Under 200 Million KRW, January-July Winning Bid Rate 111.70%
21.06 Percentage Points Increase Compared to Same Period in 2020
Gyeonggi Province Shows Popularity for Apartments Under 200 Million KRW
[Asia Economy Reporter Hwang Seoyul] The popularity of residential properties in the metropolitan area with appraised values under 200 million KRW is increasing in the auction market. Due to interest rate hikes and economic recession, attention is focused on lower appraised value real estate, resulting in the highest winning bid rates and average number of bidders from January to July in the past three years. In particular, in Gyeonggi Province, demand for apartments under 200 million KRW has increased, causing the winning bid rate to rebound after five months.
According to auction information company Gigi Auction on the 16th, the winning bid rate for residential properties (apartments, multi-family houses, detached houses, etc.) with appraised values under 200 million KRW in the metropolitan area auction market from January to July this year averaged 111.70%. This is an increase of 6.86 percentage points compared to the same period last year (104.84%) and 21.06 percentage points compared to 2020 (90.64%). The average number of bidders during the same period this year was 10.81, also up from 8.70 last year and 9.87 in 2020.
As demand concentrates on relatively affordable real estate due to interest rate hikes and economic recession, the winning bid rate for residential properties under 200 million KRW in the metropolitan area has exceeded 100% since the beginning of this year. It recorded 119.90% in January, 123.70% in February, and 103.00% last month. Considering that the overall winning bid rate for all residential properties in the metropolitan area, regardless of price, was 86.1% last month, this shows the high popularity of residential properties under 200 million KRW. The number of bidders also exceeded 10 in all months except January (8.89) and March (6.89). Especially in February, the number of bidders was 13.52, the highest this year.
In particular, in Gyeonggi Province, demand for apartments under 200 million KRW increased last month among residential properties, causing a slight rebound in apartment winning bid rates. The winning bid rate for apartments in Gyeonggi was 93.7% in May, a sharp drop of 6.9 percentage points from the previous month, and further declined to 90.7% in June. However, it slightly rose by 1.9 percentage points to 92.6% last month compared to the previous month.
The number of bidders for apartments under 200 million KRW in Gyeonggi was also high. Among all auction items nationwide, including apartments, commercial facilities, and land, an apartment in Jung-dong, Bucheon-si, Gyeonggi Province, with an appraised value of 190 million KRW, had the highest number of bidders. This apartment attracted 80 bidders and was sold for 343.68 million KRW (winning bid rate 180.9%). An apartment in Yeoju-si, Gyeonggi Province, with an appraised value of 78 million KRW, also recorded 50 bidders, ranking fourth. This apartment was sold for 81.21 million KRW (104.1%). Additionally, an apartment in Paju-si, Gyeonggi Province, with an appraised value of 166 million KRW, attracted 41 bidders, ranking sixth.
Senior researcher Lee Juhyun of Gigi Auction said, “As the economic recession deepens and financial burdens increase, the popularity of lower-priced residential properties within the metropolitan area seems to continue.”
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