'Ultra-Luxury Apartment' Hannam The Hill Achieves Highest Court Auction Price This Year

First Time Winning Bid in Court Auction
Winning Bid 3.8811 Billion KRW
Higher Than Appraised Value but Several Hundred Million KRW Lower Than Market Price
High-End Apartments Head to Auction as Gyeonggi Market Freezes

Hannam The Hill, Yongsan-gu, Seoul (Photo by Yonhap News)

[Asia Economy Reporter Onyu Lim] The ultra-luxury apartment 'Hannam The Hill' in Hannam-dong, Yongsan-gu, Seoul, was sold at the highest price in court auctions this year.

According to the industry on the 22nd, at the bidding held at the Seoul Western District Court the day before, a 177㎡ (exclusive area) unit on the 4th floor of Hannam The Hill was sold for 3.8811 billion KRW. This is the highest auction price for an apartment nationwide in court auctions conducted this year. The winning bid rate was 107%. There were two bidders, and the runner-up bid was 3.86522 billion KRW.

The winning bid price is higher than the appraised value of 3.64 billion KRW but about 320 million KRW lower than the current asking price (4.2 billion KRW) for the same area. Last year, units of the same size were sold at auction for between 3.29 billion and 3.6 billion KRW.

Previously, Hannam The Hill was also listed for court auction in April and August last year, but the auctions did not proceed as lawsuits were withdrawn. The 244㎡ unit of Hannam The Hill has held the second-highest official price among nationwide multi-family housing since 2017. This is the first time this apartment has been sold through a court auction.

Meanwhile, as real estate regulations such as loans have tightened and the real estate market has cooled due to the impact of the novel coronavirus (COVID-19), high-priced apartments are increasingly appearing in court auctions. According to Gigi Auction, as of this day, there are more than 10 ultra-luxury apartments with an appraised value of over 1.5 billion KRW scheduled for court auctions in the first half of this year.

These include Galleria Foret in Seongsu-dong 1-ga, Seongdong-gu, Seoul, with 217㎡ (appraised value 4.33 billion KRW) and 194㎡ (3.63 billion KRW); Banpo Jugong 1 Complex 140㎡ (4.19 billion KRW) in Banpo-dong, Seocho-gu; Mark Hills 2 Complex 192㎡ (4.57 billion KRW) in Cheongdam-dong, Gangnam-gu; Cheongdam Dongyang Paragon 224㎡ (3.81 billion KRW) in Cheongdam-dong, Gangnam-gu; Preston 243㎡ (2.54 billion KRW) in Bangbae-dong, Seocho-gu; Elysia 236㎡ (1.9 billion KRW) in Pyeongchang-dong, Jongno-gu; Lotte Castle Galaxy 133㎡ (1.82 billion KRW) in Jamwon-dong, Seocho-gu; Rescence 84㎡ (1.72 billion KRW) in Jamsil-dong, Songpa-gu; Galleria Palace 151㎡ (1.59 billion KRW) in Jamsil-dong; and World Meridian 128㎡ (1.64 billion KRW) in Ichon-dong, Yongsan-gu.

The 217㎡ unit of Galleria Foret, which was auctioned the day before, failed once and the auction will resume on June 1 with a minimum bid price of 3.464 billion KRW.