# The real estate auction market was a place for so-called `players` like multi-homed people. However, it is the end users who have recently filled the auction house. One auction expert said, “It was originally a market for multi-homed people, but now a lot of end-users flock to them looking for a little cheaper sale,” he said. “On the day when Seoul apartments are sold, the corridors are full.” In fact, the exclusive area of 45.9m2 of the Sanggye Jugong 14 Complex in Nowon-gu, Seoul, was auctioned at 481 million won (10th floor, 189% of the successful bid price) out of 46 bidders on the 8th of last month. It is 10.5 million to 24 million won lower than the reported price in the general trading market (550 million won, 10th floor). It was found that 8 out of 10 apartments sold by court auction in Seoul last month were successful. It is the highest successful bid rate ever (the number of successful bids compared to the number of auctions), which is the effect of end-users tired of rising house prices running to the auction house.
According to Jiji Auction, a court auction company on the 2nd, 36 out of 45 apartments in Seoul where court auctions were held in February, recorded a successful bid rate of 80%. This is the highest monthly successful bid rate for apartments in Seoul, which came out through court auctions. The previous high was 79.5%, which was recorded in October 2018. The successful bid rate for apartments in Seoul reached 80% for the first time last month, following 52.8% in December last year and 75% in January this year. Oh Myung-won, a senior researcher at Jiji Auction, explained, “Because the supply and demand in the general trading market is not normal amid high buying sentiment, the general end-users have turned to the auction market.” In fact, the average number of bidders increased for three consecutive months to 5.8 in November last year, 9.2 in December, 10.8 in January this year, and 11.7 in last month.
The rate of successful bids for apartments in the metropolitan area, including Seoul, also hit an all-time high. The success rate for apartments in the metropolitan area, which is usually 40-50%, continued to rise for 4 consecutive months, with 52.5% in October last year, 59.3% in November, 67.6% in December, 74.3% in January this year, and 74.7% in February. The 52.14m2 for Dongchun-dong, Incheon Yeonsu-gu, Dongnam Apartment, was a successful bid for 161 million won (1st floor, 89% of the winning bid price) on the 5th of last month. At that time, the number of bidders for the court auction reached 38.
It can be seen that the strong real demand is that unsold apartments have recorded the’lowest value’ since statistics were collected. As of the end of January, the number of unsold homes nationwide was 17,130, down 9.9% (1875 households) from the previous month (19,005 households). Compared to 43,268 households a year ago, it decreased by 60.4%. This is the minimum level since the start of managing related statistics in 2000.
The problem is that there is no quantity available to meet such real demands. According to Real Estate 114, the number of occupied households in March was 19,800 households, down 40.2% from last month. Not only this month, but also supply in 2-3 years is insufficient.
According to the Ministry of Land, Infrastructure and Transport, the housing permit performance in Seoul in January was 2695 households, down 21.1% from the same month last year. It is the lowest level since September 2019 (2661 households), and as of January, it is the lowest in 11 years since 2010 (1237 households).
The government announced that it will supply 836,000 households nationwide, including 323,000 households in Seoul, by 2025 through the 2·4 real estate measures, but if you look at the contents, it means that it will secure’land’ to supply housing by 2025. It doesn’t mean that it supplies. For this reason, experts advise that in order to stabilize the market right away, it is necessary to use methods that allow multi-homed people to put their products on the market.
“There is no means that the government can use in terms of supply for several years right now,” said Kim Hak-ryul, head of the Smart Tube Research Institute.
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