The Seoul apartment auction market continues to show strength. Demand, initially centered on reconstruction projects, is now spreading to redevelopment areas, outer suburbs, and mid-to-low-priced properties.
According to the "May 2026 Auction Trend Report" released on June 10 by the auction data firm Gigi Auction, the bid rate for Seoul apartments last month was 100.8%, up from 100.5% in the previous month. This marks the second consecutive month that the bid rate has exceeded 100%, indicating a significant number of properties sold for prices above their appraised values.
While the auction rate fell to 40.0% from 48.7% the previous month, the bid rate increased. This suggests that bidders are selectively targeting properties with lower price burdens or those with development potential, rather than bidding on all available items.
In fact, bidders flocked to mid-to-low-priced and outer suburban properties. An 84-square-meter unit in the World Cup Park 3 complex in Sangam-dong, Mapo-gu, attracted 21 bidders and sold for 1.13 billion won, which is 101.8% of its appraised value of 1.11 billion won. Similarly, a property in Daewang Housing in Sangdo-dong, Dongjak-gu, received bids from 20 participants and sold for 404.15 million won, or 149.3% of its appraised value of 269 million won.
Competition also persisted in the metropolitan area. The bid rate for apartments in Gyeonggi Province reached 89.0%, the highest level since June of last year. A 55.8-square-meter unit in Gwacheon City attracted 38 bidders and sold for 1.5153 billion won, which is 140.3% of its appraised value of 1.08 billion won.
Demand is also rising for single-family homes and small apartments in redevelopment areas. According to Gigi Auction, the average bid rate for single-family homes in redevelopment zones in Ahyeon-dong, Mapo-gu, Bongcheon-dong, Gwanak-gu, and Hannam-dong, Yongsan-gu, exceeded 110%. The Seonggyeong Apartment in Ichon-dong, Yongsan-gu, sold for 1.06 billion won, or 189.3% of its appraised value of 560 million won. This property is part of a small apartment complex scheduled for redevelopment.
Industry experts believe that the relatively lower impact of land transaction regulations and resale restrictions on auctions compared to regular sales is also attracting demand. As apartment and rental prices in Seoul rise, both end-users and investors are turning to auction properties that offer lower price burdens and financing options.
Joo Hyun, a senior researcher at Gigi Auction, stated, "As apartment and rental prices in Seoul increase, end-users are gravitating towards mid-to-low-priced apartments that are relatively less burdensome and eligible for loans. The auction market is reflecting this demand as well."
However, there are predictions that future changes in tax policies and interest rates could simultaneously affect auction properties and bidding demand. If measures such as strengthened property taxes and revisions to long-term capital gains tax exemptions are implemented, they could have a long-term impact on the auction market.
Kang Eun-hyun, head of the Auction Research Institute, noted, "Changes in tax policy could lead to fluctuations in the number of bidders and bid rates. While increased auction inventory may occur due to tax reforms and interest rate influences, stricter investment regulations could simultaneously dampen auction demand." He added, "However, due to the procedural lag in auctions, the effects of increased supply may not be reflected for about a year."
* This article has been translated by AI.
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