More than 120,000 people swarmed a no-priority subscription for three homes at Cheongnyangni Station Lotte Castle SKY-L65 in Dongdaemun-gu, Seoul. With an expected windfall close to a 1 billion won price gap if selected, a large number of applicants appeared to have piled in.
According to the Korea Real Estate Board (REB) subscription website on the 2nd, for two days from the 1st, 76,443 people applied for two units of the 84-square-meter A type at Cheongnyangni Station Lotte Castle SKY-L65. The competition rate was 38,221.5 to 1. The competition rate for the 84-square-meter D type (one unit) was 49,491 to 1.
This subscription targeted people without homes who live in Seoul. The sale prices are 1.0412 billion won for the 84-square-meter A type and 1.0564 billion won for the 84-square-meter D type. Since an 84-square-meter unit in this complex recorded a transaction at 1.95 billion won on Oct. 19, expectations emerged that winning the subscription could yield a price gap close to 1 billion won.
The lack of an owner-occupancy requirement is also cited as a reason for the subscription boom. Under the current land transaction permit system, regulations are applied based on the "land share," not the "dwellings area." Even in permit zones, if the land share is 6 square meters or less in residential areas and 15 square meters or less in commercial areas, a local government permit is not required for sales. In this case, the owner-occupancy requirement disappears, making gap investment (buying with a jeonse tenant in place) possible.
Winners of the Cheongnyangni Station Lotte Castle SKY-L65 subscription will be announced on the 5th.