30 bidders chase Songpa villa at W500m above minimum price

As Seoul apartment prices continue to climb steeply, interest in villas — low-rise multi-unit housing — slated for redevelopment has grown sharply, and the auction market is reflecting the same trend. While overall auction success rates remain low, bidders are converging on villas with redevelopment potential, with some units selling for hundreds of millions of won above the minimum bid. Analysts say the pattern reflects demand from both investors and end-users seeking to secure apartment move-in rights at a relatively lower cost.

According to GG Auction, an auction data firm, a 131-square-meter unit at Hyundai Yeonlib in Garak-dong, Songpa-gu went to auction for the second showing on Monday, with a minimum bid of 888 million won ($669,000), and sold for 1.28 billion won. Twenty-three bidders participated, and the winning price exceeded the appraised value of 1.11 billion won by more than 100 million won, putting the sale-to-appraisal ratio at 115 percent.

On the same day, a 157-square-meter unit at Hyundai Yeonlib also found a buyer in its second showing. Seven bidders competed, with the minimum bid set at 1.01 billion won, and the unit sold for 1.5 billion won — nearly 500 million won above the minimum and more than 200 million won above the appraised value of 1.26 billion won.

Industry observers say it is unusual for multiple bidders to compete over villa units at auction, given that most such properties fail to sell and are relisted repeatedly.

"Auction indicators including the sale-to-appraisal ratio have been trending down since October, so attracting more than 20 bidders in this environment is a rare occurrence," said Kang Eun-hyeon, head of the auction research center at law firm Myeongdo. "Villas that do sell at auction are either well-located properties with redevelopment upside or units where the buyer does not have to assume the seller's deposit obligations."

Analysts attribute the strong interest to the property's location in Garak-dong, Songpa-gu — one of Seoul's three premium Gangnam districts — and to its history of redevelopment attempts, which has fueled expectations that new apartment construction could eventually follow. The area around 32 Garak-dong, where Hyundai Yeonlib stands, was previously the site of a redevelopment project by the Garak 2 Local Housing Association. The association's establishment permit was revoked in 2024 and no concrete redevelopment plan is currently in place, but demand has concentrated there on the possibility that efforts could resume.

The units' large land shares — a key indicator of project viability in any future redevelopment — also boosted their investment appeal. The 131-square-meter unit sits on a 140-square-meter plot, while the 157-square-meter unit has a land area of 168 square meters.

"The land share is almost on par with a standalone house," Kang said. "If redevelopment moves forward, that would work in the owner's favor during the rights calculation process, which likely drove stronger preference for these units."

Lee Ju-hyeon, a senior researcher at GG Auction, said investors are shifting toward villas with redevelopment potential as an alternative to apartments. "Because investing in apartments has become difficult, people are moving into the row-house and multi-unit market where redevelopment issues are in play," Lee said. "The Songpa villa cases are also a result of investors turning their eyes to villas as apartment prices have risen so sharply."

Similar scenes are playing out elsewhere, as bidders pile into well-located Seoul villas with redevelopment potential. A 55-square-meter multi-unit property at 106 Myeongil-dong, Gangdong-gu — with a land area of 38 square meters — drew 13 bidders at its first auction on Oct. 12, selling for 585.5 million won against an appraised value of 490 million won. The property falls within a zone designated for fast-track integrated redevelopment planning.

A 21-square-meter unit at Traumbaum in Macheon-dong, Songpa-gu, located in the Macheon District 2 redevelopment zone, sold on Oct. 12 in its first showing for 653 million won — more than 300 million won above its appraised value of 326 million won. The unit's land share is just 10 square meters, meaning the effective price per 3.3 square meters exceeded 200 million won.

Outside these select properties, however, the broader Seoul villa auction market remains cold. The sale rate for multi-unit housing — the share of auctioned properties that actually sell — was limited to 24.9 percent, with less desirable units continuing to fail repeatedly at auction.