[Naejib Road] 40-Pyeong Apartment in Sillim-dong, Bought at Auction for '640 Million Won'

[Asia Economy Reporter Ryu Tae-min] This edition of ‘Naejip Road’ introduces an apartment auction property. The 119㎡ apartment in Sillim Hyundai, located in Sillim-dong, Gwanak-gu, Seoul, has a low price entry barrier, making it worth considering. The original appraised value was 1.262 billion KRW, but after three failed auctions, the minimum bid price dropped to 646.14 million KRW.

The 4th auction is scheduled for January 11 next year. The minimum bid price has decreased compared to the 3rd failed auction, so it is expected that bidders’ interest will increase. However, as the auction market has recently lost popularity, there is still a possibility of another failed auction. If the auction fails this time, the minimum bid price for the 5th auction will drop to 516.91 million KRW. ‘Naejip Road’ thoroughly analyzed the points to be cautious about in this apartment auction through a proxy site visit.

Exterior view of Sillim Hyundai Apartment (Photo by Ryu Taemin)

Mortgage Rights Cancelled, No Tenants or Unpaid Fees

First, the most important aspect in court auctions is rights analysis. This apartment is a voluntary auction property with Doorie AMC Loan as the creditor. There are a total of 15 registrations on the registry, including mortgages and provisional seizures. All mortgage rights will be cancelled once the auction is completed.

There are no tenants. This means there is no separate deposit that the successful bidder must assume. Currently, the property is registered as the debtor’s residence, but occupancy status has not been confirmed. As of July, it was confirmed that there are no unpaid management fees (including electricity, water, heating, etc.) for this apartment.

Scenery of Dorimcheon near Seoul National University Venture Town Station. (Photo by Ryu Taemin)

Quiet Residential Area... Prospects for Development Benefits

A site visit was also conducted on the 9th. The complex is located about 300 meters from Sillim Line Seoul National University Venture Town Station, approximately a 5-minute walk. Also, taking the village bus that passes through the complex allows you to get off right in front of Sillim Station on Seoul Subway Line 2 within 10 to 15 minutes. Dorimcheon Stream flows nearby.

The Sillim-dong area where the complex is located has many residential facilities and lacks towering apartments, giving a stable feeling. Nearby is Sillim 1 District, a candidate site for rapid integrated development, raising expectations for future infrastructure improvements. Additionally, there are ample rest areas such as Sinhwa Children’s Park and Yangsan Children’s Park scattered around.

The commercial area is somewhat lacking. There is no large supermarket nearby where various shopping needs can be met at once. Only a small mart selling basic daily necessities is located right next to the complex. It is said that Hanaro Mart can be used by going toward Exit 1 of Seowon Station.

There are also school districts nearby. This complex is assigned to Seoul Sinseong Elementary School, about 500 meters away by address, and nearby are Shingwan Middle School and Mirim Girls’ High School.

The complex was completed in 1993 and is now in its 29th year. It consists of 1,634 households in 12 buildings, with a maximum height of 15 floors. The auction property is located on the 14th floor of Building 103, with 4 rooms and 2 bathrooms. The total number of parking spaces is 2,124 (1.29 spaces per household), providing ample parking with both above-ground and underground parking lots.

Entrance view of the underground parking lot at Sillim Hyundai Apartment (Photo by Ryu Taemin)

Sillim Line Transportation Benefit... 5-Minute Walk from Seoul National University Venture Town Station

This complex also benefits from transportation improvements. The Sillim Line opened last May. The Sillim Line is a 7.8 km route connecting 11 stations from Gwanaksan (Seoul National University) Station to Yeouido Saetgang Station. It takes 16 minutes from the starting station to the terminus. The usual bus commute to Yeouido, which took about 35 minutes, is reduced to less than half.

The minimum bid price, which is lower than the market price, is also an advantage. A property of the same size on the 8th floor within the complex was sold for 1.3 billion KRW 1 year and 3 months ago, in September last year. Simply comparing this, winning the auction at the minimum price would allow you to purchase a home more cheaply than buying outright.

However, transactions have slowed as the real estate market downturn has begun. According to the Ministry of Land, Infrastructure and Transport’s real transaction price inquiry, the last transaction was on March 30. A representative from nearby A Real Estate Agency said, “It has never been a very active trading area,” adding, “However, recently, as expectations for development benefits have increased, demanders’ interest seems to have risen somewhat.”