Auction on Fire... Winning Bid Rate and Winning Bid Price Rate Reach Consecutive 'Record Highs'

February Winning Bid Rate 43.5%, Winning Bid Price Ratio 77.9%, Average Bidders 4.3
Seoul Apartment Winning Bid Rate 80% "No Listings, Sold Immediately Upon Release"

[Asia Economy Reporter Ryu Tae-min] The frozen real estate auction market is heating up again. Last month, the nationwide auction market recorded the highest-ever winning bid rates regardless of residential or office facilities.

According to the 'February 2021 Auction Trend Report' by Gigi Auction, a court auction specialist company, the total number of auctions nationwide was 9,983, of which 4,346 were successfully bid. The winning bid rate was 43.5%, the winning bid price ratio was 77.9%, and the average number of bidders was 4.3.

The 43.5% winning bid rate in February is the highest ever. The previous highest was 43% in July 2017. The overall winning bid price ratio also surpassed the previous record with 90.6%.

The Seoul metropolitan area apartments also showed record-breaking winning bids. Last month, the winning bid rate for apartments in Seoul was 80%, surpassing the previous highest (79.5% in October 2018) to set a new record. The winning bid price ratio for Gyeonggi apartments was 113.9%, a new record 2.4 percentage points higher than December 2006 (111.5%). Among the 271 Gyeonggi apartments sold last month, more than half, 146, were sold at prices higher than the appraised value.

The total number of bidders increased for two consecutive months, reaching 18,000, and office and commercial facilities are also gaining momentum. Last month, the total number of bidders for office and commercial facilities was 2,013, surpassing 2,000 for the first time in 4 years and 4 months since October 2016 (2,289).

The proportion of office and commercial facilities in the total number of bidders, which had been in single digits from September to December last year, increased to 10.4% in January and 11.2% in February. It appears that investors in office and commercial facilities are gradually returning. The winning bid rate for office and commercial facilities also recorded the highest figure since April 2017.

Oh Myung-won, a researcher at Gigi Auction, explained, “Since last year, due to the prolonged COVID-19 situation, court auctions have been difficult to proceed, and there is a very high demand from buyers who want to purchase. In the case of Seoul apartments, the number of auctions is only half of what it was before COVID-19, so properties are sold as soon as they come on the market.”