Government's 10,000 Lottery Homes: Gwacheon Distribution Details

The government’s release of 10,000 lottery homes in Gwacheon offers a unique opportunity for affordable housing.

### Government to Release 10,000 Affordable Housing Units in Desirable Gwacheon Area
* 🏡  The government plans to build **10,000 affordable housing units** worth around **1 billion won each** in Gwacheon, a highly sought-after area in Gyeonggi Province.
* 🌳  The development will be located near Seonbawi Station and Gyeongma Park Station, making it only **three subway stops away from Gangnam** and **closer to Seoul** than the existing Gwacheon Station.
* 💰  The estimated price for these units is **significantly lower** than the current market prices in Gwacheon, where the average transaction price for a 33-pyeong unit is around **2 billion won**.
* 🎰  With 10,000 units available, the chances of winning one through the lottery system are **much higher** compared to previous government housing releases.
* 🏗️  The development will include **16 housing complexes** with a total of **104 households**, accommodating around **10,000 residents**.
* 🏫  The area will feature five schools (one kindergarten, two elementary schools, one middle school, and one high school) and a park with a **green space ratio of 26%**.
* 🔑 " Gwacheon is one of the **top three areas** in the metropolitan area. If we look at it purely from the perspective of housing prices, it's not about how livable it is, but simply in terms of prices, we have **Pangyo first, followed by Bundang, and then Gwacheon**.

The government plans to release 10,000 lottery homes worth 1 billion won. Where will they be distributed? Hello, this is the pilot program that reads to you from home. Today, I have breaking news. The government is going to build a staggering 10,000 homes in a very desirable location. This location is likely to be one of the top areas in Gyeonggi Province. Moreover, it's a place where prices do not drop even when compared to Gangnam. So, where will these 10,000 homes be located, and how can we aim for them? Let's study this together through the screen. Recently, there have been various confusing circumstances regarding the rise in housing prices. To be precise, the increase in housing prices has been limited to Seoul, but there are concerns that it may spread nationwide, which is quite worrisome. In light of this, the government has decided to release 10,000 lottery homes worth 1 billion won.

The price is around 1 billion won, which is expected to be about 10 billion won cheaper compared to the surrounding market prices. Recently, looking at the properties that have been sold, it seems to align with this expectation. In my estimation, the price difference could be between 10 billion and 14 billion won. With a total of 10,000 units being released, we have indeed seen a lottery worth 10 billion won. There have been a few instances of this in the past, where, for example, a large number of units would be around 20, making the competition fierce, but not many people actually won. However, this time, with 10,000 units being offered, the chances of winning are significantly higher. The location where these 10,000 units are being released is the Gwacheon area, which has received approval for early supply. Many of you may have heard of Gwacheon, but it is truly...

Geographically, it is a well-known area that is good for living, with reasonable housing prices. If you look here, this side is what we commonly know as Gangnam, and over here is Sadang Station. This area near Sadang Station is where we are currently discussing, and the expensive housing area known as Gwacheon is over here. We commonly refer to the section that stretches from Gwacheon Station to Gwacheon Knowledge Information Town as Gwacheon, which is located in the upper part of this area. In terms of subway stations, it is close to Seonbawi Station and Gyeongma Park Station. Compared to the existing Gwacheon Station, the distance to Seoul is about three subway stops shorter, making it closer to both Gangnam and Sadang. Currently, the area of Gwacheon Health Center is about 60% of this size. There are 104 households, and a total of 16 housing complexes are being developed. It is estimated that around 10,000 people will reside here, with a population of approximately 27,000 expected, assuming an average of about 2.7 people per household.

There is a park with a green space ratio of 26%, which is quite significant. This means that 26% of the area is parkland, which is double the size of Yeouido Park. It's an area with a lot of greenery, geographically advantageous, and property prices are high. The self-sufficiency function is at 17%, comparable to the level of Pangyo Techno Valley. As we will discuss later, property prices in Pangyo are also very high, mainly because of the self-sufficiency provided by the Techno Valley, which attracts high-income earners. So, you can think of it in that context. There will be a total of five schools: one kindergarten, two elementary schools, one middle school, and one high school. However, for those who are not familiar with Gwacheon, it is known for properties worth 1 billion won.

You might think that the lottery is a bit ridiculous. What is Gwacheon? What makes it a lottery? We need to take a look at the transaction prices. The average transaction price in Gwacheon, based on the national standard for a 33-pyeong unit, is about 2 billion won. This price seems quite high for the metropolitan area. Gwacheon is indeed a place where housing prices are expensive. If we look at the actual transaction prices, there are some apartments in front of Gwacheon Station, specifically newly built apartments. For instance, Gwacheon Prugio is priced at 2.2 billion won, Gwacheon Central Suite at 2 billion won, Gwacheon Central Park at 1.93 billion won, and Gwacheon Xi apartment at 2.05 billion won. We can roughly say that the prices are around 2 billion won. Among these, the Gwacheon Xi apartment was the most recently sold, as it was offered in 2022.

I had a sale, and the selling price based on the national standard for a 33-pyeong unit was about 1 billion won. The cheaper ones were around 940 million won, while the more expensive ones were about 1.05 billion won. Generally speaking, the selling price was around 1 billion won, but how much has it increased? It has risen to 2 billion won. As a result, there has been a price difference of about 1 billion won. 

