The Number of Nationwide Auction Cases Increased... But All Other Indicators Declined

Gigi Auction 'May 2022 Auction Trend Report'
Nationwide Auctions (All Uses) Increase in Number of Cases
Decrease in Success Rate, Sale Price Ratio, and Average Number of Bidders

[Asia Economy Reporter Hwang Seoyul] The number of nationwide auction proceedings in May increased compared to the previous month, but all other auction indicators showed a decline.

According to the ‘May 2022 Auction Trend Report’ by Jiji Auction on the 12th, the total number of nationwide auctions (all purposes) was 9,628, a 15.9% increase from the previous month (8,308 cases). However, the success rate dropped by 1.8 percentage points to 37.9% from 39.7% the previous month, and the winning bid rate slightly decreased to 83.0% from 83.1%. The average number of bidders also fell by 0.5 to 4.1 from 4.6 the previous month.

The success rate refers to the ratio of items with confirmed winning bidders among those put up for auction. The winning bid rate is the ratio of the winning bid price to the appraised value; if it exceeds 100%, it means the winning bid price was higher than the appraised value.

By region, Daejeon was the only area to exceed a 50% success rate, showing the most activity. Daejeon’s success rate rose by 8.1 percentage points to 54.4% from 46.3% the previous month, driven by increases in residential and office/commercial facilities across all purposes.

Seoul recorded the highest winning bid rate at 93.3%. Seoul showed a high winning bid rate in residential facilities, with villas (townhouses, multi-family houses) in redevelopment-issue areas leading the increase in the overall winning bid rate.

The region with the highest average number of bidders was Gwangju (7.1 bidders), attracting many bidders in residential and office/commercial facilities. Incheon ranked second (5.8 bidders), with many bidders in residential facilities.

By purpose, the nationwide residential facility success rate was 38.6%, down 3.3 percentage points from 41.9% the previous month, and the winning bid rate was 87.3%, a 0.5 percentage point decrease from 87.8%. The average number of bidders was 5.4, down 0.7 from 6.1 the previous month.

The success rate for office/commercial facilities rose by 1.1 percentage points to 33.2% from 32.1% the previous month, while the winning bid rate dropped sharply by 10.4 percentage points to 74.4% from 84.8%. The average number of bidders was 3.6, down 0.8 from the previous month.

The land success rate decreased by 0.9 percentage points to 39.1% from 40.0%, whereas the winning bid rate increased by 10.2 percentage points to 86.6% from 76.4%.

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