Seoul Apartment Winning Bid Rate Hits Highest in 2 Years and 1 Month... 95.5%

Nationwide Apartment Winning Bid Rate at 86.2%
Jeju Hits Lowest in Over 4 Years at 69.5%

The bid-to-price ratio for apartments in Seoul reached its highest level in 2 years and 1 month, driven by rising sale prices. Meanwhile, the bid-to-price ratio for some apartments in provincial areas dropped sharply, resulting in a significant gap between the metropolitan area and non-metropolitan regions.

Apartment viewed from Yongsan-gu, Seoul on January 5. Photo by Kang Jin-hyung

According to the auction trend report released on the 8th by Gigi Auction, a real estate auction and public sale data specialist company, the number of apartment auctions nationwide last month was recorded at 3,168 cases. The winning bid rate rose by 5.6 percentage points from the previous month (37.2%) to 42.8%, while the bid-to-price ratio fell by 1.1 percentage points from the previous month (87.3%) to 86.2%.

The apartment auction market in the metropolitan area showed an upward trend. Last month, the winning bid rate for apartments in Seoul was 47.3%, up 0.6 percentage points from the previous month (46.7%). The bid-to-price ratio recorded 95.5%, an increase of 1.8 percentage points from the previous month (93.7%). This is the highest figure since July 2022 (96.6%). Apartments sold above the appraised value (100%) accounted for 30% (43 cases) of all winning bids in Seoul (140 cases). Gigi Auction analyzed that “the rise in actual transaction prices and asking prices in the sales market influenced this.” The average number of bidders was 7.0, down 0.8 from the previous month.

The winning bid rate for apartments in Gyeonggi Province was 43.3%, down 8.0 percentage points from the previous month (51.3%). The winning bid rate declined due to a surge in new cases mainly in outer metropolitan areas such as Namyangju and Siheung. The bid-to-price ratio rose by 0.7 percentage points from the previous month (89.5%) to 90.2%, entering the 90% range for the first time since July 2022 (92.6%). The average number of bidders was 10.5, down 1.3 from the previous month (11.8).

The winning bid rate for apartments in Incheon rose by 9.6 percentage points from the previous month (32.9%) to 42.5%, recovering to the 40% range for the first time in six months since February. The winning bid rate rebounded as some apartments in Michuhol-gu, where many auctions were held due to the impact of rental fraud, were sold at low prices. The bid-to-price ratio recorded 80.8%, down 0.9 percentage points from the previous month (81.7%). The average number of bidders remained similar at 8.0.

Among the five major metropolitan cities in the provinces, the bid-to-price ratios for apartments in Daejeon and Daegu rose slightly. The bid-to-price ratio for apartments in Daejeon increased by 1.8 percentage points from the previous month (82.0%) to 83.8%, and Daegu (82.9%) rose by 0.7 percentage points from the previous month (82.2%), ending a three-month decline. On the other hand, the bid-to-price ratio for apartments in Gwangju fell by 10.2 percentage points from the previous month (94.4%) to 84.2%. Busan dropped by 4.7 percentage points from the previous month (78.4%) to 73.7%, hitting its lowest point in 13 months, and Ulsan (81.7%) fell by 4.1 percentage points.

Among the eight provinces, the bid-to-price ratio for apartments in Jeonnam rose by 5.5 percentage points to 85.9%. Jeonbuk (88.4%) increased by 4.2 percentage points, recording the highest bid-to-price ratio in 21 months. Gyeongbuk (83.1%) and Chungnam (87.0%) rose by 3.2 percentage points and 1.9 percentage points, respectively. Meanwhile, the bid-to-price ratio for apartments in Gangwon (71.7%) dropped by 15 percentage points from the previous month (86.7%), marking the lowest point this year. Gyeongnam (76.0%) and Chungbuk (82.4%) also fell by 4.1 percentage points and 1.4 percentage points, respectively. The bid-to-price ratio for apartments in Jeju was 69.5%, hitting its lowest point in about four years since July 2020 (63.5%). The bid-to-price ratio for apartments in Sejong, where five cases were sold, recorded the lowest point this year at 77.2%.