Property in Meilen ZH auctioned off in 30 seconds: Switzerland's fastest foreclosure auction
April 16, 2025
A luxury ground-floor apartment on the Zurich Gold Coast changed ownership on March 29, 2025 in just half a minute. The Luzerner Kantonalbank (LUKB) received the award with its first bid of 2.36 million CHF, marking what is likely the fastest conclusion of a Swiss forced auction to date.
1 Overview of the property
- Location: Quiet neighborhood at the upper village edge of Meilen ZH, lake view, and quick public transport connections.
- Type & Size: 3-room ground-floor apartment, 158 m² net living space, built in 2007.
- Features: 40 m² terrace, open living/dining area, two underground parking spaces, cellar unit.
- Official appraised value: 2.6 million CHF, minimum bid 2.327 million CHF.
- Award price: 2.36 million CHF (5% below appraisal), auction duration 30 seconds.
“Good, then that’s taken care of,” commented the head of the office after the third strike of the hammer, just 30 seconds after he opened the auction.
2 Why only 30 seconds? Process of the quick award
| Timestamp | Key event |
|---|---|
| 14:00:00 | Opening of the auction, reading of the conditions. |
| 14:00:18 | Only bid: 2.36 million CHF from LUKB (submitted in writing in advance). |
| 14:00:25 | First call “For the first time”, no counter-bids. |
| 14:00:29 | Second call “For the second time”, silence in the hall. |
| 14:00:30 | Third call “For the third time”, hammer strike, award. |
The record was achieved because the mortgage-lending bank exercised its right to make a coverage offer exactly equal to its claim plus a premium. Without any counter-bidders, the auction was practically a formality.
3 Legal foundations of the mortgage enforcement
3.1 Mortgage enforcement according to SchKG
- Enforcement request (Art. 67 ff.): Tax debts & bank claims triggered the process.
- Mortgage enforcement request (Art. 151): submitted by LUKB.
- Appraisal (Art. 140): Report set the value at 2.6 million CHF.
- Public announcement (Art. 156): 30 days before the auction in the official bulletin.
- Auction without double call: because there was only one creditor secured by real estate.
- Award & down payment (Art. 143, 136): 100,000 CHF immediately, rest within 30 days.
3.2 Supremacy of the mortgage claim
Two mortgage deeds totaling 2.1 million CHF in favor of LUKB were registered in the land register. Since this claim is ranked, the auction proceeds go to the bank first up to that amount, and after deducting interest and procedural costs, there is often little left for subordinate creditors.
4 Economic classification
- Purchase price vs. market value: 2.36 million CHF corresponds to about 14,700 CHF/m², below the current average Gold Coast prices (≈ 16,000 CHF/m²).
- Costs for the bank: Effectively, LUKB only pays the difference between the award and the mortgage amount (~ 260,000 CHF), a strategically advantageous move.
- Creditors’ pyramid: The municipality of Meilen (tax debt 670,000 CHF) and other suppliers go empty-handed or must write off claims.
- Signal effect: Forced sales can proceed incredibly quickly, anyone who wants to bid must have all means ready before the auction begins.
5 Opportunities & success factors for future bidders
- Study the list of encumbrances: Rank and amount of mortgages determine whether a “bargain” is realistic.
- Financing readily available: Cash deposit or bank guarantee (usually 100,000 CHF) must be physically present.
- Utilize room psychology: Written bids make a statement, but those who hold up live can outbid banks.
- Define price ceiling: In high-price regions, a clear limit protects against overconfidence.
FAQ about the 30-second auction
Can I make a counter-bid after the first call?
Yes, any bid is valid until the third call, but only if you bid immediately verbally and can provide security.
Why didn’t anyone else bid?
The high mortgage amount left little room for profit, many professionals avoid such situations.
Do I have to compete with a bank?
Not necessarily, if you significantly exceed their coverage offer, the bank gets its money, but you receive the award.
6 Learnings from Meilen
- Speed is (almost) everything: Those who are prepared can secure a prime location in seconds.
- Careful file review: Check mortgage ranks, rental contracts, and easements in advance.
- Public transparency: The incredibly quick process shows how clearly regulated Swiss mortgage enforcements are, ensuring fairness for all parties involved.
7 Conclusion
The record auction in Meilen demonstrates that Swiss forced auctions are not only secure and transparent but can also proceed astonishingly quickly. Those who master the law, ranking, and financing can acquire property in just a few seconds, providing opportunities for experienced investors as well as risk-taking individuals.
