Auction Winning Bid Rate for Apartments Nationwide Surpasses 80% in July for the First Time in 9 Months

Winning Bid Rate at 37.5%... Over 4% Increase Compared to Previous Month

Recently, as the "housing price bottom theory" gains traction, both the auction success rate and the auction price ratio rose together in the July auction market. In particular, the auction price ratio, which shows the ratio of the winning bid price to the appraised value, recovered to the 80% range for the first time in nine months, showing a positive trend.

According to the "July 2023 Auction Trend Report" released on the 9th by Gigi Auction, a data specialist in auctions and public sales, the number of apartment auctions nationwide was 2,214, of which 830 were successfully bid, resulting in a success rate of 37.5%. This is a 4.6 percentage point increase from the previous month (32.9%).

The auction price ratio also recorded 80.3%, up 2.3 percentage points from the previous month (78.0%), recovering to the 80% range for the first time since October last year (83.6%).

However, the average number of bidders decreased by 1.0 from the previous month (8.2) to 7.2.

By region, apartment auctions were active in Seoul. The number of apartment auctions in Seoul was 169, marking the highest monthly number since November 2016 (171 cases). The success rate was 37.9%, jumping 9.6 percentage points from the previous month (28.3%), and the auction price ratio rose 5.4 percentage points from the previous month (80.9%) to 86.3%.

Within Seoul, some apartments in regulated areas such as the Gangnam 3 districts and Yongsan-gu were sold in the first or second rounds, driving the overall increase in Seoul's auction success rate and auction price ratio. The average number of bidders increased by 1.8 from the previous month (5.8) to 7.6.

The apartment auction success rate in Gyeonggi-do was 41.0%, up 2.1 percentage points from the previous month (38.9%), and the auction price ratio also rose 3.0 percentage points from the previous month (75.9%) to 78.9%. The auction price ratio has been on the rise for three consecutive months. The average number of bidders increased by 0.8 from the previous month (10.0) to 10.8.

The apartment auction success rate in Incheon was 35.8%, up 7.9 percentage points from the previous month (27.9%), and the auction price ratio recorded 75.3%, up 0.5 percentage points from the previous month (74.8%). The average number of bidders was similar to the previous month at 8.6.

Among the five major metropolitan cities outside the Seoul metropolitan area, apartment auction price ratios in Daejeon and Gwangju showed an upward trend. The auction price ratio in Daejeon rose 6.1 percentage points from the previous month (77.6%) to 83.7%, reaching the 80% range for the first time in 1 year and 1 month since June last year.

Gwangju recorded 81.2%, up 0.7 percentage points from the previous month (80.5%).

However, Busan fell 0.6 percentage points from the previous month (74.0%) to 73.4%, and Daegu (74.5%) and Ulsan (73.8%) also dropped by 5.3 percentage points each.

The eight provinces in the provinces also showed mixed figures by region.

The apartment auction price ratio in Jeonnam rose 7.7 percentage points from the previous month (75.4%), showing the largest increase nationwide, but Gyeongnam (78.3%) and Gangwon (82.8%) fell by 1.0 percentage point and 1.8 percentage points, respectively. The apartment auction price ratio in Gyeongbuk (78.6%) also dropped by 2 percentage points compared to the previous month.

Senior researcher Lee Joo-hyun of Gigi Auction explained, "Although apartment auction indicators are showing signs of recovery, there is a large gap between regions, and with the continuation of debt service ratio (DSR) regulations and high interest rates, it remains to be seen whether the recovery trend will continue."

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