In the first quarter of this year (January–March), the first-priority subscription competition rate for Seoul apartments fell to the lowest level in 3 years and 3 months (13 quarters).
On the 7th, according to an analysis by RealToday, a real estate research firm, of subscription data from the Korea Real Estate Board (REB) Cheongyak Home, first-priority general supply in Seoul apartments in the first quarter totaled 607 households, with 23,234 applicants. The average competition rate was 38.3 to 1. This was the lowest competition rate since the fourth quarter of 2022 (October–December), when the average competition rate was 5.9 to 1.
Compared with the previous quarter, the fourth quarter of last year, when the first-priority competition rate and the number of applicants logged 288.3 to 1 and 100,895, respectively, it appears the subscription market has cooled.
In the first quarter, there was no supply in the three Gangnam districts where waitlisted demand concentrates (Gangnam, Seocho and Songpa), and this effect is analyzed as the main reason for the decline in the competition rate. Typically, because the price cap on pre-sales applies and the potential for price gains is large, the three Gangnam districts post higher competition rates than non-Gangnam areas, lifting the overall figures. In the third quarter of last year (July–September), the first-priority competition rate in the three Gangnam districts reached 631.6 to 1, far higher than the non-Gangnam areas (146.2 to 1).
In addition, the loan limit applied differentially by dwelling price bracket and the persistent rise in presale prices, which has caused fatigue, also appear to have weighed on the first-priority subscription competition rate for Seoul apartments.
Koo Ja-min, a researcher at RealToday, said, "As presale prices rise and lending regulations tighten, increasing the burden of raising funds, consumers are strengthening a selective subscription stance, choosing places with clear advantages in location and price competitiveness," and predicted that "the tilt toward higher-grade areas where the presale price cap applies will continue for the time being."