SEOUL, Jun. 11 (Korea Bizwire) — The average number of home auctions throughout South Korea has surpassed 5,000 cases over the last two months.
According to GG Auction, a South Korean court auction firm, the number of auctions of residences throughout the entire country reached 5,261 cases last month, surpassing 5,000 for the second month in a row following 5,006 cases in April.
The feat is the first of its kind since 2015.
The increasing number of residences put up for auction is seen as the result of stronger loan restrictions and the aftermath of a drop in lease prices as well as the sale of residences purchased by investors or lease businesses.
“Since the end of last year, an economic slump has been leading to an increase in the number of auctions of residences,” said Jang Geun-seok, a departmental chief at GG Auction.
Residences are increasing in proportion to other facilities put up for auction, such as commercial and business facilities, land, and industrial facilities.
Last month, residences accounted for 47.2 percent of all auctions, increasing by 3 percent since April (44.2 percent), and reaching a high not seen since December 2006 (48 percent).
“Residences, unlike other facilities, link directly to one’s everyday life, so putting them up for auction indicates that the quality of life among tenants or owners is deteriorating,” said a source from GG Auction.
The successful bid rate, the proportion of the winning bid price compared to the appraised value, dropped from 71.6 percent in April to 67.3 percent in May.
Gwangju had the highest successful bid rate at 90.7 percent, followed by Sejong (90.4 percent) and Seoul (89.9 percent).
Ashley Song (email@example.com)