The government’s move to shift some ministries and agencies to Sejong City boosted apartment prices and jeonse deposits (a kind of down payment). Although the Moon Jae-in administration has introduced 22 sets of measures to cool the real estate market, the market remains sensitive to speculation. Last year, apartment prices in Sejong City rose 42 percent, the highest nationwide. In order to prevent the overheating of the housing market, the previous government designated areas where apartment prices had significantly increased as speculative, and put in place various restrictions on financing and selling apartments.Source:sejongrealtor.com
According to the government’s filing on assets of high-ranking officials, Park Jin-kyu, Vice Minister of Industry, Trade and Energy, sold his 111-square-meter Sejong apartment for 1.29 billion won, making about 900 million won before taxes. Hwang Suk-tae, Deputy Minister of the Living Environment Policy Office in the Ministry of the Environment, also sold his Sejong apartment for around 1.35 billion won.
First-Time Homebuyers in Sejong: Why You Need a Realtor
However, not all government workers are able to sell their Sejong apartments and profit from the rising prices, as some keep their family homes in Seoul for different reasons such as children’s schools or spouses’ work. For this reason, Cheong Wa Dae has strongly recommended that high-ranking government officials own only one home.
The new blueprint has fanned interest in the region, and some companies have pledged to make bulk investments in Sejong City. Real estate experts say that if the new blueprint is successful, the demand for luxury apartments in the region will increase further.