"Let's Buy Cheaper Than Seoul Apartment Prices"... People Flocking to Auctions

Seoul Apartment Auction Success Rate Hits 80%... Highest Ever
36 Out of 45 Cases Last Month Found New Owners
Number of Bidders Per Case Also Rising for 3 Consecutive Months

As apartment prices in the Seoul metropolitan area continue to rise, demand for relatively affordable apartments is pouring into the auction market, pushing the monthly winning bid rate for Seoul apartments above 80%.

[Asia Economy Reporter Ryu Tae-min] The court auction success rate for apartments in Seoul and the metropolitan area in February reached an all-time high.

According to Gigi Auction, a court auction specialist company, out of 45 Seoul apartments auctioned last month, 36 were successfully sold, resulting in a success rate (number of successful auctions compared to total auctions) of 80%. This is the first time the monthly success rate for Seoul apartments has exceeded 80%. The previous highest rate was 79.5% recorded in October 2018.

The success rate for Seoul apartments, which was 52.8% in December last year, rose to 75.0% in January and then surpassed 80% in February. The average number of bidders also increased for three consecutive months, from 5.8 in November last year to 9.2 in December, 10.8 in January this year, and 11.7 last month.

The success rate for apartments in the metropolitan area also hit a record high of 74.7% last month. Typically around 40-50%, the metropolitan area apartment success rate rose continuously for four months, from 52.5% in October last year to 59.3% in November, 67.6% in December, 74.3% in January this year, and 74.7% in February.

This rise in success rates appears to be due to a decrease in available properties as court auctions have been difficult to proceed with amid the prolonged COVID-19 pandemic, while the number of bidders has steadily increased due to expectations of rising housing prices. With Seoul apartment prices continuing to rise, demand remains strong for acquiring apartments at relatively affordable prices.

Oh Myung-won, a researcher at Gigi Auction, explained, "As the number of metropolitan area apartments available in the auction market decreases, their scarcity value has increased. Since there are not enough properties in the sales market either, demand for purchasing homes is flowing into the auction market."