Hot May Auction Market... 92 Bidders Gathered for Incheon Apartments

Seoul Metropolitan Area Sells Out Immediately VS Provinces Sell at Half Price After Repeated Failures

[Asia Economy Reporter Onyu Lim] The auction market is heating up. As auctions, which had been suspended due to the impact of the novel coronavirus disease (COVID-19), resumed, both the winning bid rate and winning bid price ratio rose simultaneously, especially for residential facilities in the metropolitan area.

According to the 'May Auction Trend Report' released by Gigi Auction on the 9th, the total number of auctions nationwide was 13,094, of which 4,669 were successfully bid. The winning bid rate rose by 2.5 percentage points from the previous month to 35.7%. The winning bid price ratio also increased significantly by 6 percentage points from the previous month to 77.1%.

In particular, the winning bid rates in Gyeonggi (44%) and Incheon (43.5%) increased by more than 5 percentage points compared to the previous month, driving the upward trend in the metropolitan area. On the other hand, Gyeongnam (25.3%) and Chungbuk (26.6%) were the only regions nationwide where the winning bid rate remained in the 20% range for two consecutive months.

For residential facilities, Gyeonggi, which has a particularly large volume, recorded a winning bid rate of 50.6%, marking the first time this year that it surpassed 50%. In Incheon, the rate rose by 6.5 percentage points from the previous month to 45.2%. Regionally, the strong performance in Daejeon, Daegu, and Gwangju continued, while in Gyeongbuk and Jeju, repeated auction failures led to lower minimum bid prices, which helped improve the winning bid rate, although the winning bid price ratio remained among the lowest nationwide.

The regional disparity in commercial and business facilities was even more pronounced. Compared to the booming metropolitan area, Jeju (14.6%), Jeonnam (16.2%), and Busan (18.5%) recorded winning bid rates below 20%, showing market stagnation. Chungnam (47.1%), Jeonbuk (50.8%), and Gyeongnam (53.7%) also showed winning bid price ratios at only about half of the appraised value.

However, Gwangju (94.5%), Seoul (94.3%), and Busan (88.5%), which recorded some of the highest winning bid price ratios nationwide, appear to have been partially influenced by the high-priced winning bids of large properties appraised at tens of billions of won.

Researcher Myungwon Oh of Gigi Auction explained, "Unlike the metropolitan area where properties sell as soon as they come on the market, in some local areas, properties that have repeatedly failed to sell are beginning to be absorbed, causing a rise in winning bid rates and a decline in winning bid price ratios, showing an inverse relationship."

Meanwhile, the property with the highest number of bidders last month was an apartment (exclusive area 45㎡) located in Yeonsu-dong, Yeonsu-gu, Incheon, with as many as 92 bidders participating. It was sold at 1.4167 billion won, which is 98% of the appraised value of 1.45 billion won. The large complex consists of 8 buildings with 1,170 households, completed in 1993, and is located south of Incheon Jungang Elementary School. Woninjae Station on Incheon Line 1 and Suin Line is a 3-minute walk away. Public offices such as Yeonsu-gu Office, police station, library, post office, and administrative welfare center, as well as various convenience facilities including Lotte Mart, CGV, and Incheon Red Cross Hospital, are also nearby. Researcher Oh explained, "The high popularity seems to be due to the apartment being suitable for actual residence conditions such as education, jobs, convenience facilities, and parks."

The property with the highest winning bid price last month was a cultural assembly facility located in Yeongdeok-dong, Giheung-gu, Yongin-si, Gyeonggi Province (land 23,279㎡, building 3,740㎡). It was sold at 30.66062 billion won, which is 85% of the appraised value of 36.19859 billion won. The three-story building, completed in May 2008, was used entirely as an art museum exhibition hall, and some concession facilities also appear to have been operated.

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