Government mortgage rules, no 'lotto' complexes drive September's lowest competition rate since 2023

The competition rate for apartment subscription applications in September fell to its lowest level in two years. This is because there were no complexes expected to generate profits so high that they could be called "lotto subscriptions," and subscription prices have risen.

According to an analysis by Real House, a real estate evaluation company, based on data from the subscription home platform, the nationwide average first-priority subscription competition rate as of September was recorded at 7.78 to 1. This is the lowest competition rate since September 2023, when the rate was 7 to 1.

Looking at the monthly average first-priority subscription competition rate trends, after recording 9.04 to 1 in October 2023, the rate has maintained an average around 10 to 1. The competition rate, which reached 13.17 to 1 in January and 14.55 to 1 in February of this year, dropped to 9.08 to 1 in July following the government's June 27 mortgage regulations.

The complex with the highest competition rate was Cheolsan Station Jairo in Gwangmyeong, Gyeonggi Province, which recorded 37.96 to 1. Despite a subscription price of 18,570,000 Korean won per square meter, higher than in Seoul, Cheolsan Station Jairo became a complex with a high competition rate. Venueve Haeundae in Haeundae-gu, Busan, recorded a competition rate of 21.16 to 1, followed by Busan Hillstate Sajik Asia, which recorded 17.12 to 1.

However, Gwangju Hillstate Jiseok received applications from only one person for 52 households, and Gyeongbuk Dasan World Meridian Centum High received applications from only two people for 461 households.

As subscription competition rates in regional areas remained low, the number of unsold apartments nationwide turned to an increase for the first time in seven months. As of August, the nationwide unsold apartments totaled 66,613 households, an increase of 4,369 households from the previous month (62,244 households). This was influenced by increases of over 1,000 households in Busan (7,146 households), Gyeonggi (11,857 households), and South Chungcheong (5,499 households).

Real House's Kim Seon-ah, head of the sales analysis team, said, "Overall competition rates are declining and unsold apartments are increasing due to the impact of the government's June 27 mortgage regulations." She added, "Exceptionally, Incheon saw subscription price ranges that were relatively accessible despite the 600 million won loan limit regulations, driving actual demand, and Ulsan's regional positive factors, such as industrial complex development, are positively affecting demand absorption."

Apartment Subscription Competition Rate Hits Two-Year Low