[Report] "84㎡ Asking Price Exceeds 1 Billion Won" Sejong Housing Prices Stirring Ahead of Administrative Capital Relocation

Real Transaction of Saetteul Village 11 Complex 84㎡ at 930 Million KRW
Asking Price Already Over 1 Billion KRW... 700 Million KRW Transaction in December Last Year

Sejong Housing Prices Show Highest Nationwide Increase for 2 Consecutive Weeks
'Buzz' Over Administrative Capital Relocation Plan

Capital Region Housing Price Stability Claimed but Negative Impact on Sejong
Interest Also Focused on Nearby Land

[Sejong=Asia Economy Reporter Lee Chun-hee] "The asking price for an 84㎡ (exclusive area) house in Sejong City has exceeded 1 billion KRW" (Representative A of a real estate agency in Saerom-dong, Sejong City)

"Since housing regulations are strict, the surrounding land expected to be developed is also stirring." (Representative B of a real estate agency in Geumnam-myeon, Sejong City)

On the 23rd, brokerage offices in the apartment complexes around Saerom-dong, Sejong were busy with continuous phone calls. Most were homeowners raising their asking prices and buyers looking for affordable properties.

As the ruling party publicized the relocation of the administrative capital, housing prices in Sejong have surged. Despite the government's strong measures, Seoul's housing prices have not stopped rising, and the administrative capital relocation debate is fueling another wave of price increases.

According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system on that day, an 84㎡ unit in 'The Sharp Hillstate' at Saetteum Village 11 Complex in Saerom-dong was traded for 915 million KRW on the 8th of last month. This is the first time in Sejong that a transaction price for a unit below the 'national housing size (85㎡)' has exceeded 900 million KRW. On the 7th, it changed hands for 930 million KRW, pushing the price even higher.

Representative A of the Saerom-dong agency said, "In the Saetteum Village area, the asking price for 84㎡ units has already surpassed 1 billion KRW." He explained, "Last December, you could buy it for 700 million KRW, but this year it has risen too much." In fact, the unit size was traded between 675 million and 810 million KRW last December. The 810 million KRW transaction also occurred after the December 16 real estate measures.

Sejong Saerom-dong Saetteul Village Complex 11 'The Sharp Hillstate' exterior view. (Photo by Lee Chunhee)

Although the relocation of the administrative capital is being promoted under the banner of 'stabilizing housing prices in the metropolitan area,' the fact that Sejong's housing price rise has been even hotter than the metropolitan area is why this side effect was expected.

As real transaction prices soar, homeowners are competitively raising prices. According to local brokerage offices, some popular complexes have 84㎡ asking prices exceeding 1 billion KRW, surpassing the market prices of many metropolitan area regions.

According to the weekly apartment sales price index by the Korea Real Estate Board on that day, housing prices in Sejong rose by a whopping 20.2% this year. It ranks second nationwide after Paldal-gu, Suwon-si, Gyeonggi-do, which rose 20.6%. Especially, while the rise in regulated areas such as the metropolitan area has slowed due to consecutive measures, Sejong continues its upward trend. As of the 13th, it rose 1.46% compared to the previous week, showing the highest increase nationwide for two consecutive weeks. It has risen more than 1% for four consecutive weeks.

There are also reports that not only apartments but nearby land is also stirring. Representative B of the local agency said, "The administrative capital relocation discussion is further increasing the already rising housing price growth in Sejong City," adding, "Recently, interest has shifted to land expected to benefit from development, avoiding housing regulations." He added, "After the ruling party's statement on the administrative capital relocation on the 20th, even the land listings disappeared."

According to the Korea Real Estate Board's land price change rate, land prices in Sejong rose 0.29% last month. Since the related statistics began in July 2012, it has shown a continuous upward trend without ever declining.

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