DK Urban Development and DK Asia to Launch 'Geomam Station Royal Park City Prugio' in 'Station Area 6·6 Club' District

6-Month Resale Restriction in Seoul Metropolitan Area, Popularity of Subway Station Complexes Under 600 Million KRW
Additional Real Estate Regulations Reduce 6·6 Club Membership Areas, Increasing Scarcity
Idle Funds Eye 'Suyongseong', Potential Inflow to Incheon and Northern Gyeonggi

With the announcement of the February 20 real estate measures, the value of areas joining the ‘6ㆍ6 Club’ located near subway stations in the metropolitan area’s pre-sale market is expected to rise significantly. These areas have a low purchase burden as the pre-sale rights can be resold six months after the winner announcement, and the sale price is below 600 million KRW. In particular, there is a high possibility of premium formation due to expectations that prices will “match up” with surrounding home prices that have recently risen by hundreds of millions of won over the past few months.

Since the resale restriction period is short and premiums are expected, the phenomenon of ‘Jupjup’ (meaning “picking up and picking up again”) buyers flocking to the subway station 6ㆍ6 Club areas is also expected to continue. The non-contract subscription, which proceeds after the official contract, attracts crowds, and anyone aged 19 or older can apply without a subscription savings account and is exempt from re-winning restrictions.

In fact, when pre-sale rights become available for resale in 6ㆍ6 Club areas, transactions with premiums added have been active. The representative beneficiary area is Incheon City, which is considered a regulation-free zone. According to the Korea Real Estate Board, Incheon saw 3,791 pre-sale rights transactions in the fourth quarter of last year, an 80% increase compared to 2,104 transactions in the same period the previous year.

For example, the ‘Bugae Station Kolon Haneulchae’ in Bupyeong-gu, located near Bugae Station on Subway Line 1, found a buyer for an 84㎡ pre-sale right at 501.8 million KRW in January this year. The sale price in June last year was 465.2 million KRW, showing a premium of 36.6 million KRW within half a year. Similarly, the resale restriction was lifted at the end of December last year for the ‘Juan Castle & The Sharp Eduforet’ in Michuhol-gu. This apartment, located within walking distance of Seokbawi Market Station on Incheon Subway Line 2, was sold for 477.06 million KRW six months after being priced at 442.26 million KRW for an 84㎡ unit, forming a premium of about 35 million KRW.

With such price rise expectations, the subway station 6ㆍ6 Club areas are truly hot with subscription fever. The ‘Suwon Haneulchae The First’ near Maetan Gwonseon Station on the Bundang Line, which was sold in November last year, recorded an average competition rate of 60.4 to 1 in the first-priority subscription. This apartment’s highest price (84㎡) is in the 490 million KRW range. Although it is a regulated area, it is classified as a non-overheated subscription zone, and the ‘Maegyo Station Prugio SK View (under 74㎡ and below 600 million KRW)’ next to Maegyo Station on the Bundang Line, which has a six-month resale restriction, attracted 156,505 applicants on the 19th, the highest ever in Suwon, with an average competition rate of 145.7 to 1, heating up the market. These apartments are priced up to 200 million KRW lower than nearby market prices, raising expectations for premiums.

After the first-priority subscription, a ‘Jupjup frenzy’ is also occurring. This is due to demand from not only actual buyers but also those nationwide aiming for profits by reselling pre-sale rights. More than 70,000 people competed for 14 non-priority units of ‘Suwon Haneulchae The First,’ and 67,965 people flocked to 42 remaining non-contract units of ‘Hillstate Prugio Suwon’ near Maegyo Station, showing an average competition rate of 1,618 to 1. The project’s website even experienced a crash due to the overwhelming traffic.

Following this, idle funds seem to be sweeping through subway station 6ㆍ6 Club areas clockwise from Suwon. The non-contract subscription for 8 remaining units of ‘Artejai’ in Manan-gu, Anyang, attracted a total of 33,524 applicants, recording an average competition rate of 4,191 to 1. This apartment is accessible to Gwanak Station and Anyang Station on Line 1, and more than 70% of the units are under 59㎡ with prices below 600 million KRW. In Incheon, 47,626 applications were received for the non-priority subscription of ‘Bupyeong Doosan We've The Park’ in Bupyeong-gu, where all unit prices are below 600 million KRW. This apartment is near the planned Sangok Station on the extension of Subway Line 7.

As the market heats up, on the 20th, the Ministry of Land, Infrastructure and Transport additionally designated five areas?Gwonseon, Yeongtong, and Jangan Districts in Suwon, Manan-gu in Anyang, and Uiwang?as regulated areas. Furthermore, the resale restriction period within all existing regulated areas was unified to the date of ownership transfer registration (usually three years). Additionally, the loan-to-value ratio (LTV) within regulated areas was differentiated, reducing it from 60% to 50% for houses priced under 900 million KRW, and strengthened the mortgage loan rules for one-home households in regulated areas to require ‘disposal of the existing home and moving into the new home within two years.’

Real Estate Info’s research team leader Kwon Il said, “As the number of regulated areas continues to increase, apartments meeting the 6ㆍ6 Club conditions are decreasing in the metropolitan area,” adding, “Interest will grow more in Incheon and northern Gyeonggi areas, which have many brand-name large complexes and transportation benefits.”

New pre-sales in subway station 6ㆍ6 Club areas continue. First, DK Urban Development and DK Asia, the top urban development companies, plan to pre-sell ‘Geomam Station Royal Park City Prugio’ in April near Geomam Station on the Incheon Airport Railroad in Seo-gu, Incheon. It is a 40-story complex with a total of 4,805 units, developed as Korea’s first resort city offering ocean and river views at a glance. Notably, more than 90% of the units are small to medium-sized with exclusive areas of 59, 74, and 84㎡. The lottery ratio is also 80%, providing subscription opportunities for younger generations in their 30s and 40s with relatively low subscription scores, and the loan-to-value ratio (LTV) can be up to 70%.

Hyundai Construction also has a pre-sale in Incheon. On the 13th, they opened a cyber model house and started pre-selling ‘Hillstate Bupyeong’ through the redevelopment of Baegun 2 District in Bupyeong-gu. Out of a total of 1,409 units, 837 are general sales with exclusive areas ranging from 46 to 84㎡. It is adjacent to Baegun Station, and GTX-B (Metropolitan Express Railway) is scheduled to open at Bupyeong Station, one stop away.

In Uijeongbu, Daewoo Construction plans to pre-sell 910 units through the redevelopment of Central 3 District near Uijeongbu Station on Line 1 in the first half of the year. Following that, HDC Hyundai Development plans to release 1,092 residential-commercial complex units in Uijeongbu to the market in July.

This content was produced with the assistance of AI translation services.