'Pyeongtaek Godeok Umilin The Premier', supplied in the Godeok International New City in Pyeongtaek, Gyeonggi Province, was heavily undersubscribed in first-priority applications. Despite the backing demand from the Samsung Electronics Pyeongtaek Campus, it failed to attract buyers, observers say. Alarm is also growing in the local housing sale market.
According to the Korea Real Estate Board's Applyhome, the complex accepted first-priority applications on the 10th. It sought 585 households across 10 housing types but received only 194 applications. The average competition rate was 0.33 to 1, less than one-third of the households offered.
The 84-square-meter Type A, which has the largest supply, drew 118 applications for 277 households, a competition rate of 0.43 to 1. Type 84B drew 6 applications for 60 households (0.10 to 1), and Type 84D drew 8 applications for 29 households (0.28 to 1).
Larger housing types fared similarly. The 94-square-meter Type A drew 31 applications for 48 households (0.65 to 1). Types 94B (24 households) and 94D (6 households) received 2 and 1 applications, respectively. Type 101A (74 households) received 17 applications and Type 101B (52 households) received 1. Type 111B (9 households) received 4. The only type to fill its quota was Type 111A, with 6 applications for 6 households (1 to 1).
The industry does not see the result as a problem of a single complex. Analysts attribute it to the locational limits of the entire northern end of Godeok New City. The area has relatively poor access to the Samsung Electronics Pyeongtaek Campus. Complexes sold earlier nearby have also performed poorly one after another.
In September, the 'Hillstate Godeok Elist' in Blocks A12 and A65 received only 71 applications for 1,513 households in special supply. The competition rate was 0.05 to 1, with a subscription rate of 4.7%. General supply was also undersubscribed at around 0.1 to 1. 'Godeok New City Athera' in Block A63 likewise drew only 50 applications (0.11 to 1) for 470 households.
The living environment is also cited as a weakness. The Gyeongbu Line railway runs on the east side of the complex, and Osan Air Base lies to the north. It is a location where residents must put up with both train and fighter jet noise. Undesirable facilities such as transmission towers, a substation and a household waste treatment facility are also nearby. It is about 2.2 km in a straight line from Seojeong-ri Station on Subway Line 1, so transportation conditions are also seen as lacking.
Pricing was also reportedly unattractive. The maximum sale prices are 591.3 million won for the 84-square-meter type, 620.1 million won for the 94-square-meter type and 681.9 million won for the 101-square-meter type. The sale price cap system applied. But compared with unsold complexes already piled up nearby, the actual price advantage is small, it is explained.
A sales official said that sales of unsold units in northern Godeok are being delayed despite the advantages of being unregulated and price competitiveness. He said an unpopular location and weakened investment sentiment across Pyeongtaek overlapped. "For the time being, undersubscription is likely to continue, centered on new outlying complexes with inadequate product quality and location," he forecast.