Apartment Winning Bid Rate Surpasses 40% for the First Time This Year in August... "Intensified Sorting by Region"

The nationwide apartment auction success rate in August exceeded 40% for the first time this year.

According to Gigi Auction, a data specialist in auctions and public sales, the number of apartment auctions conducted nationwide last month was 2,373, of which 1,020 were successfully sold, resulting in a success rate of 43.0%. This is a 5.5 percentage point increase from the previous month (37.5%) and the first time this year that the rate has surpassed 40%.

However, the rise in the success rate does not necessarily indicate a recovery in the real estate market. A Gigi Auction official explained, "About 200 rental apartments owned by local construction companies in Chungnam, Jeonbuk, and Jeonnam flooded the auction market and were sold at low prices, which raised the nationwide apartment auction success rate."

The bid-to-appraisal ratio (the ratio of the winning bid to the appraised value) rose by 0.3 percentage points from the previous month (80.3%) to 80.6%, maintaining the 80% range for two consecutive months. The average number of bidders increased by 0.8 from the previous month (7.2) to 8.0.

The number of apartment auctions conducted in Seoul was 190, the highest monthly figure this year. The success rate was 34.2%, down 3.7 percentage points from the previous month (37.9%), and the bid-to-appraisal ratio was 85.4%, down 0.9 percentage points from the previous month (86.3%). The average number of bidders was 6.0.

In Gyeonggi-do, the number of apartment auctions was 475, the highest in 2 years and 10 months since October 2020 (546 cases). The success rate was 40.8%, down 0.2 percentage points from the previous month (41.0%). The bid-to-appraisal ratio rose by 1.2 percentage points from the previous month (78.9%) to 80.1%, recovering to the 80% range for the first time in 10 months since October 2022 (81.0%). The average number of bidders increased by 2.5 from the previous month (10.8) to 13.4.

Among the five major metropolitan cities, the bid-to-appraisal ratio rose in all areas except Daejeon.

Ulsan recorded 80.6%, up 6.8 percentage points from the previous month, and Daegu recorded 78.8%, up 4.3 percentage points. Busan (76.4%) and Gwangju (82.5%) rose by 3.0 percentage points and 1.3 percentage points, respectively. The apartment bid-to-appraisal ratio in Daejeon was 79.4%, down 4.3 percentage points from the previous month.

Lee Joo-hyun, a senior researcher at Gigi Auction, said, "As the number of apartment auction properties continues to increase, many bidders have concentrated on large-scale newly built apartments with high residential preference or reconstruction apartments with expected future value appreciation, resulting in relatively high bid-to-appraisal ratios." He added, "Due to the ongoing high interest rate environment, the increase in auction properties is unlikely to subside for some time, and as the selection process intensifies, the gap between regions and complexes will widen further."

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