Housing 'Frozen' Land 'Blazing' What Is Happening in Daejeon?

Shift of Investment Sentiment to Less Regulated Land
Housing Sales Consumer Sentiment Plummets by 24.2p

The land transaction market in Daejeon, where housing purchase demand has contracted the most nationwide, is drawing attention for its rather vibrant activity. While housing sales sentiment showed the largest decline across the country, the land market recorded the highest increase. This is analyzed to be due to the stagnation of house prices caused by interest rate hikes and loan regulations, while outsiders are flocking to land investments, which have fewer restrictions, amid expectations of future development benefits.

According to the results of the 'Real Estate Market Consumer Sentiment Survey' by the Korea Research Institute for Human Settlements on the 16th, last month, Daejeon's housing sales market consumer sentiment index was 111.0, a sharp drop of 24.2 points compared to October (135.2). It was the second lowest after Sejong City (94.9), and the largest decline nationwide. The consumer sentiment index is based on surveys conducted with frontline real estate agents and general households; a value above 100 means more respondents expect price increases and transaction growth, while below 100 indicates the opposite.

In contrast, the land market showed the opposite trend. Last month, the consumer sentiment index for the land market in Daejeon was 113.5, 8 points higher than the previous month. This was the highest nationwide, 7.5 points above second-ranked Seoul (106.0).

The market interprets this as investment shifting from houses to land in the region. As the government's stringent regulations and rising pre-sale prices have raised the entry barriers for apartments, demand is moving to the land market, which is relatively less regulated.

Currently, there are over 80 sites in Daejeon where redevelopment, reconstruction, or new town development is underway or planned. This is due to Daejeon City's continuous efforts to revitalize the old downtown by promoting residential complex development and large-scale park construction.

Outsiders' land investments are also increasing. According to the Korea Real Estate Board's pure land transaction status in Daejeon, the number of buyers in October was 659, down 64 from the previous month, but the number of outsider buyers increased by 82, from 150 to 232 during the same period.

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