The 3rd New Towns are becoming a source of disappointment for pre-subscription winners, as the hopes of homebuyers have turned into a struggle. Many prospective homeowners who entered the pre-subscription process expecting timely main subscriptions and move-in dates are now facing delays and rising prices simultaneously.
According to the real estate industry on July 4, the confirmed sale price for an 84A㎡ unit in Block A-3 of the Namyangju Wangsil 2 area is 732.45 million won, an increase of 169.15 million won from the estimated price during the pre-subscription phase. This represents a rise of approximately 30%. Block A-1 also saw its confirmed sale price jump to 693.63 million won, up by 132.48 million won. Similarly, the confirmed sale price for an 84㎡ unit in the Goyang Changneung S-1 block rose to 783.40 million won, an increase of 141.61 million won from the pre-subscription estimate.
Despite being public offerings, the burden on pre-subscription winners has increased. Although the price ceiling system is in place, making these prices lower than surrounding private apartments, the additional financial burden of 100 million to 200 million won, coupled with delays in the main subscription process, has extended the duration of their rental living situations.
The pre-subscription system was originally designed to give homebuyers a clearer timeline for acquiring their homes. While these homes are not immediately available, the intent was to reserve future public housing units to alleviate market anxiety. However, as the main subscription phase has progressed, promised timelines have slipped, and the gap between estimated and confirmed prices has widened. For winners, the longer they wait, the greater their financial burden becomes.
The dropout rate among winners is also becoming pronounced. In the Goyang Changneung S-1 block, only 212 out of 362 pre-subscription units were applied for in the main subscription, resulting in a dropout rate of 41.4%. In the Namyangju Wangsil 2 A-1 and A-3 blocks, 180 and 143 pre-winners, respectively, did not proceed with the main subscription. The dropout rates for these blocks are 28.6% and 25.7%, respectively.
The initial timeline for the main subscription for the Namyangju Wangsil 2 A-1 and A-3 blocks was set for September 2024, but the actual main subscription did not take place until May of this year. During the waiting period, pre-winners had to adjust their housing plans and opportunities for other subscriptions. As the main subscription was delayed, construction and financing costs increased, which ultimately affected the confirmed sale prices.
Any units that are dropped from the pre-subscription will be transferred to general supply. While this increases the available units for general applicants, it creates a cycle where existing pre-winners are forced to forfeit their chances of homeownership due to financial burdens.
The limitations of the system have already been acknowledged. The Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation (LH) announced that they would halt new public pre-subscriptions starting in May 2024. They have also prepared funding support measures for existing winners, but issues with financing plans remain unavoidable.
In contrast, despite the issues with pre-subscriptions, there has been strong demand in the main subscription market for the 3rd New Towns. In the general supply for the Namyangju Wangsil 2 A-3 block, 2,671 applications were received for 163 units, resulting in an average competition ratio of 126.8 to 1. The competition ratio for the 59A㎡ units soared to 433 to 1. The Namyangju Wangsil 2 A-1 block also saw a competition ratio of 105.5 to 1 in general supply, while the Goyang Changneung S-1 block recorded a ratio of 61.2 to 1.
An industry insider stated, "The 3rd New Towns remain a key supply option for genuine demand in the metropolitan area, but for pre-winners, the longer they wait, the greater the burden of confirmed prices. It is essential to not only expedite supply signals but also to reduce the gap between estimated and confirmed prices and clarify who will bear the risks of delays in the main subscription process."
* This article has been translated by AI.
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