What Is the Korean Pre-Sale (분양) System?
Korea's apartment pre-sale system (분양제도) allows developers to sell residential units to buyers before — sometimes years before — construction is complete. Buyers pay in staged instalments during the construction period, with the final balance due at the time of move-in.
This system benefits developers by providing construction financing and benefits buyers by allowing them to lock in a purchase price before the building is finished. However, it also carries risks: market prices can change, and delays can occur.
Types of Pre-Sale Supply
Not all pre-sale units are open to everyone. The supply is divided into two main categories:
| Type | Korean Term | Who It's For |
|---|---|---|
| General Supply | 일반공급 | Any eligible applicant who meets basic requirements |
| Special Supply | 특별공급 | First-time buyers, newlyweds, large families, seniors, and others in priority categories |
Special supply slots are allocated first, then the remaining units go to the general pool. If you qualify for a special supply category, it is usually advantageous to apply there, as competition is typically lower.
The청약 (Application) Savings Account
To apply for most pre-sale developments, you must hold a 주택청약종합저축 (Housing Subscription Comprehensive Savings) account with a recognised bank. Key points:
- Monthly contributions build your subscription score (청약 점수)
- The longer you hold the account and the more consistently you contribute, the higher your score
- Score thresholds for popular developments in Seoul can be very high — patience is essential
- Account holders can check their current score through the APT2You portal or their bank's app
The Application and Lottery Process
- Announcement (공고): The developer publishes the official pre-sale notice, including unit types, prices, application dates, and eligibility requirements.
- Application period (청약 접수): Typically a few days. Applications are made online through APT2You or at designated banks.
- Results (당첨자 발표): Winners are announced within days of the application deadline. Oversubscribed units are decided by lottery among eligible applicants with the same score.
- Contract signing (계약): Winners have a short window (usually 3–5 days) to sign the purchase contract and pay the initial deposit.
- Intermediate payments (중도금): Paid in instalments — typically six payments during the construction period, often financed via a collective loan (중도금 집단대출).
- Move-in and final payment (잔금): The remaining balance is paid when keys are handed over (입주).
Important Eligibility Rules to Know
Eligibility for pre-sale applications in regulated areas (규제지역) can be complex. Common requirements include:
- Area of residence: Priority is often given to residents of the same city or district
- Home ownership status: Households that already own a home may be restricted or receive lower priority
- Account holding period: Minimums vary by region and development type
- Resale restrictions (전매제한): In regulated zones, buyers may not be allowed to sell their pre-sale contract or the finished unit for a set number of years
Is the Pre-Sale System Right for You?
Pre-sale purchasing suits buyers who are comfortable with a multi-year wait, can manage staged payments, and have a long-term horizon. It is not ideal for those needing housing immediately or who prefer to see a finished property before committing. Always consult the full official announcement (입주자모집공고) and consider speaking with a licensed real estate agent (공인중개사) before applying.