2024-08-04 18:16:20
Last month, the Seoul apartment winning bid rate (the ratio of winning bid to appraisal price) hit its highest level in 1 year and 11 months. With Seoul apartment sales prices rising for 19 consecutive weeks, the favorable winds are also spreading to the auction market, with the winning bid rate rising for two consecutive months. On the other hand, the winning bid rates for Seoul officetels and villas have fallen compared to the previous month, and the gap between apartments and non-apartments is widening in the auction market.
According to the auction data specialist Jiji Auction on the 4th, the successful bid rate for apartments in Seoul last month was tallied at 93.7%. This is the highest level since August 2022 (93.7%) on a monthly basis. The successful bid rate for apartments in Seoul fell from 86.3% in July last year to 80.1% in December last year, but began to rise this year as buying power revived due to concerns over a supply shortage.
Of the 129 apartments in Seoul that were sold at auction last month, 27 (20.9%) were sold at prices higher than the appraised value. This is because, as apartment prices have continued to rise recently, there are many cases where even if an apartment is sold at a price higher than the appraised value, it is cheaper than the market price.
The 41㎡ exclusive area of ’Sanho Apartment’ in Wonhyo-ro, Yongsan-gu was sold for 1.15237 billion won in an auction held on the 2nd of last month. The winning bid is about 1.4 times the appraisal price (838 million won). On the 22nd of last month, 13 people participated in the auction of the 59㎡ exclusive area of ’Licens’ in Jamsil-dong, Songpa-gu, and it was sold for 2.23388 billion won, 1.3 times the appraisal price. This is about 16 million won cheaper than the reported price (2.25 billion won) traded in the same complex last month.
However, the non-apartment auction market in Seoul is not warming up. Last month, the Seoul residential officetel winning bid rate was 85.3%, down from the previous month (86.1%). The villa winning bid rate also slightly decreased from 82.6% to 81.8%. This is because the demand for officetels and villas has decreased due to the aftermath of the jeonse scam, and interest in non-apartments has also decreased in the auction market.
The number of voluntary auctions of apartments, villas, and officetels in Seoul has reached its highest level in eight years. This is interpreted as the result of an increase in the number of “young-kkeul-jok” who cannot afford excessive loans due to the sluggish non-apartment market.
According to the court registration information plaza on this day, the number of applications for registration of arbitrary auction commencement decisions for apartment buildings in Seoul last month was tallied at 639. This is about twice the number in July of last year (372 cases), and the highest number in eight years since July 2016 (663 cases) on a monthly basis.
In particular, Guro-gu had the highest number of applications for arbitrary auctions among the 25 in Seoul, with 195 cases. Gwangjin-gu (41 cases) and Gangseo-gu (39 cases) followed. Apartment complexes include apartments, shopping centers, officetels, and villas. However, considering that areas with many arbitrary auctions are areas with many officetels and villas, it is presumed that a large number of non-apartment properties were auctioned.
A voluntary auction is a procedure in which a creditor auctions off real estate if a debtor who borrowed money using real estate as collateral fails to repay the principal and interest for more than three months. The auction industry believes that the majority of properties are those that were purchased by “young-geul-jok” people who took out excessive loans during the period of rising housing prices and then failed to repay the principal and interest on time as the demand for monthly rent plummeted.
Reporter Kim Ho-kyung [email protected]
Reporter Oh Seung-jun [email protected]
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2024-08-04 18:16:20