Seoul Villa Auctioned for 362 Million Won, 36% Over Appraisal Value

On the 6th, a 24.4㎡ multi-family housing unit in Gil-dong, Gangdong-gu, Seoul, was sold for 362.1 million won—approximately 100 million won higher than the appraised value of 266 million won—recording a bid ratio of 136%. Bidders evaluated the property highly because ownership transfer was clear, requiring no additional burden for the existing tenant's deposit. Auction competition is appearing even in general areas outside of redevelopment zones. On the 7th, a villa in Sangdo-dong, Dongjak-gu, Seoul, was auctioned for 421.5 million won, 98.48% of the appraised value of 428 million won, in its second auction round.

Participation from general bidders is becoming distinct. According to HUG auction data for the first half of this year, out of 5,672 successful bids, general bidders accounted for 4,347 cases (76.6%), while direct HUG bids accounted for 1,325 cases. Bid ratios are also on the rise. According to JJ Auctions' analysis, the average successful bid ratio for general bidders in April was 74.98%, 7.7 percentage points higher than HUG (67.28%), and in May, general bidders recorded 73.20% compared to HUG's 69.59%.

According to the Korea Real Estate Board, prices for row houses in Seoul have been rising since last September, climbing 3.37% from January to May this year. Jeonse (key money) prices also rose 0.59% in May, marking the largest monthly increase since October 2012. According to Ministry of Land, Infrastructure and Transport statistics, while apartment rental transaction volume fell 7.2% year-on-year in the first five months of this year, non-apartment rental transaction volume increased by 11.5%.