Public Housing in Bucheon Sells Out Amidst Rising Prices, Attracting 5,000 Applicants

A public housing development in Bucheon, Gyeonggi Province, just outside Seoul, has attracted significant interest, with over 5,000 applicants competing for 570 units. The 'Yeokgok District Housetory,' supplied by Namkwang Tokun, recorded an average competition rate of 9.8 to 1, with all unit types filling their quotas.

This strong demand is largely attributed to the affordable pricing, with units around 500 million won (approximately $360,000 USD) benefiting from the government's price cap system. Furthermore, a fixed-rate policy loan at 1.3% annual interest has made these homes particularly attractive to newlyweds.

The most sought-after unit was the 55㎡A type, which received 2,513 applications for 165 available units, resulting in a competition ratio of 15.2 to 1. Other unit types, including 55㎡E and 55㎡C, also saw high demand, with competition ratios of 10.2 to 1 and 8.8 to 1, respectively.

Analysts suggest that recent increases in mortgage interest rates and stricter household loan management policies may have also influenced potential buyers. The average mortgage rate from five major commercial banks stood at 5.23% as of July 16, while the average household loan balance for newlyweds has also been a consideration for many.