Proven by 12·16 Balloon Effect Auction... Suwon Winning Bid Amount Up 100%

Analysis of Indicators in Seoul, Gangnam 3 Districts, Suwon, and Yongin One Month Before and After the Giji Auction Measures
Suwon and Yongin Rise as Seoul and Gangnam 3 Districts Decline
Nonetheless, Gangnam 3 Districts Maintain Winning Bid Prices Above 100% for 7 Consecutive Months

[Asia Economy Reporter Lim On-yu] The 12·16 real estate measures have been confirmed through apartment auction indicators to have a balloon effect, lowering house prices in Gangnam while raising prices in the metropolitan area.

On the 6th, Gigi Auction, a specialized court auction company, announced the results of a comparative analysis of apartment auction indicators in Seoul, the three Gangnam districts, Suwon, and Yongin for one month before and after the announcement of the 12·16 measures. As a result, the bid-to-price ratio in Seoul dropped from 103% to 102.2%, and in the three Gangnam districts from 109.7% to 105.5%, while Suwon rose from 97.8% to 105.4%, and Yongin from 92.2% to 96.4%. Gigi Auction explained, "The increased interest in non-regulated areas as a refuge from regulations seems to have influenced even the auction market."

Meanwhile, according to Gigi Auction's January auction trend report, the number of nationwide auction cases was 11,538, of which 3,873 were successful, recording a success rate of 33.6%. The bid-to-price ratio was 72.1%, and the average number of bidders was 4.2. The bid-to-price ratio for all apartments in Seoul recorded 99.5%, down 0.7 percentage points from the previous month. This ended the streak of exceeding 100% for five consecutive months.

Among these, the bid-to-price ratio for apartments in the three Gangnam districts was 104.3%. Although lower than the peak of 107.7% in November last year due to strengthened real estate regulations, it remained above 100% through January. Gigi Auction explained, "The regulatory policies concentrated in the Gangnam area can be seen as partially effective, but it broke the record for the longest streak by exceeding 100% for seven consecutive months."

Suwon and Yongin, non-regulated areas in the metropolitan area, recorded the highest average number of bidders in apartment auctions in their history, confirming the increased enthusiasm after the 12·16 measures. These areas are considered places where house prices rise due to the balloon effect of real estate regulations centered on Gangnam. Suwon's average number of bidders has steadily increased since October last year (12.3 bidders), maintaining double digits. Yongin, which averaged 7.5 bidders from January to November last year, increased to 12.4 in December and 12.7 in January.

This content was produced with the assistance of AI translation services.