The hotly heated apartment auction market… Sejongseo won twice the connoisseur’s bid

Input 2021.01.05 15:00

Apartments are rising in popularity in the auction market. Real estate prices have risen sharply, and there was a jeonse crisis, but since there are few sales in the market, it is the aftermath of end users flocking to the auction market.

On the 5th, as a result of examining the successful bid price of apartment auctions (the sale price and the ratio of successful bid price to appraised price) held in 17 cities and provinces nationwide last month through the support auction statistics system, apartment auctions in Seoul, Gyeonggi, Daejeon, Sejong, Daegu, and Busan It was found that the successful bid price rate exceeded 100%. If the winning bid rate is higher than 100%, it means that the bid was made at a higher price than the appraised price.

In Seoul, 17 of the 32 apartments that were auctioned last month were sold. The average successful bid price rate was 113.23%, the highest on a monthly basis last year.

In the auction market last year, Seoul apartments continued to enjoy great popularity. All months except January, March and May exceeded 100%. Competition has become more intense from the second half of the year. In the case of January to May, the average number of bidders was 7.93, but in December it increased to 8.94.

In the metropolitan area and local apartments, competition has become increasingly fierce in recent years, and the successful bid price rate is also increasing. Last month, the average successful bid price rate for apartments in the Gyeonggi area was 100.85%. In 2017-2019 alone, the average monthly bid price rate for apartment auctions in Gyeonggi Province never exceeded 100%. In April 2020, the successful bid rate recorded 101.3%, exceeding 100%, and continued to exceed 100% in September and December.

Sejong City, where apartment prices rose the most in the country last year, is receiving more precious treatment in the market because there are few apartment auction items. Only 35 apartments in Sejong area were auctioned last year.

In particular, last month, there was a case of a successful bid at a price nearly twice the appraised price. A whopping 25 people bid for the 84.9m2 auction for the exclusive area of’Jochiwon Shindong Apa Millie’ in Jochiwon-eup, Sejong. Completed in 2008, the appraised value of the apartment was 165 million won, but it was a successful bid for 31.6 million won. Last year, the maximum price for the same area of ​​the apartment was 260 million won. The industry says that competition intensified as the number of bidders interested in Sejong City increased due to issues before the National Assembly.

The auction market in Daegu is also hot. The Daegu apartment sale price rate in December was 118.99%, the highest based on the monthly successful bid price rate last year. In Busan, the average apartment bid price rate for apartments last month was 110.07%, the highest (103.58% in November). The average number of bidders was 10.76, the highest in the past year. Daejeon also surpassed 100% for 14 consecutive months, recording 102.78% for apartment auctions in December. In addition, auctions are being held in the outskirts of the metropolitan area such as Gimpo and Paju.

Experts predict that apartment popularity will be high in the auction market this year. Ko Jun-seok, an adjunct professor at Dongguk University’s Graduate School of Law, said, “Once there are not many apartments coming out of the auction market, it is highly likely to show a high sale price for the time being.” He added, “If you have a plan to buy an apartment through auction, you have to participate in the first auction to increase the likelihood, and you should consider the market price rather than using the appraised value as a standard.”