2 out of 10 Seoul Apartments Fail to Sell... Cold Wave Hits Auction Market Too

Gigi Auction 'October 2022 Auction Trend Report'

Seoul Apartment Auction Index/Data = Jiji Auction

[Asia Economy Reporter Hwang Seoyul] It has been revealed that 2 out of 10 apartments listed in the Seoul auction market failed to be sold. As the base interest rate continues to rise, the auction market is showing signs of freezing up.

According to the 'October 2022 Auction Trend Report' released by Gigi Auction, a specialized court auction company, the apartment winning bid rate in Seoul dropped 4.6 percentage points from the previous month (22.4%) to 17.8%, setting a new all-time low. The winning bid rate has been declining for four consecutive months since June (110.0%).

The winning bid price ratio also recorded 88.6%, down 1.1 percentage points from the previous month (89.7%), showing a downward trend every month since July this year. The average number of bidders also fell to 2.6, down 1.4 from the previous month (4.0), marking the lowest participation rate ever. Gigi Auction explained, "With another big step (0.5 percentage points) increase in the base interest rate last month, the buying demand in the Seoul apartment auction market has become extremely subdued."

The winning bid rate for Gyeonggi apartments was 31.9%, showing a decline for seven consecutive months since April this year. The winning bid price ratio rose 1.3 percentage points from the previous month (79.7%) to 81.0%. The average number of bidders decreased by 0.9 from the previous month (6.7) to 5.8.

The winning bid rate for Incheon apartments recorded 31.1%, up 4.6 percentage points from the previous month (26.5%), and the average number of bidders increased by 5.8 from the previous month (3.0) to 8.8. On the other hand, the winning bid price ratio dropped 1.3 percentage points from the previous month (80.0%) to 78.7%, falling back into the 70% range. In Incheon, many bidders flock to apartments that have failed to sell two or more times, yet the winning bid price ratio remains low.

Daegu Apartment Auction Index/Data = Gigi Auction

Among the five major metropolitan cities in the provinces, the winning bid price ratio for Busan apartments rose 5.8 percentage points from the previous month (78.3%) to 84.1%, ending a five-month decline and rebounding. The winning bid price ratio for Daejeon apartments increased 2.3 percentage points from the previous month (76.4%) to 78.7%, but has remained in the 70% range for four consecutive months since July. Daegu (76.6%) recorded the lowest winning bid price ratio nationwide, while Gwangju (82.2%) and Ulsan (85.8%) fell 1.1 percentage points and 0.6 percentage points respectively from the previous month.

Among the eight provinces, Chungbuk (84.3%) and Gyeongbuk (84.2%) rose 3.9 percentage points and 1.9 percentage points respectively from the previous month. On the other hand, Gangwon, which maintained the highest winning bid price ratio nationwide, sharply declined. The winning bid price ratio for Gangwon apartments dropped 9.7 percentage points from the previous month (99.4%) to 89.7%, falling into the 80% range for the first time this year. Following that, Chungnam (80.1%) and Jeonbuk (87.8%) fell 7.7 percentage points and 7.1 percentage points respectively, while Gyeongnam (85.0%) and Jeonnam (78.7%) dropped 1.2 percentage points and 0.6 percentage points respectively.

Jeju, with three apartments sold, recorded a winning bid price ratio of 95.4%, and Sejong, with two apartments sold, recorded 80.2%.

The nationwide winning bid rate remained low at 46.5%, staying in the 30% range for two consecutive months, while the winning bid price ratio and average number of bidders (5.4) showed similar figures to the previous month.

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