"Do Not Waste Your Subscription Account This Month": How to Pick and Choose Among 10,000 February Pre-Sale Units [Practical Investment Techniques]

Only 1,017 Units in Seoul, Driving Fierce Competition
Carefully Assess End-User Plans and Financing
Over 1,000 Units on Offer in Provincial Cities Cheonan and Gyeongsan

If you feel lost about where to start in buying your own home, it is worth paying close attention to the February pre-sale market. This month, around 10,000 units will be released nationwide for general sale. This is nearly four times more than around the same time a year ago. In January last year, the pre-sale market had cooled as martial law and other domestic and external instability continued.

Popular complexes in Seoul still have a high entry barrier. In November last year, the subscription competition rate for "Banpo Raemian Trinione" was 237 to 1, and in December, "Yeoksam Central Xi" recorded around 487 to 1. This demonstrates that, despite steep pre-sale prices, the preference for new builds in the Gangnam area remains strong. However, Seoul is not the only answer. In the Seoul-adjacent metropolitan area, there are complexes benefiting from major transportation projects such as the Metropolitan Express Railway (GTX), and in the provinces, there are large-scale complexes in strong locations with relatively low pre-sale price burdens.

If you win a subscription draw, you will face a restriction on winning again in regulated areas for 5 to 10 years. If you apply without much thought and end up winning a complex you do not really want, it can be a serious setback. You should apply only after asking yourself, "If I win this complex, will I really sign the contract?"

Seoul: Limited Supply and Fierce Competition... Higher Capital Gains

Sky Lounge at Raemian Elavine, Gangseo-gu, Seoul. Samsung C&T Corporation, Construction Division

According to RealToday, a real estate market information provider, the number of units scheduled for pre-sale this month totals 22 complexes and 22,968 units nationwide (including rental units and excluding officetels). Of these, the number of units available for general sale using subscription accounts is 9,999. By region, the general pre-sale supply is divided into 4,588 units (46%) in the Seoul metropolitan area and 5,411 units (54%) in the provinces.

This month, Seoul will see 1,017 general pre-sale units across three complexes. "The Sharp Singil Central City" in Yeongdeungpo-gu (477 general pre-sale units, hereafter the same) consists of small to mid-sized units with exclusive areas of 51 to 84 square meters. It is within walking distance of Sinpung Station on Line 7, and the Shinansan Line will be added in the future. Once the Shinansan Line opens, it will take just over 10 minutes to reach Yeouido. Although the total number of units is 2,054, you should keep in mind that the number of units for general sale is limited because many are allocated to association members.

"Raemian Elavine" in Gangseo-gu (276 units) is located near a station on Line 9 and offers close proximity between workplaces and residences in the Magok area. Gangseo-gu has traditionally had relatively affordable housing prices within Seoul, but recently prices have been rising rapidly thanks to the development of Magok. "Acro De Seocho" in Seocho-gu (56 units) has such a small supply that competition is expected to be intense. Because it is located in one of the three Gangnam districts, successful applicants can expect capital gains.

Gyeonggi and Incheon: Station-Area Complexes with Transport Benefits... Provinces: Large-Scale Complexes Worth Targeting

Bird's-eye view of Forena The Sharp Incheon City Hall Station in Namdong-gu, Incheon. Hanwha Construction Division · POSCO Engineering and Construction

If Seoul feels too burdensome, look to Gyeonggi and Incheon. "Guri Station Highnity River Park" in Guri (1,530 general pre-sale units) is the largest supply in the Seoul metropolitan area in February. It is a double station-area complex served by Line 8 and the Gyeongui-Jungang Line, providing access to Jamsil in just over 20 minutes and to Samseong Station in just over 30 minutes. "Anyang Station Central IPark Sujain" in Anyang (407 units) benefits simultaneously from the planned Wolpan Line, GTX-C, and the Shinansan Line.

"Ssangyong The Platinum Onsu Station" in Bucheon (230 units) is a double station-area complex served by Lines 1 and 7, which is advantageous for commuters to the G-Valley business district. "Forena The Sharp Incheon City Hall Station" in Incheon (735 units) is within walking distance of a transfer station between Incheon Lines 1 and 2. However, for units with an exclusive area of 59 square meters, the upper-end pre-sale price is in the mid-600 million won range, which is higher than surrounding market prices of the mid-400 million to 500 million won range.

In the provinces, several large-scale complexes with more than 1,000 units are being launched. For provincial pre-sales, you need to scrutinize the location more carefully. Whether the area is seeing population inflows, whether jobs (industrial complexes and companies) are nearby, and whether the transportation network is well developed are all directly linked to future prices. "Cheonan IPark City Complexes 5 and 6" in Cheonan (1,948 units) represent the largest provincial supply in February. They offer close proximity between workplaces and residences for industrial complexes including Samsung SDI. Exclusive areas are 84, 102, 120, and 197 square meters, meaning these are mid- to large-sized units, so the pre-sale prices themselves may not be low; you should therefore check prices by unit type.

"Gyeongsan Sangbang Park Hoban Summit Complex 1" in Gyeongsan (1,004 units) consists entirely of units for general sale and is close to a KTX station. "Changwon Xi The Sky" in Changwon (509 units) is a landmark complex adjacent to a national industrial complex designed for a population of 120,000. "Altiero Gwang-an" in Busan (366 units) offers views of Haeundae and Gwangalli and is close to Suyeong Station on Busan Lines 2 and 3 as well as the Centum living area. Although the pre-sale prices will be high due to the large unit sizes, it is worth paying attention to for those seeking housing for actual residence in Busan or a second home.

"January 29 Measures: Dispersed Supply Timing... Limited Impact on Subscription Market"

Your options narrow considerably just by organizing your available cash, subscription score, and commuting direction. If you can raise more than 1.5 to 2 billion won in cash and also have a high subscription score, it is worth taking a shot at a Seoul complex. In regulated areas, there is a three-year resale restriction and a two-year mandatory occupancy requirement. This means you cannot immediately sell or lease the unit on a jeonse basis after winning. You need to decide in advance whether you actually plan to live there and whether your cash flow will remain sound.

If owning a home in Seoul is financially burdensome but you still need to commute to Seoul, look at station-area complexes in Gyeonggi and Incheon. Their common strength is transportation benefits. Once GTX-C, the Shinansan Line, and the Wolpan Line open, accessibility to Seoul will improve significantly. However, "planned" and "open" are different. You must check when construction will start, when the line will open, and whether it will actually be available for use when you move in. If opening is 10 years away, it will not help with your commute in the near term.

If your subscription score is low and you have little chance of success in the Seoul metropolitan area, large-scale provincial complexes are another strategy. Cheonan has industrial complexes including Samsung SDI, Gyeongsan has a KTX station, and Changwon has a national industrial complex designed for a population of 120,000, so the demand base is solid. Because the supply is large, the probability of winning is relatively high.

Kim Eunsun, Head of the Big Data Lab at Zigbang, said, "Although the government announced a mid- to long-term plan on January 29 to expand housing supply centered on urban areas, the supply timing is spread out, so the immediate impact on the subscription market is limited," adding, "Fortunes will diverge depending on the location and product competitiveness of each complex."