[Asia Economy Reporter Hwang Seoyul] The apartment auction market is in the dead of winter. Last month, the Seoul apartment winning bid rate fell compared to the previous month, setting a new all-time low. The nationwide apartment auction winning bid rate also hit its lowest point this year.
According to the 'November Auction Trend Report' released on the 6th by Gigi Auction, a court auction specialist company, the winning bid rate for Seoul apartments was 14.2%, down 3.6 percentage points from the previous month (17.8%), setting a new all-time low. The winning bid price ratio was 83.6%, down 5.0 percentage points from the previous month (88.6%), marking a decline for five consecutive months, while the average number of bidders increased by 0.9 from the previous month (2.6). Gigi Auction analyzed, "As the sales market remains sluggish and the base interest rate hike trend continues, the buying momentum in the apartment auction market has also disappeared."
The situation is similar nationwide. The nationwide apartment winning bid rate was 32.8%, down 3.7 percentage points from the previous month (36.5%), hitting the lowest point this year. This is the lowest figure in over 13 years since March 2009 (28.1%). The winning bid price ratio was 78.6%, down 5.0 percentage points from the previous month (83.6%), breaking below the 80% mark for the first time since May 2013 (79.8%). The average number of bidders was 5.3, similar to the previous month.
Excluding Seoul, the auction indicators in the metropolitan area showed somewhat contrasting results. The Incheon apartment winning bid rate recorded an all-time low of 22.9%. The winning bid price ratio also dropped 9.0 percentage points from the previous month (78.7%) to 69.7%, showing the largest decline nationwide. The average number of bidders was 8.4, similar to the previous month.
On the other hand, the Gyeonggi apartment winning bid rate rose 8.9 percentage points from the previous month (31.9%) to 40.8%, and the average number of bidders increased by 1.5 from 5.8 to 7.4. Gigi Auction analyzed the rise in Gyeonggi's auction indicators as "a rebound in winning bid rate and average bidders due to many bidders flocking to apartments priced at 200 million KRW appraisal value in the outskirts of Gyeonggi, where price burdens are lower." However, Gyeonggi's winning bid price ratio fell 2.1 percentage points from the previous month (81.0%) to 78.9%.
The winning bid price ratios for apartments in the five major provincial metropolitan cities all declined. Ulsan (77.9%) dropped 7.9 percentage points from the previous month (85.8%), and Daejeon (71.0%) fell 7.7 percentage points from the previous month (78.7%). Daegu (70.3%) and Busan (78.5%) decreased by 6.3 and 5.6 percentage points, respectively. Gwangju (80.4%), which fell 1.8 percentage points compared to the previous month (82.2%), barely maintained the 80% range but has been declining for seven consecutive months.
Among the eight provinces, Gangwon (83.8%) and Chungbuk (78.4%) saw their winning bid price ratios drop 5.9 percentage points each compared to the previous month. Gyeongnam (81.8%) fell 3.2 percentage points, Gyeongbuk (81.4%) dropped 2.9 percentage points, and Chungnam (77.9%) declined 2.2 percentage points.
On the other hand, Jeonnam (79.7%) rose 1.0 percentage point from the previous month, and Jeonbuk (88.5%) recorded the highest winning bid price ratio nationwide.
Sejong, where two cases were won, recorded 68.9%, and Jeju had two cases but both were passed without bids.
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