The nationwide first-choice subscription competition rate for apartments has remained in single digits for 13 consecutive months, indicating a continued slump in the subscription market.
According to an analysis by Realhouse on August 21, the average first-choice competition rate for nationwide apartment subscriptions in July was recorded at 5.86 to 1, a decrease of 0.05 points from the previous month based on a 12-month moving average.
The nationwide first-choice competition rate has been in single digits since recording 9.08 to 1 in July of last year. In the metropolitan area, competition rates in Seoul, Incheon, and Gyeonggi all fell compared to the previous month. Seoul's rate decreased from 112.01 to 110.87 to 1, Incheon from 4.59 to 4.23 to 1, and Gyeonggi from 2.59 to 2.57 to 1.
In non-metropolitan areas, Busan saw a significant drop, with its first-choice competition rate falling to 2.14 to 1, a decrease of 1.56 points, marking the largest decline nationwide. Jeju's rate was just 0.16 to 1, remaining below the average for 12 consecutive months.
Performance in individual complexes was also poor. Among the 24 complexes that announced recruitment in July, 13 failed to fill their first-choice quotas. Notably, three out of four large complexes with over 1,000 units did not meet their first-choice subscription targets.
Conversely, subscription demand has been concentrated in a few complexes in Seoul. In July, only two complexes were offered for sale in Seoul, with a total of just 96 first-choice units available, yet the number of subscription applications reached 6,927. This accounted for 26.5% of the total 26,111 subscription applications nationwide during the same period.
Analysts suggest that rather than a complete disappearance of subscription demand, there is a growing polarization, with demand increasingly focused on verified complexes with desirable locations and product appeal.
Meanwhile, according to Real Estate 114 on August 20, the average sale price of apartments in Busan has more than doubled in four years, increasing the housing cost burden for new homes. Last year, the average sale price of apartments in Busan was 30.24 million won per 3.3 square meters, a 102% increase from 14.98 million won in 2021.
Kim Seon-a, head of the subscription analysis team at Realhouse, stated, "The subscription demand itself has not disappeared; rather, it is moving toward a few verified complexes, leading to poorer performance in others. Especially in large complexes, initial poor performance can lead to unsold units, making the timing and pricing of sales critical to the success of the project."
* This article has been translated by AI.
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