This study explores both the difference of winning bid price between general auction and auction of co-ownership share as a special auction example and what kinds of factors do make such price differential effect. This study utilizes various character...
This study explores both the difference of winning bid price between general auction and auction of co-ownership share as a special auction example and what kinds of factors do make such price differential effect. This study utilizes various characteristics as independent variables such as court auction, co-ownership share, physical condition and environmental condition focusing on residential property in Seoul. We use the real court auction data from 2009 to 2016. Dependent variable is a typical one, winning bid price per ㎡.
We find that the number of share holders, property location, floor area size, the number of bath rooms, the number of auction failures, ownership share ratio, land area size, distance from nearest subway station, near the road dummy and the number of bidders are statistically significant variables.
Through this research findings, we put an emphasis on the number of share holders variable is one the most important factors in determining the winning bid price of co-ownership share auction where there are more than tow co-owners. Therefore the more there are co-owners, the more important for a bidder to negotiate with other co-owners.