Presidential Office Relocation to Sejong Quietly Stalls
Apartment Transactions Drop by 87 Percent
Only 185 Transactions from July 1 to 29
Sharp Decline Compared to 1,451 Deals in April During the Election
"Volatility Rises Like Political Theme Stocks, Swayed by Market Sentiment"
The apartment market in Sejong, which emerged as a beneficiary of policy promises during the last presidential election, has recently faced a sudden downturn. During the election, positive factors such as the proposed relocation of the presidential office led to increased transactions and rising prices. However, as of two months after the election, both transaction volume and prices have declined. As Sejong's real estate market has shown significant fluctuations depending on political issues, there is growing support for the view that investors should be cautious about making hasty investments.
According to the Ministry of Land, Infrastructure and Transport's Actual Transaction Price Disclosure System on the 31st, there were 185 apartment sales transactions in Sejong from July 1 to 29. This represents a sharp decrease of 87.3% compared to the 1,451 transactions recorded in April during the presidential election period.
At the beginning of the year, the Sejong apartment market saw a surge in transactions as the early presidential election was triggered by the 12·3 Martial Law Declaration and campaign pledges such as the relocation of the presidential office and the National Assembly were announced. In particular, attention focused on Sejong when, in March, President Lee Jaemyung, then leader of the Democratic Party, instructed his party to consider relocating the presidential office to Sejong. During his candidacy, President Lee pledged to build the National Assembly Sejong Building and the Presidential Sejong Office during his term, while Kim Moonsu, the People Power Party candidate at the time, also promised the complete relocation of the National Assembly and the establishment of a second presidential office in Sejong. As a result, transaction volume in Sejong increased significantly. In January, there were only 305 apartment transactions, but this number rose to 807 in March and surpassed 1,450 in April.
However, after the election, attention shifted to Busan. When the Ministry of Oceans and Fisheries selected a building in Dong-gu, Busan, as a temporary office and announced plans to relocate shipping companies and establish a maritime court and the Southeast Investment Bank, interest in real estate in the area grew. On July 4, President Lee stated at a town hall meeting in Daejeon, "Completely relocating the presidential office to Sejong is a constitutional issue, so it is not an easy matter."
As apartment transactions in Sejong have decreased, prices have also fallen. For example, a 59-square-meter unit in Garak Village Complex 6 in Gowon-dong, which was sold for 410 million won in April, dropped to 392 million won this month. Gowon-dong, known as the "Daechi" of Sejong for its concentration of apartment complexes and private academies, saw the highest number of transactions during the price surge in April.
Experts predict that, thanks to Sejong's favorable residential environment and educational infrastructure, housing prices will rise in the long term. However, they advise against making hasty investments based on political issues. In 2020, during the 21st general election, apartment prices in Sejong rose by 44.93% in one year as the Democratic Party promoted the construction of the National Assembly Sejong Building and the Presidential Office. However, prices began to fall the following year, resulting in four consecutive years of decline up to last year.
Park Wongap, Senior Specialist at KB Kookmin Bank, said, "The Sejong real estate market is highly volatile depending on the political climate, much like a political theme stock," adding, "It is one of the regions with a strong investment character." He continued, "Because it has excellent educational and residential infrastructure, it is a region with long-term premium potential, so a moderate recovery is expected." He also advised, "If transaction volume or prices move sharply as they did during the last presidential election, it is better to avoid making hasty decisions."
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