Only those without housing can apply for the so-called 'joint purchase' non-ranked application. Since winning can yield profits of several billion won, the submission of applications by those with housing is being restricted for the non-ranked application, which is also referred to as 'lottery application.'
According to the Ministry of Land, Infrastructure and Transport, starting today, a revision of the 'rules on housing supply' that limits the eligibility for non-ranked application to those without housing will go into effect.
The non-ranked application system is a type of 're-supply after contract abandonment' in which the remaining units are reassigned when existing successful applicants for contracts abandon their contracts or are deemed ineligible. Previously, anyone residing in the country who was an adult could apply for the non-ranked application regardless of their housing ownership, residence area, or status of having a subscription account.
However, from now on, only those without housing will be eligible to apply for the non-ranked application. The residential requirements will be left to the discretion of the mayors, county heads, and district heads who have the authority to approve the recruitment announcements. If there is concern over unsold units, the residential requirements may be waived to allow applications from outsiders, while conversely, if there is concern over excessive competition, applications from outsiders may be restricted.
The Ministry of Land, Infrastructure and Transport is revising the non-ranked application system because the non-ranked applications for apartment complexes that can expect profits of several billion won have shown signs of overheating. Last year, about 3 million applicants targeted the non-ranked application for the Lotte Castle at Dongtan Station, which aimed for an expected price gain of about 1 billion won.
The first case to which this system revision will apply is likely to be the Olympic Park Foreon in Gangdong District, Seoul. Local authorities and project leaders are currently in discussion about the timing of the implementation of the non-ranked application. The quantities expected to be offered in the upcoming non-ranked application are four units with exclusive areas of 39, 49, 59, and 84 square meters.
During the application period in March 2023, the exclusive area of 59 square meters at Olympic Park Foreon ranged from 979.4 million won to 1.0625 billion won, while the 84-square-meter units ranged from 1.236 billion won to 1.3204 billion won. Currently, the sale prices are more than 1 billion won higher than the original sales prices.
The Ministry of Land, Infrastructure and Transport will strengthen the verification of actual residence to curb illegal behaviors such as fraudulent registrations to gain point advantages for the number of dependents in the applications. Previously, the dependents were verified through family relationship certificates and resident registration records. However, going forward, the health insurance benefits related to dependents using hospitals and pharmacies will also be checked to determine actual residence status. For direct ascendants, records for the past three years prior to the recruitment announcement date will be checked, and for direct descendants over 30 years old, records for one year will be verified.