Over 300,000 Leave as Interest Rates, Policy Shifts Impact Demand; Experts Predict Continued Fluctuations
The number of housing subscription account subscribers decreased by more than 300,000 last year. It has been recording a continuous decline for four consecutive years since 2022.
According to data compiled by the Korea Real Estate Board on the 18th, the total number of housing subscription account subscribers (housing subscription comprehensive savings, subscription deposits, subscription installments, and subscription savings) as of the end of last year was 26,184,107, a decrease of 301,116 (-1.1%) compared to the end of the previous year, 26,485,223.
The number of housing subscription account subscribers peaked at 28,599,279 in June 2022 due to increased subscription demand driven by soaring housing prices and the government’s introduction of preferential subscription accounts for youth. Since then, it has been on a downward trend, decreasing by more than 2.4 million by the end of last year. Annually, the number decreased by 477,486 in 2022, nearly doubling to 855,234 in 2023, and by approximately 553,000 in 2024.
Following interest rate hikes in 2022, housing prices fell significantly, the gap between market bank interest rates and subscription account interest rates widened, sale prices rose, and the expansion of the point-based system led to an increase in people abandoning subscriptions and moving to the existing housing market. Analysts also noted that in popular areas subject to price caps, such as Gangnam, the high point-based system scores reduced the probability of winning, further contributing to the decline in subscription account holders.
However, the rate of decline has slowed for two consecutive years. As of the end of last year, the number of first-priority subscribers decreased by 589,941 to 17,055,826 compared to the previous year (17,645,767), while the number of second-priority subscribers increased by 288,825 to 8,839,456 from 9,128,281.
Although first-priority subscribers, who have held accounts for over two years, continue to decline, the recent rise in housing prices appears to have partially revived demand for subscription accounts. Additionally, changes in policies, such as the income tax deduction limit for subscription accounts (3 million won annually) and expanded special supply benefits for newlywed couples with children, likely contributed to an increase in new subscribers.
Among subscription account types, the number of housing subscription comprehensive savings account holders, the only type accepting new subscriptions, decreased by 194,001 (-0.8%) to 24,978,172 last year from 25,172,173 in 2024. Within this, first-priority subscribers decreased by 485,531 (-3.0%) to 15,950,689 from 16,436,220 in 2024, while second-priority subscribers increased by 291,053 (3.3%) to 9,027,483 from 8,735,953.
Yoon Ji-hae, head of the R114 Real Estate Research Lab, stated, “Although the subscription account ineffectiveness theory is growing due to the sluggish subscription market, the number of subscription account holders will likely fluctuate repeatedly depending on market conditions and changes in government policies.” He added, “The policy to expand public apartments led by the Korea Land and Housing Corporation (LH) is also expected to impact changes in the number of subscription account holders.”
