Properties sold off in competitive auctions at bankruptcy court hit 18-year low last month to underscore the lethargy in the real estate market in Korea under multiple regulations.
Property offering were lowest in a year, tallied at 8,309 in February, down 25 percent on month, according to data released by local property information provider GGAuction on Wednesday. Among them, 2,927 were awarded, the lowest monthly settlements since the data has been traced from January 2001.
The hammer price averaged at 69.6 percent of the appraised value last month after falling for nine months in a row from 75.3 percent in May last year.
The hammer ratio in residential properties was off 2.5 percentage points on month to 77.4 percent, land and industrial facilities down 2.9 percentage points at 67.1 percent and 67 percent, respectively. Only office and commercial properties gained 6.1 percentage points in the ratio.
Property auction declined the largest 55 percent to 2,366 in suburban areas neighboring Seoul, of which 930 were sold at 72.3 percent below the appraised value. In the rural areas, 1,997 out of 5,943 properties were sold at 68.2 percent lower prices.
By Park In-hye and Lee Ha-yeon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]