October Seoul Apartment Winning Bid Rate 112%... "All-Time High"

Gigi Auction October 2020 Auction Trend Report Released
Seoul Apartment Listings Decrease While Values Rise
"Relatively Free from Auction Property Regulations"

View of Seoul apartments from the 63 Building observatory./Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Onyu Lim] In October, the bid-to-ask ratio for Seoul apartments reached an all-time high, highlighting the growing presence of residential properties in the auction market.

According to the ‘October 2020 Auction Trend Report’ released by Gigi Auction on the 9th, there were 14,091 auction cases nationwide, of which 4,787 were successfully bid. The success rate was 34%, the bid-to-ask ratio was 65.5%, and the average number of bidders was 3.6.

In October, residential properties accounted for 6,598 cases nationwide, representing 46.8% of the total. This is the highest figure since the 47% recorded in October last year. The proportion of successful bids for residential properties also reached 47.1%, meaning that half of the auctioned real estate in October was concentrated in residential facilities. The concentration of investors is even more pronounced. Of the total 16,992 bidders who submitted bids in the October auction market, 60%, or 10,151, bid on residential properties. Since the beginning of this year, the monthly proportion of bidders for residential properties has exceeded 60% every month except July and August.

The number of apartment cases in Seoul in October was 59, remaining below 60 for four consecutive months since July. While there is a shortage of properties, investor interest remains high, resulting in a success rate exceeding 70% for four consecutive months?the longest on record?and the October bid-to-ask ratio reached 111.8%, the highest level since records began. The total bid amount for the 44 apartments sold in Seoul in October (44.8 billion KRW) exceeded 10% of the total bid amount for all residential properties (2,255 cases) at 430.9 billion KRW.

A Gigi Auction official explained, "Seoul apartments are truly being treated like ‘royalty’ amid a scarcity of monthly cases that do not even reach 60, combined with price increases and relatively fewer regulations."

In contrast, the success rate for office and commercial facilities in October was 25.3%, continuing a two-month decline from the previous month. The proportion of bidders was 9.4%, and the proportion of successful bid amounts was 18.2%, presenting a stark contrast to residential properties.