As the early presidential election and the establishment of the new government have been confirmed, the listings of apartments in Sejong City are disappearing. It is analyzed that homeowners are withdrawing their listings due to expectations that housing prices in Sejong City will rise further, following the transfer of the presidential office in Yongsan and the relocation of major public institutions.
According to the Ministry of Land, Infrastructure and Transport and real estate big data platform Asil on the 17th, from the 4th, when the presidential impeachment was approved, to the 16th, the real estate listings (sales and leases) in Sejong City decreased by over 9%, showing the largest drop in the nation. The number of listings fell from 10,181 to 9,249 (-9.2%). While listings also decreased in places such as Pocheon City (-7.3%), Yeoncheon County (-6.0%), and Gangdong District in Seoul (-5.2%), Sejong City was the only area where listings vanished by nearly 10%.
Looking at the apartment listings in Sejong City by legal districts and townships, Yeondong-myeon in Sejong City saw the largest decrease at 18.8%. Listings also fell by over 10% in places such as Dajeong-dong (-17.5%), Jongchon-dong (16.5%), Dodam-dong (15.7%), and Saerom-dong (11.1%) within just over ten days.
Sejong City was an active trading area last month in March. According to the prop-tech corporation Zigbang, the trading volume in Sejong City for March was 687 transactions, an increase of 2.6 times compared to January (266 transactions). It was the area with the largest increase in trading volume nationwide. The total transaction amount also rose to 351 billion won, an increase of 2.8 times compared to January.
On the 3rd of last month, 'Naritae Village Complex 2 in Nasong-dong' (84㎡) was traded for 1.185 billion won, setting a record high. On March 9, 'Dorema Village Complex 17' (99㎡, 4th floor) in Dodam-dong was also traded for 544 million won, again breaking the record.
The disappearance of listings in Sejong City is attributed to expectations that the presidential office will be moved to Sejong City ahead of the new government's launch, leading to the anticipation that housing prices will rise further, according to analyses from the real estate industry. Currently, there are claims centered around the political sphere that the presidential office in Yongsan should be transferred to Sejong. The secondary presidential office and the Sejong National Assembly (branch) are being established. Separately, the Democratic Party is preparing to propose a 'special law for the construction of the new administrative capital,' intending to fully transfer the administrative capital, including the presidential office and the main building of the National Assembly, to Sejong.
In the real estate market, assessments suggest that the Sejong City real estate market is experiencing a phenomenon similar to political theme stocks in the stock market. As the election period approaches, expectations are emerging that government departments, the presidential office, and public institutions will transfer to Sejong City, causing housing prices to fluctuate.
Cho Young-kwang, a researcher at Daewoo E&C, noted that "Interest in Sejong City's real estate during election season is a phenomenon similar to temporarily trending political theme stocks," adding that it is "like a mirage that disappears shortly after." Cho further mentioned, "While Sejong City may not yet be a fully developed new residential district, the majority of the apartments are over ten years old, lacking the advantages of new constructions."
Park Won-gap, a senior real estate expert at KB Kookmin Bank, said, "Sejong is a place where the real estate market fluctuates significantly according to political issues," but added, "However, the local real estate market is gradually recovering, and there is also the possibility of some public institutions relocating to the provinces, which means that housing prices in Sejong City and other major local cities may rise a bit more in the future."