Seoul Apartment Auction Fever Spreads to Gyeonggi Province... "Gimpo Winning Bid Rate 131%"

November Gimpo Apartment Winning Bid Rate 131.2%, Average Number of Bidders 30
"Gimpo Regulated and Auction Listings Scarce, Paju Popularity Expected to Continue for a While"

Gimpo Apartment Complex
[Image Source=Yonhap News]

[Asia Economy Reporter Onyu Lim] The fervor in Seoul's real estate auction market is spreading to Gyeonggi Province due to the worsening jeonse (long-term lease) shortage. The winning bid rate for apartments in Gimpo, Gyeonggi, hit an all-time high, and Paju saw the highest number of bidders in over six years.

According to the 'November 2020 Auction Trend Report' released by Gigi Auction on the 7th, there were 14,952 auction cases nationwide, of which 5,226 were successfully bid. The success rate was 35%, the winning bid rate was 76.2%, and the average number of bidders was 3.8.

Seoul apartments, which recorded a record-high winning bid rate of 111.8% in October, maintained a solid trend with a winning bid rate of 108.4%. In November, apartments in Gimpo City, which were excluded from the June 17th measures, attracted the most attention. The winning bid rate for Gimpo apartments in November was 131.2%, with an average of 30 bidders, marking an all-time high. An apartment in Janggi-dong, Gimpo City, attracted 81 bidders, becoming the property with the most bidders in November.

Along with Gimpo, Paju, which also has a new town, drew the focus of auction investors in November. The winning bid rate for apartments in Paju City was 108.1%, surpassing 100% for the first time since May 2007 (103.1%). The total number of bidders for apartments reached 301, the highest since January 2015 (361). Jang Geun-seok, a team leader at Gigi Auction, said, "Since Gimpo was designated as a regulated area on November 19 and there is a shortage of auction properties, the popularity of Paju apartments is expected to continue for the time being."

Ulsan and Busan also saw more than half of the apartments put up for auction in November successfully bid, with the winning bid rate and total number of bidders reaching the highest levels this year. Among all auction properties in November, residential facilities accounted for 47.7%, the highest in 10 years, indicating that interest in residential facilities, especially apartments, is expanding from Seoul to Gyeonggi Province and other metropolitan cities in the provinces.

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