The government's June 27 real estate measures are also affecting the auction market. The winning bid rate (the ratio of the winning bid to the appraised price) has slightly decreased compared to before the lending regulations, and the number of bidders has declined.
According to GGAuction, from the 1st to the 18th of this month, the auction winning bid rate for apartments in Seoul was reported at 94.9%. This is the lowest figure in five months since February (91.8%). Compared to last month (98.5%), it has dropped by more than 3 percentage points (p).
The average number of bidders per item decreased to 7.3, down from 9.2 last month. This is the lowest competition rate in six months since January (7.0).
The decline in the auction winning bid rate is analyzed to be due to the June 27 lending regulations, which limit housing mortgage loans to a maximum of 600 million won, and the mandatory residence requirement for auction winners who take out bidder's loans within six months. Following the lending regulations, the general sales market has entered a wait-and-see phase, and since there is a possibility of price declines, it appears that bidders are avoiding reckless bids.
The bid for the 85㎡ unit of the Guhyeon Jin Air빌 in Guui-dong, Gwangjin-gu, which was bid on the 7th, proceeded at an appraised price of 1 billion won but was unsuccessful. The bid on the 15th for the 85㎡ unit of the Taeyoung Apartment in Changjeon-dong, Mapo-gu, also proceeded at an appraised price of 1.22 billion won but was unsuccessful.
Senior researcher Lee Ju-hyun noted, "Since auction bidders have a residence requirement when using mortgage loans, investment demands that cannot be moved in are making cautious decisions," adding, "As the price increases in the general sales market have stalled, the overall number of bidders has decreased compared to last month."