Unextinguished Spark of Capital Relocation... Sejong, 84㎡ Under 600 Million Won Properties Dried Up

7-9 Month Full Transaction Survey
8,539 Transactions in 83 Complexes of 84㎡

All but 6 Exceed 600 Million Won Highest Price
10 Billion Won Club Complexes Appear One After Another

[Asia Economy Reporter Lee Chun-hee] "There are no listings below 600 million KRW anymore." (Representative of A Real Estate Agency (licensed) in Jungchon-dong, Sejong)

Since the ruling party, the Democratic Party of Korea, triggered the 'administrative capital relocation theory,' the housing prices in Sejong have shown no signs of slowing down. In August, transactions for the most preferred 84㎡ (exclusive area) units have frequently exceeded 1 billion KRW, and listings below 600 million KRW have completely disappeared.

On the 18th, Asia Economy conducted a full survey of apartment transactions in Sejong City from July to September registered in the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, confirming that in most complexes, the actual transaction price for 84㎡ units exceeded 600 million KRW.

Since July, there have been a total of 8,539 transactions of 84㎡ apartments across 83 complexes in Sejong City (excluding eup and myeon areas). Except for only six complexes, all others recorded actual transaction prices above 600 million KRW for 84㎡ units. The '1 billion KRW club' complexes are also increasing. In July, the 84㎡ unit in Saetteum Village Complex 11 was traded at 1.1 billion KRW, marking the first time this area surpassed 1 billion KRW, followed by a transaction at 1.05 billion KRW on the 4th of last month at The Sharp Lake Park in Eojin-dong.

Although complexes such as Beomjigi Village Complex 3 in Areum-dong, Gajae Village Complex 3 in Jongchon-dong, and Garak Village Complexes 3, 8, 9, and 22 in Goun-dong have not yet exceeded 600 million KRW in actual transaction prices, local real estate agents say this reflects old prices. The representative of A Real Estate Agency in Jungchon-dong stated, "Currently, no homeowner is asking below 650 million KRW, but inquiries from buyers continue steadily."

Nearby real estate offices in other complexes also explained, "Given the soaring transaction prices in adjacent complexes, it would be difficult to list below 600 million KRW." The 84㎡ unit in Garak Village Complex 21 in Goun-dong set a new record by trading at 600 million KRW on the 9th of last month. Considering it was traded in the mid-300 million KRW range in January, the price nearly doubled in eight months.

Sejong Saerom-dong Saetteum Village 11 Complex 'The Sharp Hillstate' exterior view. In July, an 84㎡ unit was traded for 1.1 billion KRW, marking the first time in Sejong to join the '84㎡ 1 Billion KRW Club'. (Photo by Lee Chunhee)

According to the weekly apartment sales price index by the Korea Real Estate Board, housing prices in Sejong City have surged by a staggering 36.5% this year. This is not only the highest increase nationwide but also distinctly different from other cities and provinces, which mostly recorded single-digit growth rates except for Daejeon (12.2%).

Especially after Kim Tae-nyeon, the Democratic Party floor leader, began actively advocating for the 'administrative capital relocation' at the end of July, the upward trend became steeper. The increase rate rose from 0.97% compared to the previous week on the 20th to 2.95% on the 27th, nearly reaching 3%. Although the recent survey on the 14th showed a slight slowdown to 0.44%, this is still a remarkable rise compared to Seoul's 0.01% increase.

Industry experts believe this trend may continue for some time. Since the administrative capital relocation is still at the discussion stage, prices are likely to rise in a stepwise manner whenever there is a turning point. Additionally, rising jeonse (long-term deposit lease) prices are also putting pressure on sales prices. As of the 14th, the weekly increase rate of apartment jeonse prices in Sejong City was the highest nationwide at 2.15%, with a cumulative increase of 30.44% this year.

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