Sejong Apartment Sale Price Index Rises 0.49% from Previous Week
Gangnam 0.19%, Mapo 0.17%, Seongdong 0.16% in Seoul
The rate of increase in housing prices in Sejong City has reached its highest level in four years and eight months. This is a result of heightened expectations regarding the relocation of the presidential office and other government institutions to Sejong.
According to the Korea Real Estate Board's weekly apartment price trends nationwide for the fourth week of April (as of April 28), apartment sale prices in Sejong City rose by 0.49% compared to the previous week.
This is double the increase from the previous week (up 0.23%), marking the highest growth rate since the fifth week of August 2020 (up 0.51%).
This trend is analyzed as being driven by growing expectations following campaign pledges to relocate the presidential office and the National Assembly to Sejong ahead of the presidential election.
In fact, apartment transactions in Sejong City have also been on the rise recently. According to real estate information provider Asil, the number of apartment sales in Sejong City this year has reached 2,268, surpassing half of last year’s total annual transactions (4,476).
The Korea Real Estate Board explained, "Housing prices are rising mainly in popular complexes in Dajeong, Saerom, and Goun-dong, leading to a broader increase across Sejong."
Apartment Sale Price Index Change Rate Nationwide for the 4th Week of April. Provided by Korea Real Estate Board
As of the fourth week of April, apartment sale prices in Seoul rose by 0.09%, marking the thirteenth consecutive week of increases. The rate of increase also expanded compared to the previous week (0.08%). Districts such as Gangnam (0.13%→0.19%), Mapo (0.14%→0.17%), Yongsan (0.13%→0.15%), and Yangcheon (0.12%→0.14%) saw larger increases than the previous week. Seocho and Songpa (0.18%), Seongdong (0.16%), and Gangdong (0.11%) also continued their upward trends.
The Korea Real Estate Board stated, "Asking prices for major preferred complexes, including those slated for reconstruction, are rising and transactions at higher prices are being concluded. However, in some areas, buyers are taking a wait-and-see approach, resulting in continued overall growth in Seoul."
In Gyeonggi Province, sale prices fell by 0.02%, continuing the downward trend, and Incheon also turned to a decline, dropping by 0.01%. However, Gwacheon (0.28%) and Bundang in Seongnam (0.11%) recorded increases. Due to the declines in Incheon and Gyeonggi, the overall growth rate for the Seoul metropolitan area decreased by 0.01 percentage points from the previous week, recording 0.1%.
Nationwide, apartment sale prices fell by 0.02%, with the decline widening compared to the previous week (-0.01%). The rate of decline also expanded in non-metropolitan areas (-0.04%→-0.05%), the five major metropolitan cities (-0.06%→-0.07%), and the eight provinces (-0.03%→-0.05%).
Change rate of nationwide apartment jeonse price index in the 4th week of April. Provided by Korea Real Estate Board
The nationwide apartment jeonse price index remained flat (0.00%) for the fourth consecutive week since the first week of April. Seoul (0.02%) and Gyeonggi (0.01%) maintained the same rate of increase as the previous week, while Incheon (0.01%→-0.02%) turned to a decline.
In Seoul, while trends varied by region, rental demand continued to be strong in areas with good residential environments, such as near subway stations and large apartment complexes, resulting in more contracts at higher prices. The rate of decline in non-metropolitan areas narrowed (-0.02%→-0.01%). However, in Sejong (0.03%→0.12%), jeonse prices also saw a significant increase.
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