Over a million people have applied for a chance to own an apartment in ‘THE H FIRSTIER IPARK‘ in Gangnam, setting a new record in the housing lottery’s competitive history.
On February 27, the Korea Real Estate Institute reported that 1,013,456 applications were received for ‘THE H FIRSTIER IPARK’ through its subscription portal, aiming for a chance at securing one of the three available units. This surge of interest resulted in an average competition ratio of 337,818:1.
This level of demand shattered the previous applicant record held by ‘Hukseok River Park Xi,‘ which saw 934,728 applications for just two units in June 2023.
The individual competition ratios for the apartments in THE H FIRSTIER IPARK were astoundingly high, with rates of 172,474:1 for a 34㎡ (370 square feet) unit on the 3rd floor, 503,374:1 for a 59㎡ (635 square feet) unit on the 4th floor, and 337,608:1 for a 132㎡ (1,420 square feet) unit on the 2nd floor.
THE H FIRSTIER IPARK is part of a large redevelopment project that includes 6,702 households, spearheaded by Hyundai Construction and HDC Hyundai Industrial Development. The project, which transformed the Gyeopo Jugong 1st Complex, began occupancy in December 2023. Amenities at the luxury apartment complex include a dedicated shower system for pets, multiple large swimming pools, a bowling alley, movie theater, sauna, fitness center, and more.
The intense interest in these apartments can be attributed to the significant potential to flip for a profit. Applicants of last year’s lottery were enticed by the possibility of a ‘2 billion KRW (~1.5 million USD)’ price increase from the initial distribution prices in 2020.
The rush of applications caused a temporary delay on the Korea Real Estate Institute’s subscription portal, with over 10,000 hopefuls queueing online at one point.
The sales prices for the coveted apartments were listed as follows: 656.81 million KRW (~492,908 USD) for a 34㎡ unit, 1.29 billion KRW (~968,090 USD) for a 59㎡ unit, and 2.19 billion KRW (~1.6 million USD) for a 132㎡ unit. Balcony expansions could add between 15.4 to 72.2 million KRW to these prices.
Recent resales have shown the potential for significant returns on investment, with a 59㎡ unit going for 2.2 billion KRW (~1.65 million USD) and a 132㎡ unit fetching 4.9 billion KRW (~3.7 million USD).
In Korea, anyone over 19 can apply for a non-priority subscription without restrictions on residence, home ownership, or the need for a subscription account. The process does not require residency, and there are no regulations on resale, among other benefits.
However, the non-priority subscription process has a tight timeline from announcement to contract dates, including a 10% deposit due shortly after the contract agreement, with the full balance paid by June 7.
Read More: Why over 1 million applicants are trying to buy these 3 apartments in Gangnam