Jiji Auction "Auction Trend Report"
Fewer Transactions but Strong Prices
The national apartment auction success rate (the ratio of the auctioned price to the appraised value) reached its highest level in 2 years and 10 months. High-priced auction results in Sejong and Seoul led the overall increase in the index.
According to the "Auction Trend Report" released on June 10 by Jiji Auction, a real estate auction data specialist, the national apartment auction success rate in May was 87.8%, up 0.5 percentage points from the previous month (87.3%). This is the highest figure in 34 months since July 2022 (90.6%). During the same period, the number of apartment auctions conducted nationwide was 2,902, a decrease of 9% from the previous month (3,175). The auction closing rate (the proportion of auctioned items that are ultimately sold) also fell by 1.4 percentage points to 38.7%. The average number of bidders was 8.7, maintaining a similar level to the previous month (8.8).
Apartment auction indicators nationwide from June last year to May this year. Provided by Jiji Auction
The auction success rate in Sejong City surged by 15.4 percentage points to 97.7% from 82.3% in the previous month. This is the highest figure since September 2021 (103.2%). This rise is attributed to growing expectations for the completion of the administrative capital project by the government.
Seoul also continued its upward trend. The number of auctions conducted was 252, down 5% from the previous month, but the auction closing rate rose by 0.9 percentage points to 45.2%, and the auction success rate increased by 0.5 percentage points to 97.7%. This is the highest since June 2022 (110.0%). High-priced auction results in non-Gangnam districts such as Mapo, Seongdong, and Yeongdeungpo drove the overall increase.
The Gyeonggi region showed a slight slowdown. The number of auctions conducted was 708, a decrease of 4%, and the auction closing rate fell by 2.1 percentage points to 45.5%. The auction success rate also dropped by 1.9 percentage points from the previous month to 87.6%. Low auction prices in areas with accumulated unsold units, such as Pyeongtaek, had an impact. The average number of bidders also fell back to single digits at 9.9, the first time in three months.
Incheon showed strength. The number of auctions conducted was 291, a 32% decrease from the previous month (428), but the auction success rate rose by 5.2 percentage points to 82.2%. This was due to high-priced auction results in newly built apartments in Cheongna and Geomdan. The average number of bidders increased by 3 from the previous month to 10.2, reaching the highest level in 11 months.
Among the five major metropolitan cities, Ulsan (87.2%) and Daejeon (81.9%) rose by 3.2 percentage points and 0.9 percentage points, respectively, marking two consecutive months of increases. In contrast, Gwangju (81.5%), Busan (78.2%), and Daegu (82.8%) each declined. Notably, Busan has remained below the 80% mark for eight consecutive months.
Among the eight provinces, Jeonbuk rose by 8.5 percentage points from the previous month to 91.4%, and Gyeongnam (80.5%) recovered to the 80% range for the first time in 10 months. Chungbuk (82.6%) was unchanged from the previous month, while Jeonnam (79.4%) fell by 5.7 percentage points.
In Jeju, 6 out of 16 auctions resulted in successful bids, and the auction success rate was 79.7%.
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