'Penta Hills W Block 1' pre-sale draws 4,202 housing subscription applications

The model home for Penta Hills W Block 1, a new residential complex in the Jungsan district of Gyeongsan, North Gyeongsang Province, has been flooded with visitors since developer IS Dongseo launched pre-sales, with the company describing the response as overwhelming.

IS Dongseo announced Thursday that the project — located on Block A2-1 of the Jungsan district (Penta Hills) in Gyeongsan — received a total of 4,202 housing subscription applications across special supply and first- and second-priority rounds.

According to subscription results from the Korea Real Estate Board, all 84-square-meter units sold out in the first-priority round, with some unit types recording a competition ratio as high as 18.59 to 1.

Industry observers are reading the results as a signal of shifting sentiment in the Daegu and North Gyeongsang Province housing market.

Analysts say warmth is spreading through the pre-sale market as unsold unit inventories shrink and demand from end-users and asset-rich buyers begins to stir.

Penta Hills W Block 1 also drew relatively strong interest in larger unit types.

Mid- to large-sized units typically see lower competition ratios because fewer buyers hold housing subscription accounts suited for them, but some larger unit types in this project also closed out within the priority rounds.

Industry insiders believe buyers who prefer larger homes were motivated to secure prime unit and floor combinations. Some analysts also forecast that if unsold units remain after the official contract period, first-come, first-served sales could attract continued interest.

The pre-sale terms were structured to ease upfront financial burdens. The initial deposit is set at a fixed amount, and subscription rights can be transferred after the deposit is paid. Buyers also receive an interest-free benefit covering 60 percent of the interim installment payments.

"With unsold inventories falling sharply and now this blockbuster subscription result for Penta Hills W, a fundamental improvement in the Daegu and North Gyeongsang housing market and a broad market rebound are set to kick into full gear," a local real estate expert said.

Another expert said that because cash-ready asset holders and premium buyers seeking spacious living spaces participated in large numbers, "initial contract rates will be extremely high — centered on prime unit and floor combinations — both during the official contract period and when any remaining units shift to first-come, first-served sales."

Penta Hills W Block 1 will comprise nine buildings ranging from six basement levels to a maximum of 59 above-ground floors, with a total of 1,712 units. Winners will be announced July 7, with the official contract period running three days from July 20 to July 22.

The Penta Hills W Block 1 model home is located near the Suseong University intersection in Manchon-dong, Suseong-gu, Daegu.