With charter scams of the so-called 'villa king' style appearing one after another in the metropolitan area, the successful bid price of villas in the court auction market has declined significantly.



According to Jiji Auction, a court auction information company, the successful bid price for townhouses and multi-housing in Seoul this month recorded an average of 79.8%, down from 84.9% last month, and fell below 80%.



This is the lowest figure in three years since December 2019 (79.3%).



In the Incheon area, where charter fraud by 'villa kings' continues along with the entire Hwagok-dong area of ​​Seoul, the villa successful bid rate fell to 70.7% last month, the lowest in 1 year and 7 months since May 2021 (69.4%).



In the case of Seoul, a total of 637 cases were auctioned this month, and only 71 cases, or 11%, were successful, while 212 cases were auctioned in Incheon, and 53 cases, or 25%, found their owners.



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There is an analysis that the investment sentiment for villas has also temporarily contracted in the aftermath of the villa king incident, which recently hit the center of the metropolitan area such as Seoul and Incheon.



The bid price for apartments also fell compared to last month due to high interest rates and the aftermath of the economic recession.



The bid-ask rate for apartments in Seoul in December was 76.5%, the lowest in 9 years and 11 months since January 2013 (74.1%).



The successful bid rate (the number of successful bids compared to the number of auctions) was 17.9%, which was slightly higher than last month (14.2%), but still showed poor results in the 10% range.



The bid price for apartments in the Gyeonggi area was 73.7%, the lowest in 10 years and 4 months since August 2012 (72.8%), and 68.0% in Incheon, the lowest in 8 years and 6 months since June 2014 (53.7%). I did.



Due to the recent decline in house prices and the transaction cliff, only urgent sales are being sold, and as the auction appraisal price is higher than the actual transaction price, the auction winning price is also falling.



Commercial real estate auctions, such as shopping malls, are also cold.



The average successful bid price for shopping malls in Seoul in December was 68.7%, the lowest since February this year (64.7%).



Five open-type shopping malls at Techno Mart in Guui-dong, Gwangjin-gu and Sindorim Techno Mart in Guro-dong, Guro-gu were auctioned off at 7.9% and 9.2% of the appraised value, lowering the successful bid rate.



Experts predicted that the auction market would continue to suffer as well as the trading market next year.



Lee Joo-hyun, a senior researcher at GG Auction, said, “If the high interest rate trend continues next year amid falling house prices and transaction cliffs, the successful bid rate may drop further. there is," he said.