Last month, the sale price ratio (the winning bid compared to the appraised value) in the Seoul apartment auction market reached the highest level in three years. However, the sale rate was only 40%. While many properties are being sold for more than the appraised value, with bidders concentrating only on a few properties with excellent locations and conditions, the gap between properties is becoming increasingly pronounced, as 6 out of 10 properties are not sold.
According to the real estate platform Zigbang, the average sale price ratio for Seoul apartments last month was 96.5%. This is the highest level in three years since June 2022 (103.0%). By district, Mapo District (113.7%), Seongdong District (108.5%), Jung District (108.4%), Yeongdeungpo District (107.2%), Gangnam District (103.4%), and Gwangjin District (103.0%) saw sale price ratios exceeding 100%, with many cases being sold at prices above the appraised value. Zigbang analyzed, "The perception of price stability compared to the peak and expectations of interest rate cuts are acting in combination, leading to an influx of bidding demand for properties with competitive locations."
On the other hand, the average sale rate for Seoul apartments last month was only 40%. This means that 6 out of 10 auction items were not sold. The sale rate in Mapo District, which had the highest sale price ratio, was only 14.8%. The sale rates in major areas like Yongsan District (14.3%) and Songpa District (16.7%) were also low.
Kim Eunsun, head of the Big Data Lab at Zigbang, noted, "Auction winning prices are recovering rapidly, but buyers are still only bidding on a few properties that meet both location and price conditions."