Over 100 Million Increase in Two Days... Sejong Housing Prices Surge Due to Administrative Capital Move

Apartment Prices Rise 2.95% Over the Week
More Than Triple Last Week's Increase
Expectations for Additional Government Ministry Relocations
Asking and Actual Transaction Prices Fluctuate

[Asia Economy Reporter Onyu Lim] "It sold for around 500 million won on the 25th, and on the 27th it went out for around 600 million won. A two-story unit with a pilotis structure is even listed at around 700 million won." (Representative of real estate agency A in Saerom-dong, Sejong)

This is the recent price trend of The Sharp Hillstate 59㎡ (exclusive area) in Saeteum Village Complex 10, Saerom-dong, Sejong City.

Discussions about relocating the administrative capital are driving Sejong housing prices sky-high. With a surge in buying demand, the average weekly price increase rate has reached as high as 3%. The controversy over relocating the administrative capital, which began with stabilizing housing prices in the metropolitan area, is instead turning the Sejong area into a speculative market.

According to the Korea Real Estate Board's weekly apartment trend report on the 31st, apartment prices in Sejong in the fourth week of this month rose by 2.95% compared to the previous week. This figure is more than three times the previous week's increase rate of 0.97%, marking the highest weekly increase rate since statistics began in 2012. A Korea Real Estate Board official explained, "The expectation of additional government ministries relocating has increased buying inquiries, expanding the price rise," adding, "Prices rose in most areas including Happy City, Jochiwon-eup, and Geumnam-myeon."

Sejong is subject to the strongest regulations as a speculative overheating district, similar to Seoul. Despite this, the recent surge in housing prices is due to the ruling party's controversy over relocating the administrative capital. The ruling Democratic Party insists that the capital should be moved to Sejong even if it requires constitutional amendment.

With buying inquiries concentrated on expectations of the administrative capital relocation, both asking prices and actual transaction prices have soared significantly. On the 29th, two days ago, the actual transaction price of a 75㎡ apartment in Gaon Village Complex 3, Dajeong-dong, surpassed 600 million won for the first time. This apartment, which traded for 630 million won, was only 425 million won as of January this year. It rose by more than 200 million won in six months. On the same day, a 59㎡ unit in Hanshin The Hue Penta Hills, Saesaem Village Complex 6, Sodam-dong, was traded for 500 million won. The highest transaction price for this house was 390 million won in December last year.

In Jochiwon-eup, the only non-regulated area in Sejong, even 20-year-old Jugong apartments are setting new record prices. On the 29th, a 59㎡ Jugong apartment in Sinheung-ri, Jochiwon-eup, was traded for 170 million won, 33 million won higher than the highest price last month (137 million won).

A representative of real estate agency B in Dajeong-dong said, "With expectations that housing prices will rise, half of the listings have raised their asking prices while the other half have been withdrawn," adding, "A characteristic of Sejong real estate is a high owner-occupancy rate, but recently there has been an increase in buyers from nearby areas such as Cheongju and Cheonan."

The housing price rise is expected to accelerate further as the controversy over relocating the administrative capital expands. Some speculate that this rapid price surge may backfire on the government and ruling party's discussions about the relocation. A resident of Sejong, Mr. A, said, "The relocation has not even been confirmed, but side effects such as skyrocketing housing prices are occurring, so ultimately only genuine buyers will suffer."

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