In Seoul, which has been called ‘subscription undefeated’, there are many cases in which winners give up their contracts. Even branded apartments are failing to keep pace with the application of stricter loan regulations and interest rate hikes.
About 30% of the winners of the brand apartment also gave up the contract
According to Hanwha E&C on the 1st, ‘Hanwha Forena Mia’ (497 households) in Mia-dong, Gangbuk-gu, will receive non-priority subscriptions for 139 uncontracted households on the 2nd. At the time of subscription, 2347 people gathered from 328 households for general sale, recording an average competition ratio of 7.3 to 1. It is a brand complex to be built in Seoul, where the supply of apartments is small, and it is close to Samyang Intersection Station on the Ui Sinseol Line, and Mia Station and Mia Intersection Station on Subway Line 4, attracting the attention of end-users.
However, as the preliminary winners one following another gave up their contracts, the number of unranked subscriptions came out. If the winner does not sign a contract, re-winning will be restricted for 10 years, but a large number of contracts have been abandoned due to the high selling price. The pre-sale price for this complex of 84 square meters is between 1,89,21 million and 1.145.24 million, which is higher than the market price in the vicinity. The asking price for the same area as ‘Doosan We’ve Trezium’ (completed in 2011, 1,370 households) is in the range of 970 million won to 1.1 billion won. ‘Raemian Tree Vera 2nd’ (completed in 2010, 1,330 households) is worth 1.30 billion to 1.12 billion won. It is pointed out that Gangbuk-gu has set the sale price higher than the surrounding market price, aiming at the fact that it is not subject to the upper price limit system.
The 1st and 2nd rounds were not even ranked… ‘Cold wind’ in the subscription market
The situation in other complexes is similar. Five of the nine apartments sold this year had uncontracted contracts. According to the subscription home, 198 households, or 91.6% of the 216 households for general supply, had no contracts for ‘Cantabil Suyu Palace’ in Suyu-dong, Gangbuk-gu (competition ratio of 6.4 to 1). On April 11th, 526 people applied for non-priority subscriptions, but 133 households once more remained uncontracted. Then, in the second non-priority subscription held on the 11th of last month, there were only 97 people who received less than the remaining households, so it is still difficult to shake off the uncontracted quantity. A sales official explained, “As soon as the contract of the preliminary winner is confirmed, we plan to post an announcement and receive the third non-priority subscription in early June.”
However, the remaining complexes with small households unsold are resolving the supply through non-priority subscriptions. ‘North Seoul Xi Polaris’ (34.4 to 1) in Mia-dong, Gangbuk-gu completed the contract for 18 uncontracted households through non-priority subscription. ‘Seoul National University Station The Hive Central’ (67.1 to 1) in Bongcheon-dong, Gwanak-gu also treated 3 uncontracted households as unordered subscriptions. ‘Shinyoung Gwell Estate Gaeeng Station’ (22.1 to 1) in Gaebong-dong, Guro-gu received 546 applications from 3 households with no ranking on the 30th of last month, and the contract is scheduled to proceed on the 10th following the winner is announced on the 3rd.
The average subscription competition rate is also rapidly falling. According to the result of analysis of subscription home data by Real Estate R114, the average competition rate for apartment subscriptions in Seoul jumped to 30.6 to 1 in 2018, 31.7 to 1 in 2019, and 88 to 1 in 2020, and then peaked at 164.1 to 1 last year. However, until May this year, the competition ratio is only 29.9 to 1.
Analysts say that the enthusiasm for subscriptions is rapidly cooling in the followingmath of high-strength loan regulations and interest rate hikes. From the complex receiving the recruitment notice in January of this year, if the total loan amount exceeds 200 million won, the total debt repayment ratio (DSR) for each individual will be applied at 40% in the first financial sector and 50% in the second financial sector. From July, the target of regulation will be expanded to borrowers with a total loan of more than 100 million won. Yeo Kyung-hee, senior researcher at Real Estate R114, said, “The higher the sale price, the more difficult it became for the winners of apartment subscriptions to plan their finances. analyzed that
Reporter Lee Hye-in [email protected]
ⓒ Hankyung.com, unauthorized reprinting and redistribution prohibited
