Seoul apartment winning-bid-to-appraisal ratio hits 19-month low; ultra-high-priced homes cool, mid- and lower-priced ones heat up

[Financial News] Seoul’s apartment winning-bid-to-appraisal ratio fell to its lowest level in 19 months. However, the ratio remained above 100% in areas with a high share of mid- and lower-priced apartments, and the market there continued to show strength.
According to the September auction market report released on the 7th by Gigi Auction, a specialist in court-auction and public-auction data, 3,405 apartment auctions were held nationwide last month, down about 6% from the previous month (3,614). The decline in auctions is attributed to adjustments to sale schedules due to the Chuseok holiday period.
The auction sale rate was 35.4%, unchanged from the previous month. The winning-bid-to-appraisal ratio rose 1.2 percentage points to 85.9% from 84.7% the previous month, rebounding for the first time in four months. The average number of bidders increased by 0.5 to 5.8 from 5.3 the previous month.
Seoul’s apartment winning-bid-to-appraisal ratio stood at 94.7%. That was its lowest level in 19 months, since it came in at 91.8% in February last year. The auction sale rate also fell 1.8 percentage points to 35.3% from 37.1% the previous month.
Gigi Auction said, “Ultra-high-priced and large apartments, including Trimage in Seongsu-dong, Seongdong-gu, and Sambu Apartments in Yeouido-dong, Yeongdeungpo-gu, sold at bids in the 70% range of their appraised values, pulling down the overall Seoul average,” and analyzed that “concerns about rising ownership costs grew after the government announced its tax reform plan, weakening buying demand, particularly for ultra-high-priced apartments.”
By contrast, bids above appraised value continued in areas with a high share of mid- and lower-priced apartments. Gangbuk-gu had the highest winning-bid-to-appraisal ratio among Seoul’s 25 autonomous districts, at 109.6%. Nowon-gu (107.4%), Guro-gu (106.3%) and Dobong-gu (103.1%) also exceeded 100%. The average number of bidders for Seoul apartments rose by 0.2 to 5.4 from 5.2 the previous month.
Regional differences also emerged in Gyeonggi Province’s apartment market. The auction sale rate rose 4.1 percentage points to 41.8% from 37.7% the previous month, but the winning-bid-to-appraisal ratio fell 1.0 percentage point to 88.8%. The weakness in some outlying areas, including Pyeongtaek, Gimpo and Goyang, is believed to have dragged down the average.
By contrast, Anyang’s Dongan-gu posted a winning-bid-to-appraisal ratio of 115.7%, while Suwon’s Yeongtong-gu (114.0%), Gwangmyeong (113.1%), Yongin’s Suji-gu (111.9%) and Seongnam’s Bundang-gu (109.7%) also recorded bids above appraised value. The average number of bidders for apartments in Gyeonggi Province increased by 0.3 from the previous month to 6.2.
Incheon’s apartment winning-bid-to-appraisal ratio rose 2.0 percentage points to 81.1% from 79.1% the previous month, returning to the 80% range. The auction sale rate fell 1.0 percentage point from the previous month to 31.7%. Yeonsu-gu, at 86.3%, and Seo-gu, at 84.0%, led the gains, while Gyeyang-gu (73.9%) and Michuhol-gu (71.1%) were well below the average. The average number of bidders was 6.3.
Among the four major regional metropolitan cities, Ulsan stood out for its gains. Ulsan’s apartment winning-bid-to-appraisal ratio rose 4.1 percentage points from the previous month to 88.5%, marking the biggest increase nationwide for the second consecutive month. Daegu rose 3.4 percentage points to 82.9%, while Busan climbed 2.8 percentage points to 82.9%. Daejeon, by contrast, fell 1.5 percentage points from the previous month to 81.7%, extending its decline for a second consecutive month.
Among the seven provinces outside the capital region, South Gyeongsang (77.6%) rose 1.8 percentage points from the previous month. Gangwon (81.4%) and North Gyeongsang (78.6%) also increased by 1.2 and 0.3 percentage points, respectively.
Jeju fell 7.0 percentage points to 75.5% from 82.5% the previous month, the largest decline. North Jeolla (74.2%) and North Chungcheong (81.1%) also fell by 0.5 and 0.3 percentage points, respectively, while South Chungcheong (80.0%) remained at a similar level to the previous month.
Sejong’s apartment winning-bid-to-appraisal ratio fell 4.5 percentage points from the previous month to 81.5%. Gwangju also declined 1.4 percentage points to 72.9% from 74.3% the previous month.
[email protected] Choi A-young Reporter