Seoul Residents' 'Sejong Apartment' Remote Purchases Surge... 5 Times Monthly Average Last Year

205 Sejong Apartment Purchases by Seoul Residents in January
Five Times Last Year's Monthly Average of 40 Purchases
Sejong Tops House Price Increase, 'Wonjeong Investment' Rising
Jeonse Prices Soar Early This Year... Rising Trend Causes Concern

[Asia Economy Reporter Moon Jiwon] Last month, the number of apartments in Sejong City purchased by residents of Seoul was found to be five times the average monthly purchase volume of last year. While apartment transactions nationwide are declining following the government's successive real estate measures, it is interpreted that 'expedition investment' is still concentrated in Sejong, where expectations for rising housing prices remain high.

According to the statistics on apartment buyers' residences from the Korea Real Estate Board on the 22nd, the number of Sejong apartment purchases by Seoul residents last month totaled 205 cases. Considering that the average monthly purchase volume of Sejong apartments by Seoul residents last year was 40.5 cases, with a total purchase volume of 486 cases, last month's transactions increased to a level equivalent to 'panic buying.'

The total transaction volume of Sejong apartments recorded 2,110 cases in July last year, then decreased to 400-500 cases from September to November, before rising again to 1,120 cases in December. This year, the real estate market nationwide has slowed compared to the previous year, with transaction volume decreasing to 877 cases, but the purchase volume by Seoul residents increased significantly from 65 cases to 205 cases.

Despite the government continuously strengthening loan regulations for multi-homeowners and increasing tax burdens such as comprehensive real estate tax and capital gains tax, the increase in expedition investment appears to be due to the still high expectations for Sejong apartment price increases. In fact, Sejong City’s apartment prices have surged since July last year, when statements advocating to move the National Assembly, the Blue House, and government ministries to Sejong City, mainly by the ruling Democratic Party, spread.

(Photo by Yonhap News)

Looking at the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, the 149㎡ unit (exclusive area) in Hansol-dong, Cheotmaeul 3rd Complex in Sejong City was traded for 1.7 billion KRW on December 1 last year, setting a new record price exceeding the highest actual transaction price of 1.48 billion KRW in August of the same year by 220 million KRW. The 84.91㎡ unit in this complex surpassed the 1 billion KRW mark for the first time, trading at 1.025 billion KRW on the 30th of last month, and the current asking price has risen to 1.1 billion KRW.

The 84.99㎡ unit in Dajeong-dong, Gaonmaeul 4th Complex also traded at 1.12 billion KRW on November 21 last year and 1.047 billion KRW last month, significantly exceeding 1 billion KRW. The smaller 59.99㎡ unit recently sold for 650 million KRW, with the actual transaction price rising by about 50 million KRW in two months. A representative from A Real Estate Agency in Dajeong-dong said, "Due to the administrative capital relocation issue, asking prices are steadily rising," adding, "There is also a high demand for jeonse (long-term lease)."

The upward trend in Sejong apartment prices has somewhat slowed this year. According to the weekly apartment price trend from the Korea Real Estate Board, Sejong apartment prices recorded a 0.24% increase at the beginning of last month, but the rate of increase has been decreasing weekly, reaching only 0.16% as of the 15th compared to the previous week. A Korea Real Estate Board official explained, "Sejong is experiencing fatigue due to high asking prices, making transactions sluggish," and added, "The price increase is continuing mainly in mid-to-low price ranges."

However, as the jeonse prices in the area are rising sharply, there remains potential to stimulate purchase prices. Sejong apartment jeonse prices have risen 8.05% this year up to this week, showing the highest increase rate nationwide. Additionally, with the ongoing positive impact of the administrative capital relocation, it is analyzed that expedition investments by outsiders will continue. An industry official explained, "Sejong recorded an average subscription competition rate of 153.3 to 1 last year, indicating strong buying demand," and added, "Such demand is expected to continue for the time being."

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