'Se·Dae·Gwang' Making a Name for Itself in the Provinces

[Asia Economy Reporter Kim Yuri] The real estate markets in Sejong, Daegu, and Gwangju are attracting attention. With plans for expanded metropolitan transportation networks underway, demand is expected to increase.

According to Real Estate 114 on the 6th, the cumulative land price increase rates for Sejong, Gwangju, and Daegu from the first to third quarters of last year were 4.0%, 3.6%, and 3.4%, respectively, surpassing the national average of 2.9% during the same period. Apart from the Seoul metropolitan area, including Seoul (3.8%) and Gyeonggi (3.1%), these three regions were the only ones outside the capital area to exceed the national average. Experts cite the development of transportation infrastructure such as railroads and roads as the main reason for the rise in land prices and the real estate market in these areas.

In Sejong City, the development of the 2nd Residential Zone commercial area and Sejong Venture Valley is underway, with transportation network expansion issues focused on the Seoul-Sejong Expressway, the extension of Daejeon Urban Railway Line 1, and the promotion of the KTX Sejong Station. Additionally, a large-scale supply of approximately 22,000 households is expected by 2021. Yeokyunghee, Senior Researcher at Real Estate 114, stated, "Sejong, designated as a speculative area and speculative overheating district, has strict regulations resulting in fewer housing transactions, but the average sale price per household is 370.04 million KRW, making it the most expensive housing market in the provinces," adding, "As of the end of November 2019, the average apartment pre-sale price per 3.3㎡ in Sejong was lower than nearby Daejeon (12.49 million KRW), so there is a high possibility of capital gains after winning the subscription."

Gwangju is also cited as having continued its housing price increase last year due to transportation network expansion. The Gwangju Urban Railway Line 2, which will operate as a circular line passing through the entire city, is scheduled to open sequentially in three phases from 2023 to 2025. The Honam High-Speed Railway section from Gwangju Songjeong to Mokpo is also set to open in 2025. The area around KTX Gwangju Songjeong Station is planned to be developed as a "Regional Economic Hub KTX Investment Leading District," so synergy effects linked to transportation improvements are expected in 2020 as well.

In Daegu, as of the end of November 2019, apartment prices in Seo-gu showed the largest increase of 4.2%. This is largely attributed to the upcoming opening of KTX Seodaegu Station and the development of a complex transfer center scheduled for 2021. The Daegu Metropolitan Railroad Construction Project, connecting Gumi through Daegu to Gyeongsan, is also underway. Demand is expected to be high around Dalseong Park Station (tentative name) and Daegu Station areas.

This content was produced with the assistance of AI translation services.