The government’s move to reshape the blueprint for Sejong City on Monday has sparked a sudden increase in inquiries about purchasing luxury apartments there. Real estate agents say the new blueprint could bring more people into the area and boost apartment prices, which dropped last year. Resource: https://sejongrealtor.com/
The original plan was to relocate ministries, agencies and the National Assembly to Sejong to help balance growth in Seoul’s overcrowded metropolitan area and stabilize skyrocketing housing prices. But the relocation project has faced numerous challenges. One was the special housing supply program to encourage government workers to move to the region, which guaranteed them hundreds of millions of won in profit when they purchased an apartment. But since many of the first movers moved to Sejong years ago, young employees who joined their ministries more recently cannot take advantage of the special program.
Navigating the Sejong Real Estate Market: A Realtor’s Guide
As a result, construction companies were left with dozens of unsold apartments in Sejong City and nearby towns. Those properties became the subject of a property bubble in which government officials paid top dollar for luxury homes and investors saw large returns.
As the bubble burst, the government is reexamining its policies on the sale of real estate. It has already lifted restrictions on purchases outside greater Seoul and Sejong, which had been designated as speculative districts. That means buyers can borrow more money for apartments and face fewer limitations when selling them. Despite the loosening of restrictions, some experts warn that it’s too early to call the market a recovery.