyak Home and other sources on November 11, "The Sharp Bundang Tier One," which accepted special supply applications the previous day, received pre-sale approval before being designated as a speculative overheating zone. For the 55 units available under special supply, 900 people applied, resulting in an average competition ratio of 16.36 to 1.

The Sharp Bundang Tier One perspective. Provided by Nutimaeul 3rd Complex Remodeling Housing Association

This complex is included in a speculative overheating zone but achieved solid results by applying the pre-regulation criteria. Typically, in speculative overheating zones, only the head of household is eligible for first-priority subscription, but in this case, other household members are also eligible. If the subscription savings account has been held for at least 12 months and the regional and size-specific deposit requirements are met, one can apply. For units of 85 square meters or less, the deposit is 3 million won for Seoul and 2 million won for Seongnam City and Gyeonggi Province.

In land transaction permit zones, buyers are required to reside in the property for two years from the acquisition date. However, this complex is exempt from such regulations, and if there is no mortgage, there is no obligation for actual residence. There are also no restrictions on winning multiple subscriptions.

However, a resale restriction of three years (for the Seoul metropolitan area) applies. For complexes sold after the designation as regulated areas, the restriction is seven years in adjustment target areas and ten years in speculative overheating zones. Loan regulations are the same as other regulated areas. For interim payment loans, the loan-to-value (LTV) ratio is limited to 40%.

A sales representative explained, "If you take out a mortgage loan when paying the balance, an actual residence obligation is imposed at all sites, requiring you to move in within six months."

Hillstate Gwangmyeong 11 (tentative), which will begin special supply on the 17th, also secured pre-sale approval before October 15. With more than three years and six months remaining before move-in (scheduled for June 2029), resale is possible before the transfer of ownership registration. This complex also has the same subscription eligibility as non-regulated areas and no restrictions on winning multiple subscriptions.

Perspective view of Hillstate Gwangmyeong 11 (tentative). Provided by Hyundai Engineering & Construction

Both complexes are not subject to the pre-sale price cap, resulting in higher pre-sale prices compared to neighboring complexes, drawing attention to the subscription results. The pre-sale price of The Sharp Bundang Tier One is between 67 million and 71 million won per 3.3 square meters, with the standard unit price ranging from 2.43 billion to 2.684 billion won. This is close to the standard unit price of Banpo Raemian Trini One, which is subject to the price cap (2.651 billion to 2.749 billion won). Hillstate Gwangmyeong 11's pre-sale price is 45 million won per 3.3 square meters, the highest in the Gwangmyeong area. The standard unit price for this complex ranges from 1.626 billion to 1.641 billion won.

Kim Hyosun, Chief Real Estate Specialist at NH Nonghyup Bank, stated, "It seems that subscriptions could be successful as these complexes can avoid regulations such as the land transaction permit system and regulated areas, but if the pre-sale price is considered too high, it could become a weakness." She added, "Buyers should thoroughly verify whether the purchase price has potential for future value appreciation, whether they can pay with their own capital, when they can move in, and how they will pay the pre-sale balance."

Kim further explained, "Although more pre-sale units are expected to be released in prime locations, it will not be easy for those without sufficient asset-building capacity due to loan regulations to participate in subscriptions. Both the supply of pre-sale units and the demand from subscribers may become polarized by location. It is also necessary to consider easing loan regulations for young people and newlyweds who have not yet built up assets."