For 4 Consecutive Months, 'All-Time High' Broken... June Seoul Apartment Auction Success Rate at 119%

Average Winning Bid at 119% of Appraised Value
Record High Winning Bid Rate for Seoul Metropolitan Area Apartments
Bidders Flock Amid H2 Housing Price Rise Outlook... Multiple Winning Bids Exceeding Twice the Appraised Value

As expectations for rising housing prices in the second half of the year grew, the winning bid rate in Seoul's apartment auction market, where demand surged, set a new record high for the fourth consecutive month. Photo by Asia Economy DB

[Asia Economy Reporter Ryu Tae-min] The apartment frenzy is spreading to the auction market. The auction success rate for apartments in Seoul and the metropolitan area in June has once again recorded an all-time high. Seoul's success rate has set new records for four consecutive months since March this year, and the metropolitan area has broken records for six consecutive months since January. Experts analyze that this phenomenon in auctions, a leading indicator of the housing market, signals that housing prices will continue to rise in the second half of the year.

According to court auction specialist company Gigi Auction on the 29th, the average auction success rate for apartments in Seoul this month was 119.0%, up 3.1 percentage points from 115.9% last month. This is the highest since the company began compiling statistics in 2001. Seoul's apartment auction success rate has broken its highest record for four consecutive months since reaching 112.1% in March this year. The success rate refers to the ratio of the winning bid price to the appraised value. For example, an apartment appraised at 100 million KRW was sold at 119 million KRW.

The auction success rate for apartments in the metropolitan area in June also rose 1.4 percentage points from the previous month to 112.4%, marking an all-time high. The metropolitan area's apartment auction success rate has continued its record-breaking streak for half a year since reaching 107.3% in January. Incheon and Gyeonggi also show similar trends. The Gyeonggi region has maintained an auction success rate above 100% for 10 consecutive months, and Incheon for 5 consecutive months. This month, Incheon apartments recorded a success rate of 107.1%, and Gyeonggi 110.7%.

Some apartment auction winning bids have more than doubled the appraised value, showing signs of overheating. On the 28th, an 84㎡ (exclusive area) apartment in Seongnae 1st Complex, Seongnae-dong, Gangdong-gu, Seoul, was sold at 1,037.2 million KRW, more than 2.3 times the appraised value of 450 million KRW. This amount is about 10 million KRW higher than the highest price in the general sales market just before, which was 1,027.5 million KRW. A total of 72 bidders competed.

On the 22nd, a 66㎡ apartment in Miseong Apartment, Sindorim-dong, Guro-gu, Seoul, which attracted 40 bidders, found a new owner at 851.77 million KRW in the auction. This is also more than twice the appraised value (422 million KRW) and exceeded the previous highest sales price of 840 million KRW.

Experts interpret the continued record-breaking prices in the auction market, considered a leading indicator of the sales market, as a signal that housing prices will continue to rise in the second half of the year. Professor Shim Gyo-eon of Konkuk University's Department of Real Estate said, "There is a shortage of supply within Seoul, and the expectation that apartment prices will rise further in the second half of the year is reflected in the popularity of the auction market." Senior researcher Lee Joo-hyun of Gigi Auction explained, "As housing prices soar to unprecedented levels and asking prices in the sales market are very high, demand has concentrated in the auction market, which is considered relatively cheaper, causing the auction success rate to jump."

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