Recent data from the apartment subscription market reveals a stark contrast in competition rates between Seoul and regional areas, with Seoul's rate exceeding that of the provinces by more than seven times. However, performance varied significantly across different regions and complexes, indicating a shift towards a more selective approach based on housing type.
According to data released on August 10 by the Korea Real Estate Agency, a total of 33 apartment complexes that completed general supply applications from July 1 to July 31 received 34,821 applications for 7,539 units, resulting in an overall competition rate of 4.62 to 1.
However, the disparity between Seoul and the provinces is pronounced. In Seoul, four complexes offered 691 units and received 14,648 applications, achieving a competition rate of 21.20 to 1. In contrast, eight provinces outside the capital saw 4,692 units with only 13,096 applications, yielding a rate of 2.79 to 1. This means Seoul's competition rate is 7.6 times higher than that of the provinces.
When comparing supply and application ratios, the concentration in Seoul becomes even clearer. Although Seoul's general supply accounted for only 9.2% of the total, it attracted 42.1% of all applications. Excluding Seoul, the overall competition rate drops to 2.95 to 1, indicating that some complexes in Seoul significantly raised the average.
In contrast, Busan saw only 73 applications for 347 units, resulting in a competition rate of 0.21 to 1, while Ulsan and Jeonbuk recorded rates of 0.15 to 1 and 0.13 to 1, respectively. Jeju had just 23 applications for 378 units, leading to a rate of 0.06 to 1, with applicants failing to reach even one-tenth of the available units. Overall, 19 out of the 33 complexes, or 57.6%, had fewer applications than available units, indicating that more than half of the complexes could not attract enough applicants.
Applications have become concentrated in a select few complexes. This trend of 'selective subscription' shows that demand is focused on specific regions and complexes. The top five complexes, including Jangwi Prugio Mark One, Changwon Hanshin The Hue Mega Centum, Dongjak Central Dongmun The East, Pentahills W Phase 1, and Wolgye Jungheung S-Class Riviera, received a total of 22,503 applications, accounting for 64.6% of all applications.
Within Seoul, there were significant variations among complexes. Dongjak Central Dongmun The East received 3,903 applications for 34 units, resulting in a staggering competition rate of 114.8 to 1. Wolgye Jungheung S-Class Riviera also saw 3,024 applications for 62 units, achieving a rate of 48.8 to 1. Meanwhile, Dephine Artia had 1,753 applications for 85 units, and Jangwi Prugio Mark One received 5,968 applications for 510 units.
When examining housing types, consumer preferences have become more segmented. Overall this year, rising prices and loan regulations have led to a preference for smaller units.
In the first priority area for Jangwi Prugio Mark One, the 46-square-meter units had the highest competition rate at 81.17 to 1, while the 84-square-meter B units, which had a larger supply, only reached a rate of 4.43 to 1. The significant price difference, with the highest price for the 46-square-meter units at around 800 million won compared to 1.7 billion won for the 84-square-meter units, suggests that demand has shifted towards smaller units due to total price and financial burden considerations.
At Noryangjin Dephine Artia, the 59-square-meter A units recorded a competition rate of 50.1 to 1, while the 59-square-meter B units reached 36.7 to 1, in stark contrast to the 109-square-meter units, which only had a rate of 1.8 to 1. Dongjak Central Dongmun The East also saw a high competition rate of 198.67 to 1 for the 59.7098-square-meter units.
Conversely, Wolgye Jungheung S-Class Riviera exhibited the opposite trend, with the 84-square-meter units achieving a competition rate of 105 to 1. This indicates that within Seoul, factors such as supply volume, pricing, location, and the scarcity of new developments have influenced the perceived value of certain housing types.
Experts predict that this selective subscription trend will become even more pronounced in regional areas. Kwon Dae-jung, a professor of economics and real estate at Hansung University, noted, “Even within the same region, subscription performance varies dramatically. Location, brand, pricing, and living infrastructure are key determinants of success.”
Additionally, there is a growing tendency to apply only to complexes deemed competitive after considering funding and surrounding market prices, rather than using subscription accounts indiscriminately. A real estate industry insider stated, “The trend in subscriptions is changing due to government regulations,” adding, “While small units are currently in demand due to loan restrictions, selective and cautious subscriptions for 84-square-meter units are also on the rise depending on location conditions.”
* This article has been translated by AI.
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