South Koreans abandon housing subscriptions as prices soar, winning chances dwindle

A growing number of South Koreans are abandoning their housing subscription accounts, a trend driven by escalating apartment prices and diminishing chances of winning a bid. This has led to a significant drop in account holders, with over 100,000 cancellations recorded in June alone.

One subscriber, identified as Kim, a 37-year-old office worker, recently canceled his decade-old account. He cited low odds of winning due to his single-person household status and the unaffordable prices even if he were to win. Kim plans to reinvest the withdrawn 10 million won (approximately $7,200) into the stock market.

Official data from the Korea Real Estate Board shows that the total number of housing subscription accounts nationwide stood at 25,834,034 at the end of June, a decrease of 100,639 from the previous month. This marks a substantial drop of 542,334 compared to the same period last year. The peak was recorded in June 2022 with 28,599,279 accounts.

The trend is particularly pronounced in the Seoul metropolitan area, with Gyeonggi and Incheon provinces seeing a decrease of 36,590 accounts and Seoul experiencing a reduction of 27,939 accounts in June. Major metropolitan cities and other regions also reported significant declines.

Analysts attribute this sharp decline to the surge in apartment pre-sale prices. In May, the average price for private apartments in Seoul surpassed 19 million won per square meter for the first time. Nationwide, the average pre-sale price also hit a record high. This makes it difficult for potential buyers to secure the substantial down payments and interim payments required, even if they win a bid. Furthermore, the average subscription score needed to win a bid has been steadily rising, reaching a record high of 65.81 points in 2024, making it nearly impossible to secure a property in desirable areas without a near-perfect score.

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I canceled my account because the odds of winning a subscription are low for a single-person household, and even if I win, I won't be able to afford the sale price.