Sejong Apartment Sale Prices Rise 14.3% in 4 Months... Gap Widens with Daejeon

[Asia Economy Reporter Donghyun Choi] The gap in average apartment sale prices per 3.3㎡ between Sejong City and Daejeon City is widening again. Due to a balloon effect caused by real estate regulations, Daejeon apartment prices surged, narrowing the price gap with Sejong apartments. However, since this year, Sejong apartment prices have risen, causing the price gap between the two to expand once more.

On the 10th, according to a review of KB Real Estate Live On’s housing price trends by real estate information provider Economy Man Lab, in May last year, the apartment prices per 3.3㎡ in Sejong and Daejeon were 11.136 million KRW and 9.389 million KRW respectively, with a price gap of about 1.747 million KRW. Subsequently, Daejeon apartment prices narrowed the gap to 785,000 KRW by December last year due to the influence of non-regulated areas and development benefits such as innovation cities attracting investment demand. However, since January, Sejong apartment prices have risen, with prices per 3.3㎡ in Sejong and Daejeon at 13.253 million KRW and 11.37 million KRW respectively, widening the price gap again.

Despite being a regulated real estate area, the rise in Sejong apartment prices is attributed to the resolution of apartment oversupply and transportation benefits improving access to Seoul. In recent years, Sejong City experienced an oversupply of apartments, with supply exceeding housing demand, preventing price increases. However, as Sejong’s population rapidly increased, the oversupply issue was largely resolved. According to Statistics Korea, Sejong’s population was about 325,000 in May last year but rose by 6% to approximately 345,000 in May this year.

Additionally, Sejong City is promoting the ITX (Intercity Express Train) Government Sejong Complex Station to improve Seoul accessibility. In January, Sejong City announced plans to connect the Government Sejong Complex Station directly to Seoul by linking the Gyeongbu Line railway network. A railway connecting Sejong City from Yeonpyeong Station on the Gyeongbu Line will be installed and linked to the currently planned Daejeon-Sejong Metropolitan Railway in Sejong. This is expected to reduce travel time from Sejong Complex to Seoul to around 80 minutes, which is analyzed as a factor in the rise of Sejong apartment prices.

The upward trend in Sejong apartment prices is also confirmed by actual transaction prices from the Ministry of Land, Infrastructure and Transport. For example, a 119㎡ (exclusive area) unit in ‘Cheotmaeul 1st Complex (First Prime)’ located in Hansol-dong, Sejong, was sold for 770 million KRW (24th floor) last month. Compared to the 650 million KRW (19th floor) transaction in January, this represents a 120 million KRW increase in just four months. The ‘Horyeoul Village 4th Complex Central Park’ 111㎡ unit in Boram-dong was sold for 758 million KRW (14th floor) in January but rose to 850 million KRW (5th floor) last month, an increase of 92 million KRW. Similarly, the ‘Prugio 8th Complex’ 84㎡ unit in Areum-dong increased from 339 million KRW (6th floor) in January to 450 million KRW (5th floor) last month, a rise of 111 million KRW.

Sejong apartment transaction volumes are also on the rise. According to the Korea Real Estate Board, from January to April this year, Sejong City recorded 5,950 apartment transactions, more than double the 2,943 transactions in the same period last year. Oh Dae-yeol, head of the Economy Man Lab research team, said, "Sejong’s apartment prices had not risen due to oversupply, but as the number of new units decreased and the population increased, subscription competition soared and oversupply was resolved. If Seoul accessibility improves further, the apartment price gap with Daejeon could widen even more."

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