As Ilsan Housing Prices Soar, Auction Market Heats Up... 90 Units Sold at Tanhyeon Zenith, Unsold for 10 Years

Rising Apartment Prices Driven by Transportation Benefits Boost Both Sales and Auction Markets
144 Auctions Completed in Ilsanseo-gu This Year with an Average Winning Bid Rate of 126%
‘10-Year Unsold’ Ilsan Doosan We've the Zenith Also Saw 90 Units Sold This Year
Winning Bids Continue to Exceed Appraised and Market Prices

[Asia Economy Reporter Ryu Tae-min] The upward trend in the Ilsan apartment market continues due to consecutive transportation benefits such as the Metropolitan Area Express Train (GTX) and the connection of the Seohae Line. The auction winning bid rates for apartments around the terminus station of the GTX-A line in Ilsan New Town 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 26th, a 117㎡ (exclusive area) apartment in Cheongwon Byeoksan Blooming Complex 3 in Gajwa-dong, Ilsanseo-gu, Goyang-si, Gyeonggi-do, auctioned on the 25th of this month, was sold for 458.99 million KRW. This price is more than 150 million KRW higher than the appraised value of 300 million KRW. In fact, this winning bid price is higher than the market price. The same-sized apartment was reported to have been traded for 450 million KRW in January.

Similarly, a 121㎡ apartment in Ilsan Doosan We've The Zenith in Tanhyeon-dong, auctioned on the 20th, was sold for 783.2 million KRW, which is 36% higher than the appraised value of 574.7 million KRW. This property, which was sold for about 5 million KRW higher than the market price, attracted 24 bidders.

Due to the GTX benefits, apartments in the Ilsanseo-gu area are recording record high prices in auctions. The average number of bidders for 144 auctions held this year reached 8.6, and the average winning bid rate compared to the appraised value was 126.6%. The auction industry explains that this is the first time the average winning bid rate for apartments in Ilsanseo-gu has exceeded three digits.

In particular, 90 units of Ilsan Doosan We've The Zenith 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, transactions did not occur in the market, leading to an accumulation of urgent sale properties. Currently, 34 units remain on the market, and they are expected to be sold out within the second half of this year.

The representative of A Real Estate Agency in Tanhyeon-dong said, "Since last year, transportation benefits such as the GTX A line, Seohae Line connection, and Line 3 extension have been continuously announced, causing the popularity of apartments in the Ilsan area to soar," adding, "Recently, the cancellation of the GTX-D line connection between Gimpo and Gangnam is expected to increase demand for this area even more."

Senior researcher Lee Joo-hyun of Gigi Auction said, "As apartment prices in Seoul have skyrocketed recently, demand seems to have shifted to the metropolitan area outside Seoul," and added, "Not only the sales market but also the auction market, which is considered relatively affordable, is heating up."