Impact of Lunar New Year Holidays: Auction Volume Down 22%
Daejeon Hits Lowest Level in 1 Year and 11 Months
The nationwide apartment auction success rate exceeded 40% again after three months. However, this increase in the success rate is analyzed to be due to a reduction in auction schedules during the Lunar New Year holidays rather than an increase in people finding good properties through court auctions.
According to Gigi Auction, a real estate auction and public sale data specialist, the number of apartment auctions nationwide in January was 2,730, a 22% decrease compared to the previous month (3,510 cases). The success rate rose by 3.8 percentage points to 41.4%. Gigi Auction explained, "The auction schedule was reduced due to the Lunar New Year holidays, leading to fewer new listings, and as apartments that had been repeatedly passed over were exhausted, the success rate temporarily rebounded."
The auction price ratio also increased by 0.3 percentage points to 84.8%. The average number of bidders rose to 6.6 from 5.8 in the previous month. The success rate refers to the proportion of apartments listed for auction that were actually sold, while the auction price ratio indicates the ratio of the final sale price to the appraised value.
The apartment auction success rate in Seoul rose to 47.2% from 39.8% the previous month. The auction price ratio increased to 93.3% from 91.8%. Seongbuk-gu (91.2%) rose by 9.4 percentage points, and Gangdong-gu (96.9%) increased by 6.5 percentage points, driving the overall rise in Seoul’s auction price ratio. Bidding was concentrated on small to medium-sized apartments with appraised values under 900 million KRW. The average number of bidders increased by 0.4 to 7 from 6.6 in the previous month.
The apartment auction success rate in Gyeonggi Province was 45.6%, similar to the previous month. The auction price ratio rose by 1.3 percentage points to 86.9%. Bidders were concentrated on newly built apartments close to Seoul. The average number of bidders increased to 9.1 from the previous month.
In Incheon, the success rate fell to 36.6% from 40.2% the previous month. The auction price ratio also dropped by 3.7 percentage points to 80.7%. Areas such as Michuhol-gu, which suffered significant rental fraud, and Gyeyang-gu, with many older apartments, showed weakness. The average number of bidders increased to 7.1.
Among the five major metropolitan cities in the provinces, Ulsan’s apartment auction price ratio rose to 84% from 81% the previous month, ending a three-month decline. Busan also increased to 79.8% but did not surpass 80%. Daejeon fell to 73.7% from 78.9%, marking its lowest point since March 2023. Daegu declined for the fifth consecutive month to 75.5%. Gwangju dropped below 80% for the first time in 14 months to 78.3%.
Regarding the apartment auction price ratios in eight provincial provinces, Gangwon (87.0%) and Jeonbuk (84.1%) rose compared to the previous month. Chungnam (78.3%) fell from 82.9%. Gyeongbuk (79.4%) and Gyeongnam (75.9%) also declined. Chungbuk (79.9%) and Jeonnam (77.8%) decreased as well.
Jeju’s apartment auction price ratio recorded 84.5%, while Sejong remained steady at 78.6%. In Jeju, 4 out of 9 auctions were successful, and in Sejong, 10 out of 22 were successful.
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