The disparity in the housing subscription market between Seoul and regional areas is widening. Last month, the average competition ratio for general supply in Seoul reached 84.8-to-1, while Gangwon and Chungnam recorded only 0.02-to-1. While Seoul experiences competition rates in the dozens to hundreds, some regions are seeing applications fall significantly short of available units.
According to an analysis of data from the Korea Real Estate Agency's subscription home, a total of 19,154 applications were submitted for 226 units in Seoul during the general supply subscription held in August, resulting in an average competition ratio of 84.8-to-1. In Gyeonggi, the ratio was 1.3-to-1, while Daegu stood at 0.4-to-1 and Jeonbuk at 0.3-to-1.
The 'Ssyangyong The Platinum Seodaemun,' which held subscriptions from August 24 to 27, saw 1,112 applications for 28 general supply units, yielding an average competition ratio of 39.7-to-1. For the 59㎡A units, which had only 2 available, 481 applications were submitted, pushing the competition ratio to 240.5-to-1.
In the case of the 'The Sharp Singil Central City,' 8759 applications were received for 31 units, resulting in a competition ratio of 282.5-to-1. Similarly, 'Summit Clavion' attracted 5,543 applications for 83 units, leading to a competition ratio of 66.8-to-1.
However, it is important to note that the total supply in Seoul was limited to 226 units, with the Singil Central City accounting for 45.7% of all applications, indicating that the scale and conditions of individual projects significantly influenced the average competition ratio.
In contrast, Gangwon had only 7 applications for 302 units, and Chungnam received just 14 applications for 620 units, resulting in competition ratios of 0.02-to-1 each. Daegu had 136 applications for 340 units, while Jeonbuk had 80 applications for 290 units.
This stark difference is attributed to the varying market conditions and pricing pressures in different regions. In Seoul, limited new supply combined with lower prices than surrounding market rates has led to heightened demand for subscriptions. Conversely, in regional areas, a stagnant existing housing market and rising prices have diminished the incentive to apply for new subscriptions.
If the sluggish subscription rates lead to unsold inventory and delays in contract payments, it could increase financial burdens for regional construction companies. Concerns about unsold inventory may prompt builders to delay sales schedules or reduce new projects, potentially impacting housing supply in those areas.
Seojin Hyung, a professor at Kwangwoon University’s Department of Real Estate Law, stated, “The key factor in subscriptions is the potential for price increases after sales, and consumers perceive that the likelihood of price increases is concentrated in the metropolitan area. If subscription demand continues to concentrate in Seoul while unsold inventory accumulates in regional areas, it could lead to deteriorating business conditions for construction companies, ultimately becoming another burden for the government.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.