87 People Flocked to Helio City... Aftermath of Land Auction Restrictions Even in Auctions

Regional Disparities in Seoul Apartment Auctions Widen
Jamsil-dong Sees Surge in Bidding After Lifting of Land Transaction Permit Zone
Residential, Office, and Land Auctions Nationwide Hit Multi-Year Highs

The gap between regions in the Seoul apartment auction market is widening. While some highly preferred areas, such as those where land transaction permit zones have been lifted, saw an increase in the winning bid rate, less favored areas continued to decline, pulling down the overall winning bid rate.

According to the 'February 2025 Auction Trend Report' released on the 10th by Gigi Auction, a company specializing in auction and public sale data, the winning bid rate for Seoul apartments was 91.8%, down 1.5 percentage points from the previous month (93.3%). The winning rate was 42.7%, a decrease of 4.5 percentage points from the previous month (47.2%). This means that 6 out of 10 auctioned apartments failed to sell.

However, the Jamsil-dong area in Songpa-gu, where the land transaction permit zone was lifted, showed exceptional strength. Gigi Auction explained that after the regulatory easing, housing prices in the area surged, leading to an increase in the winning bid rates for nearby newly built large apartment complexes.

The area also recorded the highest number of bidders last month. At Helio City (85㎡ exclusive area type) in Garak-dong, Songpa-gu, Seoul, 87 people participated in the bidding, and the apartment was sold at 2,157.78 million KRW, which is 117.5% of the appraised value (1,837 million KRW). Gigi Auction said, "Despite being on the first floor, 87 people gathered, which is an example that reflects the recent high interest in apartments in Songpa-gu," adding, "With the lifting of the land transaction permit zone in Jamsil-dong, the asking prices of surrounding apartments also rose, which influenced this winning bid price."

Seoul Apartment Auction Index. Jiji Auction

Last month, the total number of residential facility auctions nationwide was 8,909, a 30.2% increase from the previous month (6,844). The winning rate (32.9%) rose by 1.4 percentage points, but the winning bid rate (76.6%) fell by 1.8 percentage points. The number of auctions for office and commercial facilities nationwide was 5,759, up 35.7% from the previous month (4,245).

This is the highest number of cases in 15 years and 1 month since January 2010 (5,911 cases). It is interpreted that the backlog of auction properties continues as demand for commercial and office buildings decreases due to the prolonged high interest rates. The winning rate (20.9%) increased by 3.2 percentage points, and the winning bid rate (59.4%) rose by 4.4 percentage points.

Nationwide land auctions increased by 29.3% to 7,414 cases, the highest in 10 years and 3 months since December 2013 (8,795 cases).