[Issue] "Retail Property Appraised at 11 Billion Won Sells for 5.3 Billion"... Shadows Over Office and Commercial Property Auctions

99 Out of 695 Office and Commercial Auctions Resulted in Successful Sales;
Average Number of Bidders was 1.8
Nearly 20 Bidders Crowded Auctions for Some Apartments in Muan and Sinchang-dong
Land Winning Bid Rate Reaches 65.5%, Marking a 22-Month High

Last month, there were 695 auctions for office and commercial facilities in Gwangju and Jeonnam, but fewer than 100 of them were successfully sold. On average, there were fewer than two bidders per property, indicating weak demand. In contrast, some apartments in Muan and Sinchang-dong, Gwangju, attracted nearly 20 bidders each, showing a stark difference in buyer demand depending on the specific property, even within the same region.

According to the 'August 2026 Auction Market Trend Report' by GGI Auction released on the 15th, a total of 2,772 real estate auctions were held in Gwangju and Jeonnam last month, resulting in 576 successful sales. This translates to a winning bid ratio of 20.8%, meaning that only about one out of every five properties put up for auction was sold.

Office and Commercial Facilities: Only 14 Out of 100 Auctioned Properties Sold

Gwangju District Court Auction Court. Photo by Bohyun Song

In the office and commercial facility segment in Gwangju and Jeonnam, 695 properties went to auction but only 99 were successfully sold. The winning bid ratio was 14.2%. Office and commercial facilities include retail units, officetels, and similar types of properties.

The winning bid rate was 44.4%, and the average number of bidders per property was 1.8. This figure represents the ratio of the winning bid to the appraised value; for example, a property appraised at 100 million won would have been sold for 44.4 million won.

One retail property in Chipyeong-dong, Seo-gu, Gwangju, had an appraised value of 11,059 million won but was sold at approximately 5.3 billion won. This amounts to 47.9% of the appraised value, and there was only one bidder for the property.

In contrast, another neighborhood retail property in Mareuk-dong, also in Seo-gu, attracted 21 bidders. The winning bid for this property was 917 million won, amounting to 63.5% of the appraised value.

The Number of Apartment Auctions Rose by 90, but the Winning Bid Rate Hit a Yearly Low

The number of apartment auctions increased from 446 in July to 536 in August. This is a rise of 90 auctions, or 20.2%, in just one month. During the same period, the winning bid rate dropped from 82.8% to 74.3%—a decrease of 8.5 percentage points—marking the lowest rate recorded this year.

Some individual apartments drew large numbers of bidders. For example, a unit in Seora Apartment, Muan-eup, Muan-gun, attracted 22 bidders and was sold for 79.72 million won. The appraised value for this property was 82 million won.

Trends in Auctioned Apartment Cases and Sale-to-Price Ratios in Gwangju and Jeonnam. The number of cases conducted in August reached 536, increasing by 20.2% compared to the previous month, while the sale-to-price ratio hit this year's lowest at 74.3%. Gigi Auction

Another unit in Sinchang 2-cha Booyoung in Sinchang-dong, Gwangsan-gu, Gwangju, drew 19 bidders. This property, appraised at 260 million won, was sold for 252.78 million won. Both of these apartments were sold at 97.2% of their respective appraised values, which is well above the regional average winning bid rate for apartments.

Looking at the residential sector as a whole, including apartments, there were 841 auctions and 239 successful sales. The winning bid ratio was 28.4%, and the winning bid rate was 67.6%.

Land Winning Bid Rate Hits a 22-Month High

Court enforcement officer office view. In August, 695 auctions for business and commercial facilities in Gwangju and Jeonnam were conducted, but only 99 were successfully bid. Photo by Bohyun Song

The winning bid rate for land auctions in Gwangju and Jeonnam jumped from 51.2% in July to 65.5% in August, a 14.3 percentage point increase. This is the highest rate recorded since October 2024, or in 22 months.

Last month, there were 1,157 land auctions in the region, leading to 222 successful sales. The winning bid ratio was 19.2%, and the average number of bidders per property was 1.5.

A local real estate industry representative stated, "Both apartments in Muan and Sinchang-dong, Gwangju, attracted nearly 20 bidders each and were sold at 97.2% of their appraised values. This is significantly higher than the average apartment winning bid rate for the region, which stood at 74.3%," and added, "Even though the total number of auction listings rose, in order to win these apartments, bidders had to submit offers that were only 3% below the appraised price at most."

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