“The people coming now are all late. The properties that were put on the market for urgent sale last week have all been sold.” (A representative from A real estate agency in Dodam-dong, Sejong)
With expectations forming around the transfer of the presidential office in Yongsan and major public institutions ahead of the June early presidential election, housing prices in Sejong City are showing an upward trend. Real estate agencies in Sejong City, visited on the 22nd, unanimously noted that they had a busy week.
According to the weekly apartment price trend report by the Korea Real Estate Board (as of the 14th), Sejong City has shifted from a decline to an increase for the first time in 1 year and 5 months since November 2023. After recording a drop of 0.07% the previous week, it rose by 0.11 percentage points to 0.04%. Although housing prices had been in a long-term slump, the rising speculation about the transfer of the presidential office by leading candidates for the early presidential election has influenced this change.
Lee Jae-myung, a candidate in the Democratic Party of Korea presidential primary, noted on his Facebook page on the 17th, “I will complete Sejong as the center of the administrative capital and promptly promote the second transfer of public institutions,” and added that he would establish the Sejong National Assembly building and the presidential office in Sejong during his term and would push for their complete transfer to Sejong through social consensus. On the 13th, former Gyeongnam Governor Kim Kyeong-soo also declared his candidacy for the presidential election in Sejong.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the dedicated 84㎡ of 'Centum View' in Jeongin-dong was sold for 880 million won on the 1st, setting a new record. Last month, the Daedong Village 2nd complex in Naseong-dong (with a dedicated area of 84㎡) was transacted at 1.185 billion won, also setting a record.
The transaction volume also increased. According to apartment transaction records, Sejong City recorded 684 apartment transactions in March, nearly doubling from 372 transactions recorded the previous month. There are also responses indicating that inquiries from external investors and actual demand have increased, with rental demand shifting to purchase demand.
A representative from B real estate agency located near the Government Sejong Secretariat stated, “As soon as the impeachment was confirmed, quick movers flocked in and completed urgent sales transactions. There were days when we contracted 8 cases in a single day,” adding, “We received many inquiries from outside areas, especially in southern Seoul and Gyeonggi. In particular, the price for the 59㎡ dedicated area was so attractive that many people inquired for investment purposes.”
A representative from C real estate agency in Naseong-dong remarked, “Naseong-dong has transportation benefits like the subway opening, and Searom-dong and Dajeong-dong are rated highly for their school districts, but currently, urgent sales are disappearing and asking prices are rising, leading to a stalemate in transactions,” and added, “Homeowners have also significantly raised their asking prices. They do not intend to sell until assessing the situation after the election.”
A resident named Oh, 52, met at the C real estate agency said, “Sejong once rose and then fell continuously, so everyone has high expectations,” adding, “However, the actual interest remains a subject of debate among residents, creating an atmosphere of watchfulness.”
Experts have indicated that the transfer of public institutions will take a long time due to administrative procedures, and they pointed out that any increase is merely temporary and that there is a lack of additional upward potential. They expressed concerns that if the atmosphere overheats, there is a possibility of a sudden drop.
Previously, Sejong City had recorded a 44.93% increase in one year in 2020, coinciding with the administrative capital theory and the housing market boom. However, it subsequently recorded decreases of -0.78% in 2021, -1.26% in 2022, -4.15% in 2023, and -6.46% in 2024.
Park Won-gap, a senior expert at KB Real Estate, stated, “The apartment market in Sejong City has shown a volatile pattern, surging due to the transfer issues of administrative and legislative bodies, then dropping sharply. Therefore, caution is needed when the atmosphere is overheated.”
Song Seung-hyun, CEO of Urban and Economy, noted, “It rose due to the expectation sentiment, but the crucial issue is whether this can be maintained,” and added, “After the election, the feasibility of the transfer of administrative bodies will be considered, and prices will be formed. However, such benefits are not likely to occur in the short term, so there may be price adjustments in the future.”