Apartment auctions in provincial cities including Cheongju, Ulsan and Daejeon are drawing dozens of bidders for properties priced between 100 million won and 300 million won ($70,000 to $210,000), with competition intensifying by the day. Analysts attribute the surge to the absence of residency requirements that allow jeonse (lump-sum deposit lease) arrangements, combined with low price barriers attracting both investors and end-users.
According to GG Auction, a real estate auction data firm, 51 bidders competed for a 60-square-meter unit at Jungheung Village Myvill in Sangdang-gu, Cheongju at the Cheongju District Court on January 2. The property sold for 147.99 million won, more than 30 million won above the starting price, though still approximately 30 million won below market value—a gap that analysts say fueled investor interest.
On the same day, 46 bidders participated in an auction for a 59-square-meter unit at Dong-A Apartment in Bangchuk-dong, Asan at the Cheonan branch of Daejeon District Court. The property found a new owner at 99.79 million won, or 95 percent of its appraised value. The "under 100 million won apartment" label drew concentrated attention from investors.
While popular areas such as Seoul's Gangnam three districts and the Han River belt continue to see winning bids exceeding 130 to 140 percent of appraised values, provincial markets are seeing demand concentrate on low-priced, smaller apartments. Provincial properties are particularly attractive because they have no residency requirements, enabling leverage investment through auction balance loans or jeonse deposits.
Tax advantages also apply. Properties outside the Seoul metropolitan area with officially assessed prices of 200 million won or less are excluded from multi-home ownership counts, allowing owners to pay the basic acquisition tax rate of 1 percent instead of higher rates. Acquisition tax burdens are lower, and properties that have gone through failed auctions may be purchased at even cheaper prices.
"Provincial apartments in the 100 million won range offer acquisition tax reductions, so entry barriers are not high even for multi-home owners or investors," said Lee Ju-hyun, senior researcher at GG Auction. "For apartments with high jeonse-to-price ratios, buyers can purchase with minimal capital by leasing out the property immediately after winning the bid."
Among nationwide auction cases last month, nine of the top 10 properties by number of bidders were provincial apartments, with four selling for 150 million won or less. Analysts note that Cheongju is benefiting from development tailwinds including SK hynix's new factory construction, while Ulsan is supported by steady industrial demand.
"Cheongju has positive factors such as the new SK hynix factory, and Ulsan also has consistent housing demand," Lee added. "In provincial areas where housing markets are stable, there is demand from both investors and end-users seeking homeownership."
