Driven by a balloon effect from the Oct. 15 measures, the successful bid rate (the ratio of the selling price to the appraised value) for apartment auctions in Seoul in October topped 100% for the first time in 3 years and 4 months. Even in land transaction permit zones, buying an apartment through auction does not impose an owner-occupancy requirement, which is seen as drawing demand.
According to GGAuction, a company specializing in auctions and public sales, on the 2nd the average successful bid rate in Seoul's apartment auction market last month was 102.3%. It was the first time the Seoul apartment successful bid rate entered the 100% range since June 2022 (110.0%).
A high successful bid rate can be taken to mean bidding competition was intense when the auction was held. In the wake of the Oct. 15 measures, which designated all of Seoul and 12 locations in Gyeonggi as land transaction permit zones and regulated areas (adjustment target areas and speculative overheating districts), auction demand surged.
The auction market is not affected by designation as a land transaction permit zone, so there is no owner-occupancy requirement. After winning a bid, a buyer can immediately rent it out or sell it.
Competition was fierce at auctions in the Han River belt, which was newly designated as a regulated area under the Oct. 15 measures. In Seongdong District, a 60-square-meter unit at "Kumho-dong Hanshin Hue Plus" found a buyer on the 27th of last month for 1.213 billion won, or 130.9% of its appraised value. On the same day, a 60-square-meter unit at Cheonggu Apartment in Gwangjang-dong, Gwangjin District, drew bids from 27 people and was sold for 1.41123 billion won, or 139.7% of its appraised value.
There were also cases in the Gyeonggi area where the successful bid rate topped 100%. In Bundang District, Seongnam, an 85-square-meter unit in "Botdeul Maeul" found a buyer on the 20th of last month for 1.8599 billion won, or 117% of its appraised value.