This year, the apartment market in Sejong, which saw significant price increases following the promise of a transfer of the presidential office before the presidential election, is experiencing a period of stagnation. The number of apartments for sale has increased by more than 10% compared to the time of the election, and prices are reported to have decreased by several tens of millions of won.
According to the real estate big data platform Asil, the number of apartments for sale in Sejong was recorded at 7,312 as of the 1st. This is an increase of 673 units (10.1%) compared to the 6,639 units on the election day, June 3rd. The number of Sejong apartments for sale exceeded 8,100 units at the beginning of this year, but dropped to 6,000 units at the end of April when the presidential election promises were heavily publicized.
Apartment transaction prices, which briefly showed an upward trend before the election, have also decreased. Looking at recently closed transactions, an 84㎡ unit in the Do-Dam-dong Do-Raem 20 Complex Hangyang Suji Edu Park was sold for 540 million won (7th floor) on the 29th of last month. This represents a drop of 260 million won (32%) compared to the peak price, and a decrease of 60 million won compared to 600 million won (7th floor) on May 6th prior to the election.
The selling price of a 59㎡ unit in the Dajeong-dong Gaon 4 Complex (e-Pyeonhanesang Prugio) was about 400 million won at the end of last year, but surged to 550 million won (17th floor) before the election on May 26th. In the most recent transaction on the 21st of last month, it was recorded at 510 million won (18th floor).
According to the weekly price trend from the Korea Real Estate Board (REB), the rate of increase in apartment prices in Sejong City was at 0.48% compared to the previous week as of May 12th, indicating a significant rise. However, as of July 28th, this rate dwindled to 0.04%.
Ham Young-jun, head of the real estate research lab at Woori Bank, said, "The apartment sales market in Sejong City had been stagnant for several years, but it showed a sharp rise due to good news from the election promises before the election." He noted, "However, after the June 27th measures, the housing market in the metropolitan area has slowed down, and as news regarding the transfer of the presidential office and National Assembly has decreased, the atmosphere has returned to a wait-and-see stance."
Meanwhile, President Lee Jae-myung noted at a town hall meeting held in Daejeon on the 4th of last month that "The complete transfer of the presidential office to Sejong is a matter of constitutional amendment, so it is not easy," but added, "Since it is a long-standing agenda, I think it is right to fulfill the old promise as much as possible."
He added, "It is possible to build a second office and have some employees work in Seoul while others work in Daejeon, and it is also possible to build a congress building in Sejong, so I think we should accelerate those plans."