Home prices soar in Sejong as talks of presidential office relocation resurface
Government Complex Sejong / gettyimagesbank
The impeachment of former President Yoon Suk Yeol and the upcoming June 3 presidential election have triggered a surprising turn of events: home prices are soaring in Sejong, Korea's administrative capital, industry officials said Monday.
Political parties are fueling expectations for the relocation of the presidential office to the city, arguing that the current office in central Seoul's Yongsan District is unsuitable as a permanent location. While several locations are under consideration — including Cheong Wa Dae and Gwanghwamun in Seoul — Sejong remains the only option outside the capital being discussed.
According to real estate data tracker Asil, apartment sales in Sejong surged to 735 in March, nearly double February's 372. Reflecting enthusiasm among homeowners, the number of apartments listed for sale dropped to 6,818 listings as of Monday, a decrease of 12.8 percent compared to a month earlier.
Apartment prices are also going up. On March 20, a 98-square-meter unit on the 17th floor near Government Complex Sejong sold for 910 million won ($637,299), marking a 280 million won increase from a similar transaction in February.
Political developments are driving the price surge. Speculation over the potential relocation of the presidential office is growing, with the Democratic Party of Korea reviewing a proposal to complete Sejong’s transition into the nation's official administrative capital.
While Sejong currently hosts multiple government ministries, the city’s administrative role has long been viewed as incomplete without the presence of the presidential office and the National Assembly.
Support from several presidential candidates, including Reform Party leader Lee Jun-seok and former People Power Party leader Han Dong-hoon, is adding momentum to the idea.
But market watchers are urging caution, stressing that the relocation is far from certain. They cite major hurdles, including strong public perception of Seoul as the only capital, and logistical challenges associated with moving key institutions.
The skepticism is not without precedent. This is not the first time Sejong has experienced a property boom tied to political events. In 2020, housing prices in the city soared 42.3 percent amid a housing market rally and political interest in relocating the National Assembly to Sejong.
But after discussions lost momentum in 2021, prices began to decline. By 2024, Sejong recorded the weakest home price growth nationwide, with some units selling for nearly half their peak values.
The city’s lack of comprehensive living infrastructure and its limited employment opportunities outside the public sector have also weighed down property values.
Kim In-man, head of the Kim In-man Real Estate and Economics Institute, warned that relocation may not have the positive effects many are hoping for.
"It could cause more inconvenience than benefit due to security issues such as height restrictions in areas surrounding the presidential office, and may ultimately provide little real advantage," he said.
"For those with sufficient funds and genuine housing needs, purchasing a home in Sejong can be promising. However, there is no need to rush based on speculative hopes tied to the relocation."