The 3rd New Town project is turning into a source of disillusionment for pre-sale winners, as homebuyers who initially anticipated a timely main application and move-in date are now facing delays and rising prices.
According to the real estate industry on July 4, the confirmed sale price for the 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-sale application. This represents a 30.0% increase. Similarly, the confirmed sale price for Block A-1 is 693.63 million won, up by 132.48 million won from the estimate. The confirmed price for the 84㎡ unit in the Goyang Changneung S-1 block has also risen to 783.40 million won, an increase of 141.61 million won from the pre-sale application.
Despite being public offerings, the burden on pre-sale winners has grown. Although the price ceiling system is in place, making the prices lower than surrounding private apartments, the additional burden of 100 million to 200 million won, combined with delays in the main application process, has extended the duration of their rental periods.
The pre-sale application was originally designed to give homebuyers a glimpse of an earlier homeownership timeline. While it does not provide immediate housing, the intent was to reserve future public housing supply to alleviate market anxiety. However, as the main application phase has begun, 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.
Withdrawals from the pre-sale program are also becoming more pronounced. In the Goyang Changneung S-1 block, only 212 out of 362 allocated units received applications for the main sale, resulting in a withdrawal rate of 41.4%. In the Namyangju Wangsil 2 A-1 and A-3 blocks, 180 and 143 pre-sale winners, respectively, did not apply for the main sale, with withdrawal rates of 28.6% and 25.7%.
The original timeline for the main application for the Namyangju Wangsil 2 A-1 and A-3 blocks was set for September 2024, but the actual main application only took place in May of this year. During the waiting period, pre-sale winners had to adjust their housing plans and opportunities for other applications. As the main application was delayed, construction and financing costs increased, which ultimately reflected in the confirmed sale prices.
Any units that are withdrawn from the pre-sale will be transferred to general supply. While this increases the supply for general applicants, it creates a situation where existing pre-sale winners are forced to forfeit their homeownership opportunities due to financial burdens.
The limitations of the system have already been confirmed. The Ministry of Land, Infrastructure and Transport and the Korea Land and Housing Corporation (LH) announced that they would halt new public pre-sale applications starting in May 2024. Although they have prepared funding support measures for existing winners, issues with financing plans remain unavoidable.
In contrast, despite the issues with pre-sale applications, there has been significant demand in the main application market for the 3rd New Town project. The general supply for the Namyangju Wangsil 2 A-3 block saw 2,671 applicants 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 recorded a competition ratio of 105.5 to 1 for general supply, while the Goyang Changneung S-1 block had a competition ratio of 61.2 to 1.
An industry insider stated, "The 3rd New Town project remains a key supply option for genuine demand in the metropolitan area, but for pre-sale winners, the longer they wait, the greater the burden of sale prices. It is important to expedite supply signals, but there is a need for system improvements to reduce the gap between estimated and confirmed prices and clarify who bears the risks of delays in the main application process."
* This article has been translated by AI.
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