3,386 apartment auctions in Seoul in 2024
73.1% increase compared to the previous year… Soaring in the second half of the year
Gangnam, the top bidder, decreases and small and medium-sized businesses increase.
“Successful bid rate falls as high-priced purchases decrease”
As apartment prices in Seoul have stopped rising, the auction market is also taking a wait-and-see approach.
According to GG Auction’s December 2024 auction trend report on the 10th, the number of apartment auctions nationwide last month was 3,510, the highest in 49 months.
The number of apartment auctions in Seoul increased by 12 from last month to 279, but the success rate was 39.8%, down 8.5 percentage points from the previous month (48.3%). Although the number of items being put up for auction has increased, the number of winning bids has decreased, which is similar to early last year before housing prices in Seoul rose.
Last year, the number of apartment auctions in Seoul totaled 3,386, nearly doubling the number in 2023 (1,956). The number of auction items reached the highest level in the past five years in October last year (380 items). It is interpreted that the properties of ‘young people’ who bought houses in extortion during the period of rising house prices are starting to be sold at auction.
The successful bid rate, which is a leading indicator of housing prices, also dropped 3.1 percentage points from the previous month to 91.8%. It has been on a downward trend for three months since reaching its highest point in October of last year (97.0%).
The Seoul apartment auction market appears to be in decline as even the auction items in Gangnam’s 3 districts are showing weakness.
Last month, only three Gangnam 3-gu apartments were included in the top 10 in terms of successful bid price. The item with the highest successful bid was the 220㎡ exclusive Cheongdam Brunnen unit in Cheongdam-dong, Gangnam-gu, which went for 8.3 billion won, 103% of the appraised price (8.09 billion won).
In contrast, as selective bidding is conducted focusing on actual users, bidders are flocking to non-Gangnam, non-Seoul, and small and medium-sized apartments.
Last month, the place with the most bidding in the country was the 58㎡ exclusive use of Deungchon 10 Complex, Deungchon-dong, Gangseo-gu, Seoul, which was sold for 710.3 million won, 96% of the appraised value of 740 million won.
As the minimum sale price fell to 500 million won due to one failed bid, a large number of actual buyers hoping to purchase at a low price flocked in, reaching 36 bidders.
34 people bid for an 85㎡ unit dedicated to Dongnimmun Samho in Yeongcheon-dong, Seodaemun-gu, and it was sold for 860 million won, 85.1% of the appraised value of 1.011 billion won.
Lee Joo-hyeon, a senior researcher at GG Auction, explained, “If you look at apartments in Seoul with a large number of bidders, most of them are mid- to low-priced apartments in the outskirts of Seoul.” He added, “It can be seen that actual buyers have concentrated on apartments with relatively less loan interest burden.”
At the same time, he said, “As expectations for future increases in apartment prices are decreasing due to various variables, the purchase price in the high price range is decreasing, and the winning bid rate is likely to fall further for the time being.” He added, “Unless loan regulations are relaxed and uncertainty is resolved, this trend will continue.” “He said.
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