Sejong City Real Estate Market, Fluctuates with Expectations of National Assembly Relocation

The real estate market in Sejong City has recently garnered attention due to discussions in the political arena about relocating the National Assembly. While homeowners are filled with anticipation from this movement, some experts have raised concerns that these expectations may end in another false hope.

According to the Ministry of Land, Infrastructure, and Transport's real transaction records, the 84㎡ apartment in 'Horyeoul Complex 3 Shin Dong-A Pamilie' in Boram-dong was recently traded for 700 million KRW.

This figure marks a decline of over 400 million KRW from its peak price of 1.15 billion KRW in 2021. Additionally, earlier this year, the same area was sold for 490 million KRW, nearly 700 million KRW down from the highest price.

Other apartments in Sejong City are experiencing similar conditions. The 84㎡ size in 'Naritjae Complex 3 Jeil Pungkyungchae Winners Sky' in Naseong-dong recently sold for 870 million KRW, a decrease of about 200 million KRW from its record high of 1.05 billion KRW last summer.

According to KB Real Estate's weekly apartment market trends, apartment prices in Sejong City have shown a consistent decline since November of last year.

However, with presidential candidates promising to change the administrative capital to Sejong City, the real estate market is experiencing renewed vigor.

Both the People Power Party and the Democratic Party of Korea announced their intentions to fully relocate the National Assembly and the President's office to Sejong, causing weekly apartment sales prices in the city to turn upward this month.

Despite this, a cautious atmosphere can be felt among Sejong City homeowners. In the past, discussions about relocating the National Assembly led to a sharp rise in the publicly assessed prices of apartments, followed by a significant decline.

For instance, 'Gajae Village Complex 4' in Jongchon-dong and 'Beomjigi Complex 10' in Aream-dong saw their assessed prices soar, but have now fallen to about half of those levels.

Ko Jong-wan, the head of the Korea Asset Management Institute, pointed out, "The recent rise in Sejong City's housing prices is due to uncertain expectations created by the presidential candidates' promises," adding, "This could be an excessive price bubble." He further mentioned, "Given that the real estate market could change drastically depending on the election results, aiming for short-term price profits is not advisable."

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