Gyeonggi-do Gunpo Sanbon Ureuk Jugong 7 Complex 59㎡ Sold for 389 Million KRW
About 70 Million KRW Higher Than Last Month's Highest Actual Transaction Price
As Many as 47 Bidders Participated
Ansang Sangnok-gu Up 11.4 Percentage Points in One Month
As Su-yong Declines, Gyeonggi and Incheon Values Begin to Rise
[Asia Economy Reporter Lim On-yu] Small apartments in the first-generation new towns built 26 years ago were auctioned at prices more than 30% higher than their appraised values. Industry experts observe that the balloon effect of the February 20 real estate measures is spreading to the auction market as well.
According to auction information company Gigi Auction on the 27th, at an auction held on the 25th at the Anyang branch of Suwon District Court, a 59㎡ (exclusive area) apartment in Wooruk Jugong Complex 7, Sanbon-dong, Gunpo-si, Gyeonggi Province, was sold for 132% of the appraised value, amounting to 389 million KRW. This price is about 70 million KRW higher than the highest actual transaction price of this apartment last month. A total of 47 bidders participated in this auction.
The industry interprets this high-price auction as the balloon effect of the February 20 measures, aimed at curbing housing price increases in the so-called 'Suyongseong' (Suwon, Yongin, Seongnam) area, beginning to manifest in the auction market, which serves as a barometer of the real estate market.
In fact, recently, the winning bid rates and competition rates in apartment auctions in non-regulated areas of Gyeonggi Province such as Gunpo, Bucheon, and Ansan have been noticeably rising.
According to Gigi Auction, the average winning bid rate for apartments in Gunpo rose by 12.5 percentage points from 97.5% last month to 110% this month. The winning bid rate refers to the ratio of the winning bid price to the appraised value. The average number of bidders also increased fourfold from 6.3 to 25.2. In particular, Sanbon is identified as one of the candidates where the balloon effect of the February 20 measures is expected to appear, along with Namyangju, Gwangmyeong, Osan, Dongtan, Pyeongtaek, Gimpo, Bucheon, Geomdan, Ansan, Siheung, and Hwaseong, due to transportation benefits such as the Seoul Metropolitan Area Express Train (GTX)-C line. In Ansan Sangnok-gu as well, the winning bid rate rose by 11.4 percentage points from 80.6% last month to 92% this month.
The balloon effect is a sentiment detected throughout the auction market. On the 20th, at the Bucheon branch of Incheon District Court, a 101㎡ apartment in Sarang Village, Sang-dong, Bucheon-si, Gyeonggi Province, was sold for 103% of the appraised value, amounting to 455 million KRW. This property had failed to sell at auction last month, but attracted 30 bidders when auctioned again about a month later.
Oh Myung-won, a researcher at Gigi Auction, said, "Sanbon is a region that is hard to say is geographically inferior compared to Anyang Manan-gu or Uiwang, which are included in the February 20 measures. This is the first time the winning bid rate has reached the 130% range, and it is analyzed that the balloon effect is becoming visible."
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