As multi-home owners flood the market, some Sejong apartment prices have been cut in half

The apartment market in Sejong Special Self-Governing City, which once led home-price gains nationwide on hopes of a relocation of the administrative capital, has reversed course in just one year. As multi-home owners sell off properties, transaction prices are falling and the number of listings is rising at the fastest pace in the country.
■ Down 500 million to 700 million won from the peak
According to the Korea Real Estate Board (KREB) on the 14th, Sejong apartment sale prices fell 0.55% from the start of the year through the 8th. That compares with a 1.19% gain in the same period last year, a difference of 1.74 percentage points. Over the same period, Seoul widened its increase from 2.29% to 4.22%, while the Seoul metropolitan area rose from 0.39% to 2.59%. Nationwide, prices also shifted from a 0.31% decline to a 1.35% increase.
The rise in listings is also striking. Data from Asil showed that as of that day, Sejong had 9,943 apartment sale listings, up 44.8% from a year earlier. That was the highest growth rate among the country’s 17 cities and provinces.
By contrast, jeonse listings fell 39.8% from 930 to 560, while monthly rent listings dropped 57.9% from 1,159 to 489. Sale listings surged, but rental listings declined sharply, showing a clear divergence.
An industry source said, "Expectations remain for positive developments such as the National Assembly Sejong Complex and the Sejong presidential office, but listings are also coming onto the market as owners weigh tighter rules on non-resident single-home ownership and heavier tax burdens." The source added, "It will be hard to expect the kind of market where all of Sejong rises together as it did in the past."
■ Regional price gaps widen between record highs and declines
Sejong’s real estate market is showing sharp differences by neighborhood and by complex. Some preferred complexes are still posting record-high deals, but many others have yet to recover their previous peaks.
A 96-square-meter unit at Surubae 1 Complex Castle & Famillie Diart in Bangok-dong, Sejong City, sold for 1.5 billion won in 2021, but recently changed hands for 800 million won. A 99-square-meter unit at Haedeul 6 Complex e-Pyeonhansesang Sejong River Park in Daepyeong-dong, which sold for 1.4 billion won in 2020, has recently traded in the 700 million to 900 million won range. In addition, some complexes in areas such as Saetteum, Horyeoul, Gajae and Haedeul Village have closed deals at prices several hundred million won below their peak.
On the other hand, some favored complexes, including Naritjae Village Apartment Complex 1 in Naseong-dong and Sanul Village Complex 6 in Sanul-dong, have recently seen record-high transactions.
A broker near Haedeul 6 Complex said, "Sejong is a market with wide regional disparities." The broker added, "Investment demand that once expected a rapid surge over a short period has fallen sharply, and many listings from two-home owners are also on the market." The broker also said, "Unless it is a distressed sale, owners often keep asking prices high."
en1302@fnnews.com Jang In-seo Reporter