The number of subscription savings account holders has decreased to the lowest level this year. This decline is attributed to reduced accessibility to subscription housing lotteries due to soaring pre-sale prices and increased financial burdens from loan regulations, leading to a rise in account cancellations.
According to data from the Korea Real Estate Board’s Subscription Home platform on the 9th, as of September, the number of subscription savings account holders — including Housing Subscription Comprehensive Savings, Subscription Savings, Subscription Installments, and Subscription Deposits — stood at 26,349,934, marking the lowest figure this year.
Despite government policies to maintain account holders, such as raising interest rates for subscription savings accounts — which serve as a funding source for the Housing and Urban Fund — and expanding income tax deduction limits, the number of subscription savings account holders continues to decline. Subscription savings account holders fell from 28,599,279 in June 2022, just before housing prices began to drop, to 26,433,650 in February 2025, a continuous decrease over 2 years and 8 months. During this period, the number of subscription savings account holders decreased by 2,165,629.
This year, the number of subscription savings account holders briefly increased in March (26,430,885) and August (26,373,269) but has since resumed its downward trend.
As subscription savings account holders decline, the competition rate for subscription lotteries is also falling. According to data compiled by Real Today, a real estate research firm, using data from the Korea Real Estate Board’s Subscription Home platform, the average first-priority subscription competition rate for apartments nationwide from January to October this year was only 7.1 to 1. This is one-fourth of the 2020 level (26.8 to 1).
The decline in subscription savings account holders is due to soaring pre-sale prices and higher winning point thresholds, reducing the probability of winning a lottery. According to Real Estate R114, the average pre-sale price per 3.3 square meters for private apartments nationwide was 21.18 million Korean won as of September this year. The average pre-sale price has risen annually: 13.03 million Korean won in 2021, 15.30 million Korean won in 2022, 18.15 million Korean won in 2023, and 20.69 million Korean won last year. The combined effects of rising material and labor costs have increased the financial burden on actual demand buyers, even if they win a lottery.
In the capital region, the government’s June 27 mortgage regulations, which limit mortgage loans for property purchases to 600 million Korean won, and the October 15 measures, which designate all of Seoul and 12 areas in Gyeonggi Province as regulated zones (adjustment target areas and speculative overheating districts), have made it even harder to purchase homes through loans. The loan-to-value ratio (LTV) has been significantly reduced from 70% to 40%. Additionally, mortgage loans for property purchases are restricted based on pre-sale prices when paying the final installment. The loan limits are 600 million Korean won for properties under 1.5 billion Korean won, 400 million Korean won for properties between 1.5 billion and 2.5 billion Korean won, and 200 million Korean won for properties exceeding 2.5 billion Korean won. ‘Gap investments,’ where buyers use jeonse deposits to cover final payments, have also been completely blocked.
As a result, the number of subscription savings account holders is expected to continue declining. With pre-sale prices likely to keep rising and the pre-sale price cap system requiring higher subscription points for winning lotteries in high-profit complexes, demand for maintaining subscription savings accounts is expected to decrease.
