[Report] Yongsan Anxious Over Possible House Price Drop... Expectation of Rise Near Cheongwadae Leads to Listing Freeze

Conflicting Reactions Near Ministry of National Defense and Cheongwadae to News of Yoon's Office Relocation
Near Ministry of National Defense, Some Put Up Properties Amid Possible Price Drop
In Cheongwadae Area, Selling Intentions Weaken Amid Expectations of Price Rise

In front of the Ministry of National Defense building in Hangangno-dong, Yongsan-gu, Seoul, visited on the 17th. Near the Ministry of National Defense building visible in the distance, there are old, low-rise buildings./Photo by Hwang Seoyul

[Asia Economy Reporter Hwang Seoyul] "Homeowners are very anxious. Since yesterday and today, inquiries like 'Are house prices falling? Should I sell?' have been flooding in through KakaoTalk and phone calls." (Representative of A Real Estate Agency, Hangangno-dong, Yongsan-gu, Seoul)

"There hasn't been a single purchase inquiry, but some sellers are already saying they won't sell. Recently, there was someone who wanted to buy a property, but the homeowner raised the price, so the deal fell through." (Official from B Real Estate Agency, Cheongunhyoja-dong, Jongno-gu, Seoul)

As news emerged that President-elect Yoon Seok-yeol is considering relocating the presidential office to the Ministry of National Defense building in Yongsan, Seoul, the areas around Hangangno-dong in Yongsan-gu and Cheongunhyoja-dong (Seochon) and Samcheong-dong in Jongno-gu, which are adjacent to the Blue House, are showing contrasting reactions. One side anticipates a drop in housing prices, while the other expects an increase.

On the afternoon of the 17th, real estate officials around the Ministry of National Defense building in Yongsan reported that homeowners are worried that the office relocation might lead to a price decline. The representative of A Real Estate said, "There were no listings at all, but since the announcement, two have appeared," adding, "They are even priced below market value."

In particular, the area around 158 Hangangno 1-ga, Yongsan-gu, near the Ministry of National Defense, was planned for redevelopment through the Hangangno Station Urban Environment Improvement Project, with plans for five buildings including 497 apartments (38 floors above ground and 5 floors underground) and 388 officetels. This has caused greater concern because height restrictions for presidential security could limit the floor area ratio in the surrounding area. An official from C Real Estate said, "If the floor area ratio is restricted, profitability inevitably decreases, leading to strong opposition from nearby association members." The representative of A Real Estate also pointed out, "Since President-elect Yoon was elected on real estate public sentiment, we expected redevelopment to accelerate, but instead, homeowners' worries have only increased."

On the same afternoon, in the Samcheong-dong area of Jongno-gu, Seoul, local residents expressed their anticipation about the news of the office relocation.
Photo by Hwang Seoyul

On the other hand, real estate agents around the Blue House showed reactions opposite to those near the Ministry of National Defense. Here, homeowners expecting a rise in housing prices due to deregulation from the office relocation are even withdrawing their listings. A nearby real estate official, Mr. D, said, "There were buyers interested in properties that had been on the market before, and contracts were underway, but after the announcement, the homeowners suddenly raised prices, causing the deals to fall through," adding, "It’s not just a price increase; it means they don’t want to sell at all." He also added, "Homeowners who were considering selling have ultimately decided not to sell and are withdrawing their sale intentions."

The reactions of residents in the two areas were also contrasting. A resident living near the Ministry of National Defense in Yongsan said, "Thinking about the increase in rallies and protests already gives me a headache," expressing opposition to the relocation. In contrast, a resident of Samcheong-dong said, "If the Blue House is opened to the public, the local commercial district is expected to become more active," expressing hope, "Traffic congestion and helicopter noise caused by protests were inconvenient, but it seems like it will improve a lot."

There were also voices negatively evaluating the office relocation itself. Kim (23, female), whom we met in Samcheong-dong, said, "Although the purpose is communication, the meaning of moving the office at the cost of enormous taxes is not clear."

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