Seoul Apartment Winning Bid Rate Rises... Highest in 1 Year and 11 Months

July 93.7%... "Sold above appraised value due to bid price increase"
National winning bid rate 87.3%, up 0.6% from previous month

The auction price ratio for apartments in Seoul last month reached 93.7%, marking the highest level in 1 year and 11 months.

According to the auction trend report released on the 8th by Gigi Auction, a company specializing in auction and public sale data, the auction price ratio for Seoul apartments last month was recorded at 93.7%. This is a 0.8 percentage point increase compared to the previous month (92.9%) and the highest since August 2022 (93.7%). The auction success rate was 46.7%, down 0.5 percentage points from the previous month (47.2%), and the average number of bidders was 7.8, 0.6 fewer than the previous month (8.4).

Gigi Auction explained, "Recently, due to a decrease in the supply of highly preferred complexes and an increase in asking prices, cases of auctions exceeding the appraised value (100%) have been increasing in the auction market."

Last month, the nationwide apartment auction price ratio was 87.3%, up 0.6 percentage points from the previous month (86.7%). This is the highest figure in over two years since July 2022 (90.6%). The number of nationwide apartment auctions conducted (3,332 cases) was the highest in 3 years and 8 months since November 2020 (3,593 cases). The average number of bidders was 7.9, an increase of 0.3 from the previous month (7.6). The auction success rate was 37.2%, down 2.5 percentage points from the previous month (39.7%).

In the Gyeonggi region, the apartment auction success rate rose 5.6 percentage points from the previous month (45.7%) to 51.3%. This increase was driven by the depletion of most apartments that had failed once. The auction price ratio rose 2.2 percentage points from the previous month (87.3%) to 89.5%. Gigi Auction analyzed that the rising trend in Seoul apartment auction price ratios is spreading to major areas in the Gyeonggi region. The average number of bidders increased by 1.1 from the previous month (10.7) to 11.8, maintaining a high double-digit competition rate for eight consecutive months.

The auction success rate for apartments in Incheon rose 3.1 percentage points from the previous month (29.8%) to 32.9%. The auction price ratio increased by 3.1 percentage points from the previous month (78.6%) to 81.7%, rebounding due to the strong performance of large-scale new apartments. The average number of bidders was 8.2, down 2.0 from the previous month (10.2).

Among the five major metropolitan cities in the provinces, the apartment auction price ratios in Gwangju, Ulsan, and Busan increased. Gwangju's apartment auction price ratio rose 10.4 percentage points from the previous month (84.0%) to 94.4%, marking the highest level in over two years since June 2022 (96.0%). Ulsan (85.8%) and Busan (78.4%) increased by 1.1 percentage points and 0.3 percentage points, respectively. Daejeon (82.0%) fell 4.1 percentage points from the previous month (86.1%), showing a decline for three consecutive months, and Daegu (82.2%) closed down 2.3 percentage points.

Among the eight provinces, Gangwon's apartment auction price ratio rose 5.0 percentage points from the previous month (81.7%) to 86.7%. Following that, Chungnam (85.1%) increased by 4.4 percentage points, and Gyeongnam (80.1%) and Jeonnam (80.4%) rose by 2.6 percentage points and 1.3 percentage points, respectively. Chungbuk (83.8%) maintained a similar level to the previous month. Gyeongbuk (79.9%) fell 2.7 percentage points from the previous month (82.6%), dropping below the 80% mark again after one year, and Jeonbuk (84.2%) declined by 0.9 percentage points.

Among the 27 cases conducted, 9 were successful in Jeju, with an auction price ratio of 79.0%, and in Sejong, 15 out of 19 cases were successful, with an auction price ratio of 83.2%.