“Set your sights on an OO apartment in Gyeonggi Province”... Hidden-gem properties for young buyers to watch [Jip Nawara Ttukttak!]

[Financial News] With apartment auctions heating up among young people, some say apartments in non-regulated areas of southern Gyeonggi, Gimpo and Goyang are worth targeting as niche listings. For alternative housing such as villas and officetels, the view is that it is important to separate the promising properties from the poor ones.
Lee Ju-hyeon, an expert committee member at Jiji Auction, appeared on the Financial News YouTube channel’s Jip Nawara Ttukttak! on the 2nd and shared why people in their 20s and 30s are flocking to court auctions amid recently surging home prices and jeonse deposits, as well as practical investment strategies.
■ Villas and officetels: separating the gems from the dross is essential
Lee advised that villas may also rise in value as a spillover effect from higher apartment prices and the jeonse crunch, but that their prices tend to fall further in a downturn. “To prepare for a market correction, focus on properties near transit or newly built homes that can limit price declines,” he said.
On the so-called “body-tech” strategy of living in a villa in an area slated for redevelopment while awaiting the project, he stressed, “It may be worth considering if you can put up with poor living conditions, but it is safer to first secure a home that fits your budget rather than chasing redevelopment at all costs.” He added that when bidding on a redevelopment villa, “If an individual or a lending company applies for an auction after the management and disposal plan has been approved, it may not be possible to take over the seller’s association membership. You must confirm this with the association office and other relevant parties.”
Regarding officetels as income-generating properties, he urged buyers to “calculate the monthly rental yield carefully rather than counting on capital gains.” He added, “Small officetels often have one-year leases, and every time a tenant changes, there are additional costs such as wallpapering and servicing fixtures and appliances, so you must factor those in.”
■Niche areas in the Seoul metropolitan region and how to determine an appropriate bid
As niche areas worth considering for young people with limited funds, provided the locations are within their regular living areas, he named older apartments in non-regulated areas of southern Gyeonggi (Manan District in Anyang, Gunpo and Gwonseon District in Suwon) and newly built apartments in Gimpo and Goyang. Lee explained, “In these areas, winning-bid rates for older apartments and certain complexes are relatively low compared with new builds, making them good candidates for bidding at a bigger discount.”
On the bidding benchmark everyone is most curious about, he said, “During a downturn, I advised buying at least 20% below market price. But for new apartments in Seoul right now, buying just 5–10% below market prices and asking prices would be a very successful purchase.” He added, “There is absolutely no need to be upset if the gap between your winning bid and the runner-up’s bid is large. The key to succeeding in the auction market is to focus only on the profits you can make going forward and not let other people’s opinions sway you,” he advised.
■Beware tenants with enforceable rights and fractional-share auctions... No need to fear eviction
He listed properties with a senior tenant who has enforceable lease rights, fractional-share auctions, and properties with excessive lien claims as assets first-time owner-occupiers must avoid.
Lee warned, “If a tenant with enforceable lease rights has not filed a claim for distribution, the winning bidder must take on the full security deposit and cannot actually move into the property during the lease term. It may be an opportunity to buy at a low price for an investor, but it can become a trap that keeps an owner-occupier from living there for an extended period.” Fractional-share auctions may also be unsuitable for beginners, the article noted, as exercising full ownership rights can require complex legal disputes.
He reassured beginners, who are often most afraid of “eviction (removing the occupant),” that there is no need for vague fears. “Unlike ordinary public auctions, court auctions have a delivery order procedure, so you can obtain authority for compulsory enforcement in about a month without filing a lawsuit,” he said, adding, “In practice, at least 95% of cases are resolved amicably through dialogue and negotiation, along with appropriate moving expenses (compensation).”
More practical auction tips and firsthand stories can be found on the YouTube channel Jip Nawara Ttukttak!.


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