GTX-A Line and Line 3 Extension Boost Transportation... Reverse Wind Effect from Regulations in Gimpo and Paju
Apartments Around Ilsan New Town See Court Auction Winning Bid Rates Soar
Sold at 79% Above Appraised Value
'10-Year Unsold' Zenis Apartments, 28 Units Sold at Auction This Year
[Asia Economy Reporter Ryu Tae-min] The positive impact of the Metropolitan Area Express Railway (GTX) is changing the trends in court auctions and the market for severely unsold apartments. Auction winning bid rates for apartments around Ilsan New Town, where the GTX-A line terminal station is located, are soaring, and demand is also pouring into unsold apartments that have not been sold for over 10 years.
According to Gigi Auction on the 19th, a 173.8㎡ (exclusive area) apartment in High Park City Ilsan Famille 4 Complex, Deok-i-dong, Ilsanseo-gu, Goyang-si, Gyeonggi-do, which was auctioned on the 26th of last month, was sold for 830 million KRW. This amount is 172 million KRW higher than the appraised value of 658 million KRW. In fact, the winning bid price is higher than the market price. The same size apartment was reported to have been sold for 710 million KRW in October last year.
A similar auction result was seen for a 59㎡ apartment in Hugok Village Geonyeong 15 Complex, Ilsandong, Ilsanseo-gu, auctioned on the 9th of this month. This property was sold for 468.99 million KRW, which is 79% higher than the appraised value of 262 million KRW. It is reported that 33 people bid on this property.
Due to the GTX boom, apartments in Ilsanseo-gu are recording record high prices in auctions. The average number of bidders for 42 auctions held this year reached 8.6, and the average winning bid rate compared to the appraised value was 109.9%. According to the auction industry, this is the first time the average winning bid rate for apartments in Ilsanseo-gu has reached triple digits.
In particular, in Ilsan Dusan We’ve The Zenith in Tanhyeon-dong, Ilsanseo-gu, 28 units have found new owners through auctions this year alone. This apartment complex, first sold in 2009, had unresolved unsold units for over 10 years, and until mid-last year, there were no transactions in the market, leading to an accumulation of urgent sale properties.
The representative of A Real Estate Agency in Tanhyeon-dong said, "As Gimpo and Paju were designated as regulated areas, a reverse wind effect appeared, and due to transportation benefits such as the GTX-A line, the West Sea Line connection, and the extension of Line 3, the popularity of apartments in the Ilsan area is soaring."
Oh Myung-won, senior researcher at Gigi Auction, said, "Recently, as Seoul apartment prices have risen too much, demand seems to have shifted to the metropolitan area. Especially in places where transportation benefits like GTX have poured in, the auction fever is intense."
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