Jeju and Gangwon Detached Houses Heat Up the Auction Market

Increased Tourism Demand Boosts Investment Expectations
Jeju-si Records 226% Winning Bid Rate
Samcheok-si Housing Attracts 24 Bidders

[Asia Economy Reporter Hwang Seoyul] A detached house in Jeju Island that went up for auction sold for twice its appraised value. More than 20 bidders competed for a detached house in Gangwon Province. Interest is focused on detached houses in Jeju and Gangwon, which have abundant tourism demand and good accessibility to natural environments, leading to a series of cases showing high winning bid rates.

According to real estate auction specialist Gigi Auction on the 14th, a detached house (building exclusive area 84㎡) in Gujwa-eup, Jeju City, Jeju, which was sold on the 31st of last month, recorded a winning bid rate of 226.73%. Despite only the building being auctioned excluding the land, it was sold at a high price. In April, a detached house in Geundeok-myeon, Samcheok-si, Gangwon (land 128㎡, building 62.9㎡) recorded a winning bid rate of 182.74%, attracting 24 bidders. The winning bid rate is the ratio of the winning bid price to the appraised value; exceeding 100% means the winning bid price is higher than the appraised value.

The winning bid rates for detached houses in Jeju and Gangwon regions surged from April this year. Until March this year, Gangwon showed winning bid rates in the 80% range and Jeju in the 70% range, but in April, they rose to 103.30% and 95.90%, respectively. In May, Gangwon recorded 92.60% and Jeju 88.50%, maintaining high figures.

The main reason for the popularity is the increased tourism demand during the post-COVID-19 recovery period, which raised investment expectations. The detached house sold in Gujwa-eup, Jeju, is near facilities for tourism demand such as accommodations, cafes, and restaurants. Bidding demand also gathers when natural environments like mountains and the sea are within walking distance.

In the case of the detached house in Geundeok-myeon, Samcheok-si, which was popular among bidders, Chogok Beach is just a one-minute walk away. The detached house in Daepo-dong, Sokcho-si, Gangwon (land 380㎡, building 100.3㎡), which recorded a winning bid rate of 155.57% in the same month, is also a two-minute walk to Oeongchi Beach.

Lee Juhyun, senior researcher at Gigi Auction, stated, "Detached houses in Gangwon and Jeju are still at relatively affordable price levels, allowing for small-scale investments, so their popularity is expected to continue."