'Administrative Capital Relocation to Sejong, Where House Prices Rose 21%, to Stabilize Metropolitan Area Housing Prices?'

On the afternoon of the 22nd, a citizen inquiring about apartment listings and a real estate agent are discussing while looking at a map at a real estate agency in Sejong City.
[Image source=Yonhap News]

[Asia Economy Reporter Lee Chun-hee] Housing prices in Sejong have risen by 21.4% since the beginning of this year, marking the highest cumulative increase nationwide. The upward trend has continued for 37 consecutive weeks since November last year.

On the 23rd, the Korea Real Estate Board announced the weekly apartment price trends nationwide for the third week of July (as of the 20th), reporting that sale prices increased by 0.12% and jeonse prices rose by 0.14%.

Most regions, including the metropolitan area, Seoul, and provinces, showed a decrease in the rate of increase compared to the previous week. The metropolitan area’s growth slowed from 0.16% last week to 0.13%, and Seoul’s increase also slightly decreased from 0.09% to 0.06%.

In Sejong, prices rose by 0.97%, showing a reduced upward trend compared to 1.46% the previous week, but still nearly 1%, making it the only metropolitan local government nationwide with an increase exceeding 0.25%.

The rise in Chungnam, adjacent to Sejong, was also significant. Chungnam’s housing prices increased by 0.24% compared to the previous week, ranking second in steepness after Sejong. In particular, Gongju City in Chungnam, which borders Sejong, saw a 0.96% increase compared to the previous week, showing a rise comparable to Sejong.

Weekly Apartment Sale Price Index Change Rate as of July 20 (Provided by Korea Real Estate Board)

Seoul’s prices rose by 0.06% compared to the previous week, with a slight decrease in the rate of increase. A Korea Real Estate Board official stated, "Due to the implementation of the June 17 real estate measures and the announcement of the July 10 supplementary measures, overall purchase inquiries have decreased and a wait-and-see attitude has emerged, leading to a reduction in the rate of increase across all areas of Seoul."

By district, Dobong and Mapo Districts (0.09%), and Eunpyeong, Yongsan, and Nowon Districts (0.08%) showed notable upward trends. The board explained, "In Mapo District, the increase was centered around the Dohwa and Singongdeok-dong station areas, and in Dobong District, it was mainly in mid- to low-priced complexes." However, it was added that Dobong District’s increase narrowed compared to 0.12% in the second week.

The Gangnam 4 Districts showed similar increases of 0.06% in some areas of Songpa, Gangnam, and Seocho Districts, while Gangdong District rose by 0.04%. However, due to the rise in property holding taxes and on-site crackdowns on overheated areas starting from the 15th, buying demand has somewhat decreased.

Nationally, weekly apartment jeonse prices showed a similar rate of increase as the previous week. The metropolitan area maintained a 0.16% increase, the same as the previous week. Seoul rose by 0.12%, and provinces by 0.13%, each recording a 0.01 percentage point change compared to the previous week.

By region, Nam District in Ulsan showed the highest increase at 1.05%. This is analyzed to be due to relocation demand caused by the redevelopment project in B-08 District, where 2,033 apartments are being newly built on an 110,794㎡ site in Sinjeong-dong.

Sejong also showed a 0.99% increase mainly in major complexes such as Saerom and Boram-dong, amid expectations for infrastructure expansion including the opening of Chungnam National University Hospital and the promotion of a BRT auxiliary line. Jeonse prices in Sejong have risen by 13.88% since the beginning of this year, showing the largest increase nationwide.

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