Now, simply put, if these branded private apartments were sold for 1 billion won, would public apartments be sold for about 1.5 billion won? No, public apartments are generally cheaper than private apartments. Of course, the quality may be somewhat lower in certain aspects. For instance, the interior materials, ambiance, quality, doors, and community facilities might not be as good. However, fundamentally, the selling price is lower than that of private apartments.

And now, we are developing this place, which is not located in front of the station but rather on a mountain. We are clearing the mountain, and since we are building there, the prices will be very affordable. For example, if we were to build in front of the station, the land prices would be high. In the case of land near Gwachon Station, the price per pyeong would likely be between 5,000 to 7,000 won. If we were to purchase land in such an area to build apartments, the high land costs would inevitably lead to high apartment prices, which is why we see prices like 1 billion won. However, since we are clearing the mountain and changing its land use to build apartments there, the land costs will be minimal. Therefore, the sale price will likely not reach 1 billion won. So, will the government sell an apartment for 1 billion won when it costs us only about 300 to 400 million won? This is something I...

It seems a bit overwhelming when I look at it. In my opinion, the sale price could be lower than that, possibly in the 700 million to 800 million range. In that case, we could view the price difference not as 1 billion but rather as 1.3 billion. So, it could be seen as quite a lottery opportunity. Gwacheon is one of the top three areas in the metropolitan area. If we look at it purely from the perspective of housing prices, it's not about how livable it is, but simply in terms of prices, we have Pangyo first, followed by Bundang, and then Gwacheon. This means it is among the top three, which are generally more expensive than Seoul. While they are cheaper than Gangnam, they are more expensive than most areas in Seoul. If a new development is launched at a price under 1 billion in such a place, with 10,000 units coming out, and a price difference of at least over 1 billion, then it could be quite worth targeting, especially by 2029.

There will be sales or scheduled move-ins, but this is a bit ambiguous. There is still quite a bit of time until the sales, but we also need to keep in mind that housing prices are rising, and the public is feeling anxious. The administration is somewhat unstable, and this could lead to early sales. For instance, the same happened in the Samgi new town, where there were early sales through pre-registrations. So, we should keep an eye on the possibility of early sales. 

Additionally, even if I win a lottery for a house now, I can't come up with 700 to 800 million won. Even if I take out a loan, I would need at least 200 to 300 million won, and many people don't have that money. For those planning to buy a house in about five years, they are making plans to save money to prepare the funds needed for that purchase. Such individuals are quite well-prepared. So, we should consider those aspects as well.

It would be good to know a bit about this. This is not originally where it was supposed to be. That area is actually a green belt, a mountain. It's a really well-located mountain, but in order to curb the rising housing prices in Seoul, they are now opening up the green belt and supplying housing in a really good location. That's why it's like a lottery, and we should take this opportunity to consider it. One tip I can give is that in the case of Gwacheon, there has been a policy prioritizing residents of Gwacheon. However, this time they are contemplating whether to prioritize Gwacheon residents or treat all nationwide residents equally. So, I think that if you can move to Gwacheon around 2027, which is about two years from now, you could enjoy significant benefits when applying for housing.

There will be a number, right? If we look at it nationwide, we must include everyone across the country. We need to include all our friends as well. If you win, living in Gwacheon is actually better than expected, so I think it would be nice to live there for two weeks. That's it for today's broadcast. In the future, if I have more good information, I will quickly and promptly share it with you all. Thank you sincerely for studying together today. Have a happy day, and I'll see you again next time.

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Government's 10,000 Lottery Homes Initiative

The government is releasing 10,000 lottery homes worth 1 billion won in a desirable location in Gyeonggi Province, aiming to offer them at 10-14 billion won cheaper than the surrounding market prices.

The homes will be located in the Gwacheon area, which has received approval for early supply and is well-connected to Seoul.

The initiative is expected to significantly increase the chances of winning a home, with around 10,000 people anticipated to reside in the newly developed housing complexes.

The Green Space and High Property Prices in Gwacheon

Gwacheon has a significant green space ratio of 26%, double the size of Yeouido Park, and is geographically advantageous with high property prices.

The area has a self-sufficiency function of 17%, similar to Pangyo Techno Valley, which also attracts high-income earners.

With a total of five schools and average transaction prices for apartments around 2 billion won, Gwacheon is known for its expensive housing market.

The Impact of Location on Apartment Prices

The selling price for a 33-pyeong unit has increased from around 1 billion won to 2 billion won, creating a 1 billion won price difference.

Public apartments are generally cheaper than private ones, with lower quality in certain aspects.

The development of apartments on a mountain, away from high-demand areas, is expected to result in more affordable prices, potentially not reaching 1 billion won.

The sale price for housing in Gwacheon is estimated to be between 700 million to 800 million won, making it a potential lottery opportunity.

Gwacheon is among the top three most expensive areas in the metropolitan region, with a new development launching 10,000 units at a price under 1 billion won by 2029.

The possibility of early sales due to unstable administration and rising housing prices is worth monitoring, as many potential buyers are planning to save for the necessary funds.

The green belt mountain area in Gwacheon is being opened up for housing to curb rising prices in Seoul.

There is a debate on whether to prioritize Gwacheon residents or treat all nationwide residents equally for housing applications.

Moving to Gwacheon by 2027 could offer significant benefits, and the speaker plans to share more information in the future.