Last month, the auction success rate for apartments in Seoul (the ratio of the successful bid price to the appraised price) recorded its lowest level in five months. The impact of the strong lending regulation measures included in the June 27 measures (household debt management plan) is analyzed to be spreading to the auction market.
According to the 'July Auction Trend Report' released by GGAuction on the 7th, the successful bid rate for Seoul apartments is 95.7%, down 2.8 percentage points from the previous month (98.5%). This is the lowest level since February (91.8%).
The successful bid rate for Seoul apartments is 43.4%, a decrease of 3.1 percentage points from the previous month (46.5%). The average number of bidders also decreased by 1.4 from the previous month (9.2) to 7.8, marking the lowest competition rate in six months since January (7.0).
GGAuction noted, "This is analyzed to be the result of a decrease in high-priced successful bid cases that had appeared all over Seoul. As the June 27 measures led to a reduction in loan limits and a cooling of investment demand, the auction indicators for Seoul apartments fell, and the high-priced apartment successful bid rates also dropped across the metropolitan area."
In Gyeonggi, the successful bid rate for apartments is 87.7%, down 2.0 percentage points from the previous month (89.7%). The successful bid rate for apartments valued at over 1 billion won (91.5%) decreased by 8.1 percentage points from the previous month (99.6%), dragging down the overall average successful bid rate. The successful bid rate is 49.5%, down 1.7 percentage points from the previous month (51.2%). The average number of bidders is estimated at 9.3, a decrease of 1.8 from the previous month (11.1).
The successful bid rate for apartments in Incheon is 77.3%, down 1.7 percentage points from the previous month (79.0%), marking a decline for the second consecutive month. The average number of bidders is recorded at 6.9, down 0.6 from the previous month (7.5), the lowest figure since December last year (6.6). The successful bid rate is 43.1%, up 2.7 percentage points from the previous month (40.4%).
The national average successful bid rate for apartments is 85.9%, down 1.7 percentage points from the previous month (87.6%). The number of apartment auction proceedings across the country is 3,277, an increase of about 9% from the previous month (3,013). The successful bid rate is 39.9%, down 2.8 percentage points from the previous month (42.7%).