As Sejong Apartment Prices Soar, Daejeon Pre-sale Rights Also Surge... Premiums Average Over 500 Million KRW Increase

[Asia Economy Reporter Donghyun Choi] Recently, due to the administrative capital relocation theory stirred up in the political sphere, development prospects, and population growth, apartment prices in Sejong City have surged sharply in a short period, causing the real estate market in Daejeon City to also show signs of movement.

On the 14th, Economic Man Lab, a real estate information provider, reviewed the Ministry of Land, Infrastructure and Transport's actual transaction price statistics system and various apartment resident recruitment announcements, finding that as of September this year, the price of pre-sale rights for three apartment complexes in Daejeon increased by 515.16 million KRW (94.7%) compared to the original sale price.

The place where the pre-sale right price rose the most compared to the sale price was identified as ‘Daejeon I-Park City Complex 2’ in Bogyong-dong, Yuseong-gu, Daejeon (scheduled for occupancy in November 2021). The 122㎡ unit (exclusive area) in this complex was priced at 710 million KRW in March last year.

Subsequently, as apartment prices in Daejeon soared, the pre-sale right for the same size unit was traded at 1.01437 billion KRW (8th floor) in January this year, and on the 16th of last month, the pre-sale right was resold at 1.47328 billion KRW (16th floor). This represents an increase of 763.28 million KRW (107.5%) compared to the original sale price.

For the 84㎡ unit of ‘Daejeon Gapcheon 3 Block Triple City’ located in Doan-dong, Seo-gu, Daejeon (scheduled for occupancy in November 2021), the sale price was 390 million KRW in July 2018. The pre-sale right for this apartment was traded at 636.21 million KRW (9th floor) in January this year, and on the 1st of last month, it was resold at 772.81 million KRW (12th floor), resulting in an increase of 382.81 million KRW (98.2%) compared to the original sale price.

The 84㎡ unit of ‘Daejeon I-Park City Complex 1’ in Bogyong-dong, Yuseong-gu, Daejeon (scheduled for occupancy in November 2021) was sold for 510 million KRW in March last year, but in January this year, it was contracted at 708 million KRW (20th floor), and on the 2nd of last month, it was contracted at 909.4 million KRW (23rd floor), with a premium reaching about 400 million KRW.

As the price of pre-sale rights for apartments in Daejeon has soared like this, the volume of pre-sale right resale transactions has also increased. According to the Korea Real Estate Agency, the volume of pre-sale right resale transactions in Daejeon from January to August this year was 2,822 cases, the highest for the January to August period since statistics began in 2016.

Although Daejeon’s four autonomous districts?Dong, Jung, Seo, and Yuseong-gu?except Daedeok-gu, have been designated as speculative overheated districts under the June 17 real estate measures, the price of pre-sale right resales remains strong, and the city is also benefiting from the Sejong City relocation theory.

Oh Daeyeol, head of the research team at Economic Man Lab, said, “In Daejeon, the subscription competition rate for apartments sold after the designation as a speculative overheated district remains high. Recently, interest in new apartments has been strong, and combined with the influence of rising apartment prices in Sejong, the price of pre-sale rights in Daejeon is rising even more steeply.”

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