Heat in the real estate sales market in Dongtan, Hwaseong, Gyeonggi, which avoided the government's Oct. 15 real estate policy restrictions, is shifting to the auction market.
According to the real estate industry on the 1st, the apartment auction market near Dongtan Station in Dongtan 2 New Town, Hwaseong, Gyeonggi, has been gaining momentum since the Oct. 15 measures. On the morning of the 28th, at the Suwon District Court, a voluntary auction for an 84.9-square-meter exclusive-use apartment at "Dongtan Station Siem Reisureville" in Cheonggye-dong, Hwaseong, Gyeonggi, drew bids from 27 people.
The appraised value of this apartment was 1.01 billion won and it failed to sell once, so the minimum bid for the second auction held that day was 707 million won.
The winning bidder, who beat 27-to-1 odds that day, wrote a bid of 1.034 billion won. The winning bid ratio, which is the winning price as a percentage of the appraised value, was 102.38%. The unit was awarded at a price 24 million won higher than the appraised value (1.01 billion won).
Earlier, in a voluntary auction held on the 17th for an 85-square-meter exclusive-use apartment at Dongtan Station Siheom Bando Youbora I'Park in Cheonggye-dong, Hwaseong, the competition rate was 14 to 1.
In the first-round auction, the appraised value and the minimum bid were both 758 million won, and it was awarded for 890,090,934 won. The winning bid ratio was 117%.
The second-highest bidder wrote 889,999,999 won, and the fortunes diverged from the winner by just 9,993,5 won.
With the government including all of Seoul and 12 areas in Gyeonggi as regulated areas and land transaction permit zones under the Oct. 15 measures, buying interest in apartments is concentrating in adjacent areas that avoided restrictions, such as Dongtan in Hwaseong.
In particular, apartments in Osan-dong and Cheonggye-dong near Dongtan Station in Dongtan 2 New Town, Hwaseong, are seeing a balloon effect, with asking prices rising by 100 million to 200 million won compared with actual transaction prices.
As the advantage of being able to buy apartments at prices lower than sale prices stands out to buyers, attention is focusing on the Dongtan apartment auction market.
Lee Joo-hyeon, a senior researcher at GGAuction, said, "As asking prices remain high in the sales market, it is favorable for investors to move into the auction market, where they can buy at lower prices," and analyzed, "In the case of Dongtan in Hwaseong, Gyeonggi, which was not included among the land transaction permit zones in the Oct. 15 real estate measures, the balloon effect seen in the sales market is spreading to the auction market."
The researcher noted, "The Dongtan apartment auction market is likely to continue to see high competition rates and winning bid ratios," adding, "Because loan regulations apply to apartments in the same way as in the sales market, competition will center on cash-rich asset holders and investors, and winning bid ratios will remain high for the time being."