"140,000 Applied, but Only 2,000 Became Homeowners"... A 1.6% Chance: The Apartment-Subscription War Among People in Their 30s

[Financial News] People in their 30s account for half of all apartment winners, partly due to the expansion of special-supply units. However, when winners are measured against applicants by age group, the share is only around 1%. This is because the number of applicants is exceptionally high. In Seoul, more than six out of 10 applicants are in their 30s.
On the 30th, Financial News reported that its analysis of Korea Real Estate Board (KREB) apartment subscription data showed that 270,332 people in their 30s applied nationwide from January through July this year. Of these, 29,510 won, representing 10.9% of the applicants. In other words, about 90% of applicants in their 30s were edged out in the competition.
The competition among people in their 30s is fiercest in Seoul. During this period, 145,712 people in their 30s applied in Seoul, accounting for 62.8% of all 231,996 applicants. In effect, most applicants were in their 30s. By contrast, only 2,293 of the roughly 145,000 applicants in their 30s won. For new apartments in Seoul, the share of winners among applicants in their 30s was just 1.6%.
The fierce competition can also be seen in the first-time-homebuyer and newlywed special-supply programs, which attract the largest numbers of people in their 30s. For example, 148 newlywed special-supply units and 63 first-time-homebuyer special-supply units were allocated at Jangwi Prugio Mark One in Jangwi-dong, Seongbuk District, which was introduced in June. A total of 5,242 people applied for special supply, including 4,299 applicants for the newlywed and first-time-homebuyer programs.
Applicants in other regions also had to overcome fierce competition. In Gyeonggi Province, the share of winners among applicants in their 30s was 25.1%. Of the 41,386 applicants, 10,385 won. In Incheon, fewer than two out of 10 applicants in their 30s won, with the share standing at 17.9%.
In provincial areas, the share of winners in their 30s from January through July this year was lowest in Daegu, followed by Ulsan and Sejong Special Self-Governing City. Daegu recorded 4.0%, while Ulsan and Sejong Special Self-Governing City posted 8.4% and 11.2%, respectively.
KREB data shows that people in their 30s have become a core group in the apartment subscription market. From January through July this year, they accounted for 53.2% of all winners nationwide, more than half. As the number of special-supply units has increased, the share of winners in their 30s has remained in the 50% range since last year. At the same time, more than half of all applicants have also been in their 30s.
People in their 30s generally have lower points-based scores. As a result, they have no choice but to compete among themselves for special-supply units. The concentration of applicants in a limited number of units has created the current situation.
Meanwhile, Seoul accounted for 49.8%, or 231,996, of the 465,701 apartment subscription applicants nationwide from January through July this year. Half of all applicants were seeking apartments in Seoul. The shares of applicants from Gyeonggi Province and Incheon stood at about 13.0% and 10.0%, respectively.
[email protected] Lee Jong-bae Reporter