"Jeong Yu-kyung Is a Neighbor"...Itaewon Standalone House with Record 23.2 Billion Won Appraisal Up for Auction [Real Estate AtoZ]

Land Area of 370 Pyeong
Initial Appraised Value: 23.2 Billion Won
Approximately 62 Million Won per Pyeong

A detached house with a land area of 370 pyeong, located in Seoul's affluent Itaewon district, has been put up for auction with an appraised value in the 23 billion won range. This marks the highest appraised value ever recorded for a detached house in the history of domestic auctions, drawing attention as to whether it will be successfully sold.

According to Gigi Auction on May 20, an auction will be held at the Seoul Western District Court on May 26 for a detached house in Itaewon-dong, Yongsan-gu, with a land area of 370 pyeong (1,223.6 square meters) and a total floor area of 460.6 square meters.

The appraised value is 23,288,869,000 won. This surpasses the previous record set by a detached house in Sinsa-dong, Gangnam-gu, which appeared at auction in 2012 with an appraised value of 22,856,040,000 won. The Sinsa-dong property was won by Simone, an ODM company manufacturing handbags for global fashion brands such as Burberry and Tory Burch, at a winning bid of 28,790,914,000 won, representing a bid-to-appraisal ratio of 125.61%.

A single-family house with a land area of 370 pyeong located in Itaewon-dong, Seoul, has been put up for auction with an appraised value of around 23 billion KRW. Provided by Gigi Auction

Additionally, a detached house in Seogyo-dong, Mapo-gu, formerly owned by the late Lee Jae-woo, chairman of Daelim Trading, was auctioned with an appraised value of 19,357,560,000 won at the time. That property failed to sell in the initial round, causing the minimum price to drop to 15,486,040,000 won, or 80% of the original appraised value, but the auction was ultimately withdrawn.

The detached house now up for auction is jointly owned by seven individuals and has come to auction following a partition lawsuit. A partition lawsuit is a civil litigation filed when co-owners of real estate cannot reach an agreement on dividing the property according to their shares. The court typically orders either a monetary settlement or auction.

In the market, some predict that the property will soon find a buyer, given its prime location amid high-value detached houses in Hannam-dong and the surrounding market prices. The property is just a seven-minute walk from Itaewon-ro 55-gil, where the residences of domestic conglomerate leaders such as Jung Yu-kyung, chairman of Shinsegae Co., are concentrated, and is located in an affluent area home to diplomatic residences including the Belgian ambassador's residence. Recently, a detached house owned by Jung Yong-jin, chairman of Shinsegae Group, with a land area of 1,104 square meters, was reportedly sold to Booyoung Housing for 25,550,000,000 won. Another detached house in the same area, with a land area of 1,104 square meters (333 pyeong), was sold for 32 billion won in May last year.

Kang Eunhyun, director of the Auction Research Institute at Myungdo Law Firm, stated, "The appraised value appears high due to the large land area, but calculated per pyeong (3.3 square meters), it comes to about 62.83 million won. Given the location and current market prices, it's not necessarily an expensive appraisal, so it could be sold after a few failed auctions," he added.

This content was produced with the assistance of AI translation services.