Although the start was late... Ilsan housing prices rise, heating up the auction market as well

Rising Apartment Prices Driven by Transportation Benefits Boost Both Sales and Auction Markets
144 Auctions Completed in Ilsanseo-gu This Year with an Average Winning Bid Rate of 126%
‘10-Year Unsold’ Ilsan Doosan We've the Zenith Sees 90 Units Auctioned This Year
Winning Bids Continue to Exceed Appraised and Market Prices

[Asia Economy Reporter Ryu Taemin] The upward trend in the Ilsan apartment market continues due to consecutive transportation benefits such as the Metropolitan Area Express Train (GTX) and the connection of the Seohae Line. The auction winning bid rates for apartments around the terminus of the GTX-A line in Ilsan New Town are soaring, and demand is also pouring into unsold apartments that have not been sold for over 10 years.

According to Gigi Auction on the 26th, a 117㎡ (exclusive area) apartment in Cheongwon Byeoksan Blooming 3 Complex, Gajwa-dong, Ilsanseo-gu, Goyang-si, Gyeonggi-do, auctioned on the 25th of this month, was sold for 458.99 million KRW. This price is more than 150 million KRW higher than the appraised value of 300 million KRW. Moreover, this winning bid price is higher than the market price. The same size apartment was reported to have been transacted for 450 million KRW in January.

Similarly, a 121㎡ apartment in Ilsan Doosan We've the Zenith, Tanhyeon-dong, auctioned on the 20th, was sold for 783.2 million KRW, which is 36% higher than the appraised value of 574.7 million KRW. This property was sold for about 5 million KRW above the market price, attracting 24 bidders.

Due to the GTX benefits, apartments in the Ilsanseo-gu area are recording record high prices in auctions. The average number of bidders for 144 auctions held this year reached 8.6, and the average winning bid rate compared to the appraised value was 126.6%. According to the auction industry, this is the first time the average winning bid rate for apartments in Ilsanseo-gu has exceeded three digits.

'10-Year Unsold' Zenith Apartments, 90 Units Sold at Auction This Year Alone

In particular, 90 units of Ilsan Doosan We've the Zenith have found new owners through auctions this year alone. This apartment complex, first sold in 2009, had unresolved unsold units for over 10 years. Until mid-last year, it was not traded in the market, leading to a buildup of urgent sale listings. Currently, 34 units remain on the market, and they are expected to be sold out by the second half of this year.

The representative of A Real Estate Agency in Tanhyeon-dong said, "Since last year, transportation benefits such as the GTX A line, Seohae Line connection, and Line 3 extension have been continuously announced, boosting the popularity of apartments in the Ilsan area," adding, "Recently, the cancellation of the GTX-D line connection between Gimpo and Gangnam is expected to further increase demand in this area."

Senior researcher Lee Juhyun of Gigi Auction said, "As Seoul apartment prices have skyrocketed recently, demand seems to have shifted to the metropolitan area outside Seoul," adding, "Not only the sales market but also the auction market, which is considered relatively affordable, is heating up."

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