The number of subscribers to the subscription savings account has halted its decline for the first time in 2 years and 9 months. It appears that the government has expanded subscription benefits for young people and newlywed couples, leading to an increase in new subscribers.
On the other hand, the number of long-term holders of subscription savings accounts, who have been subscribed for a long time and paid large amounts, decreased by more than 16,000 in just one month. The number of people who have maintained a subscription savings account for over 15 years has fallen to the 700,000 range. Analysts suggest that the decrease in long-term holders is attributed not only to natural attrition due to winning the lottery but also to the prolonged economic downturn, a reduction in the supply of new developments, and high sale prices.
According to the Korea Real Estate Board on the 20th, the number of subscribers to the subscription savings account last month was 26,438,085, an increase of 4,435 from the previous month (26,433,650).
The number of subscription savings account subscribers recorded 28,599,279 in June 2022 and had been declining continuously until February of this year, but it rebounded last month for the first time.
The increase in the number of subscription savings account subscribers is interpreted as a result of the recent increase in subscription savings account benefits and the rise in new subscribers. To reduce the number of subscribers canceling their accounts, the government has been steadily raising subscription savings account interest rates. After raising the rate by 0.3 percentage points in November 2022, it increased the rates by 0.7 percentage points and 0.3 percentage points in August 2023 and September last year, respectively. Starting this year, the income deduction limit for subscription savings accounts was raised to 3 million won annually.
In particular, subscription benefits have been expanded for young people and newlywed couples. Half of the general supply in public sales is prioritized for newborn households, and the proportion allocated to newlywed and expecting families has been increased during private housing sales. The subscription requirements have also been relaxed, giving households with children born an additional opportunity for special supply.
An industry official said, “The government has paid a lot of attention to subscriptions for young people and newlywed couples,” and noted, “As subscription rates rise and support for special supply for newborns increases, it seems that the expectation has led to more subscribers to the subscription savings account.”
While the total number of subscription savings account subscribers has increased, the number of first-tier subscribers, who have relatively long subscription periods and make large payments, decreased by more than 16,000 in just one month. Last month, the number of first-tier subscription savings account subscribers was 17,563,306, down 16,165 from February (17,576,471).
The number of people who have held subscription savings accounts for the long term has dropped to the 700,000 range. The number of subscribers who have held their accounts for over 15 years was recorded at 797,323 last month, a decrease of nearly 5,000 from the previous month (800,892).
The reduction in long-term subscribers has been analyzed as a result of a recent decrease in the number of new developments and high sale prices, leading to discussions about the 'uselessness of subscription savings accounts.' It has been suggested that there are cases where individuals cancel their accounts because they cannot afford the high sale prices even if they win the lottery. According to the Housing and Urban Guarantee Corporation (HUG), the sale price per 3.3 square meters of private apartments nationwide was recorded at 19.05 million won in February.
Additionally, there are cases where the number of long-term subscribers naturally decreases due to winning the lottery. An industry official said, “Long-term subscribers have high lottery points, so there is a natural decrease due to winning,” and added, “Given the recent economic downturn and soaring sale prices, along with the trend of focusing on popular complexes where the sale price ceiling system applies, it seems that many are canceling their subscription savings accounts as the benefits of buying a home through subscriptions diminish.”