Recent government measures to increase housing supply are anticipated to impact the South Korean auction market, with a likely decrease in winning bids and competition rates, excluding the affluent Gangnam districts.
The South Korean government announced a comprehensive package of measures on September 7, 2024, aimed at expanding the housing supply. These policies are expected to considerably influence the auction market, especially for properties outside of the three gangnam districts (Gangnam-gu, Seocho-gu, and Songpa-gu) in Seoul.
According to market analysis, the increased housing supply will likely reduce demand at auctions, leading to lower winning bids. The competition rate – the number of bidders per property – is also projected to decline in the short term. This shift is a direct outcome of the government’s efforts to stabilize housing prices and increase accessibility.
