As Housing Prices Soar, Auction Market Heats Up... High Winning Bid Rates for Apartments in the Seoul Metropolitan Area

[Image source=Yonhap News]

[Asia Economy Reporter Ryu Tae-min] Amid the recent continued rise in housing prices, the auction winning bid rates for apartments in the Seoul metropolitan area have also continued to soar.

According to Gigi Auction, a court auction specialist company, the average winning bid rates for apartments in Gyeonggi and Incheon last month were 115.8% and 123.7%, respectively, marking the highest monthly records ever. These figures represent increases of 4.7 percentage points and 5.2 percentage points compared to the previous month.

As apartment prices in Seoul surged, it is interpreted that demand concentrated on undervalued mid-to-low priced apartments in Gyeonggi and Incheon, influenced by the positive effects of the Seoul Metropolitan Express Railroad (GTX).

This month, the winning bid rate for Seoul apartments also recorded 117.1%, jumping 10.1 percentage points from the previous month. However, it did not surpass the all-time high of 119.0% recorded in June. The average number of bidders for apartment auctions in the metropolitan area was 8.3 in Seoul, 9.6 in Incheon, and 11.7 in Gyeonggi.

Senior researcher Lee Joo-hyun of Gigi Auction explained, “Expectations have risen due to consecutive transportation network benefits such as the Seoul Metropolitan Express Railroad (GTX). Typically, the appraised value of auction properties is evaluated several months before the auction date, making them appear cheaper compared to market prices, which often leads to market demand shifting to the auction market.”

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