The auction market is showing clear signs of differentiation. As nationwide apartment bidding rates and prices decline, properties in mid-priced areas and those with redevelopment potential continue to attract bids above their appraised values.
According to the August 2026 Auction Trend Report from the auction data firm Zigy Auction, the number of nationwide apartment auctions last month reached 3,614, a 26% increase from 2,874 during the same period last year. This marks the sixth consecutive month with over 3,000 auctions.
The national apartment bidding rate fell to 35.4%, down 1.9 percentage points from the previous month’s 37.3%. The bidding price rate (the ratio of the final bid price to the appraised value) also decreased from 85.4% to 84.7%, marking a three-month decline.
In Seoul, the apartment bidding rate dropped to 37.1%, a decrease of 1.2 percentage points from the previous month. The bidding price rate fell from 101% to 97%, dipping below 100% for the first time in five months.
There were notable differences among various complexes. Some large 'single-occupancy apartments' sold for 60-80% of their appraised values, pulling down the average. In contrast, mid-priced apartments and those with expectations of reconstruction or remodeling attracted numerous bidders.
In fact, the bidding price rates for apartments in Jungnang-gu and Nowon-gu were 115.2% and 102.8%, respectively, exceeding their appraised values. In Nowon-gu's Wolgye-dong, a 60-square-meter Hyundai apartment received 10 bids and sold for 871.77 million won, resulting in a bidding price rate of approximately 122%.
In Gyeonggi Province, demand concentrated in preferred areas. The overall apartment bidding rate plummeted from 49.1% to 37.7%, marking the lowest level this year. However, the bidding price rate increased from 86.8% to 89.8%, reaching its highest point in two years since August 2024.
Areas such as Hanam (112.1%), Hwaseong's Dongtan (109.8%), and Yongin's Suji (109.5%) recorded bidding price rates above their appraised values.
In the general sales market, the proportion of transactions involving mid-priced apartments has risen. Ham Young-jin, head of the real estate research lab at Woori Bank, analyzed data from the Ministry of Land, Infrastructure and Transport, revealing that as of August 4, 54.3% of reported contracts in Seoul were for apartments priced below 900 million won, up 7.2 percentage points from 47.1% in January.
Ham stated, “The government continues to impose strict regulations on household loans, including adjustments to total household loan limits and loan-to-value ratios, along with tax reform proposals and two interest rate hikes in August.”
He added, “Ultimately, those with limited funding have moved to areas with mid-priced housing. In this mixed bidding outcome, it is essential to consider regional and price trends rather than relying solely on bidding rates and prices to make hasty decisions.”
* This article has been translated by AI.
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