'30㎝' of land, appraised at 5,670 won… A new record for 'triple lowest' auction in Chuncheon

The smallest area of land in auction history was bid at the lowest appraised price and awarded at the lowest final bid, in a so-called 'triple lowest' case that occurred in Chuncheon, Gangwon Province.

According to the auction industry on the 3rd, the Chuncheon District Court's Auction Division 3 conducted an auction on October 28 for a portion of land designated for livestock (0.091㎡) located in Gwancheolli, Nam-myeon, Chuncheon. This parcel of land, measuring approximately 30 centimeters on each side, corresponds to a 1/11 share of a total area of 1㎡, making it the smallest in area among the lands up for auction.

The item was included in a collection of four properties owned by the debtor, consisting of farmland and roads, that were submitted for a bulk auction by a financial institution, with an appraised value of 5,670 won, the lowest recorded amount ever. The final bid price was 10,000 won, which is 176.37% of the appraised value, with only one participant in the bidding. The bidding deposit was 567 won, also a record low, being the third lowest ever. If the winning bidder pays the remaining balance, all three values—area, appraised price, and winning bid price—will set new lowest records in auction history.

An unprecedented case compared to historical records

According to the law firm Myungdo, the previous record for the smallest area was 0.1㎡ of shared property in Heukseok-dong, Dongjak-gu, that came up for auction in April 2020 at the Seoul Central District Court. This property received bids from nine participants and sold for 699,000 won, which is 304.6% of the appraised value (229,450 won).

The record for the lowest appraised value prior to this was a 1.8㎡ road in Gahak-ri, Wando-gun, Jeollanam-do, assessed at 14,525 won in May 2023. This property was also sold for 21,000 won after the fifth round of bidding.

The record for the lowest final bid price is for a 33㎡ field in Songsan-ri, Ugyeong-myeon, Dangjin-si, South Chungcheong Province, which was sold for 18,100 won, just 6.09% of the appraised value (297,000 won) after failing to sell in the previous four rounds of bidding. Most recently, on September 9, an 8.4㎡ rice paddy in Sangbuk-myeon, Yangsan-si, Gyeongsangnam-do, was bid at 11,000 won, but the court ultimately refused to finalize the sale.

The trap of shared property auctions… Practical interest is close to 'zero'

The extremely low appraised and final bid prices are attributed to the characteristic of 'shared property.' Co-owners cannot use or develop the property arbitrarily, and it is virtually impossible to sell or utilize it without the consent of all other property owners. Particularly in cases where 11 individuals co-own a 1㎡ property, exercising practical rights is almost impossible.

Auction experts state that while record-low figures may be intriguing, many cases are close to so-called 'commemorative bids' with no real benefit. They advise investors to be cautious of the risks associated with shared property ownership.

Image source: Shared property on a road in Gangwon's Chuncheon, which set the record for the lowest appraised and final bid prices in auction history / Photo credit: Gigi Auction, unrelated material photo / gettyimagesbank