Consumer sentiment in Sejong's housing sales market rose sharply for a second straight month, lifted by expectations of higher home prices as the government firms up plans for a second round of central government agency relocations. Sentiment in the city's jeonse (a lump-sum deposit lease) market overtook Seoul to become the highest in the country.
Sejong's housing sales sentiment index stood at 125.3 in September, up 12.4 points from the previous month, according to a September survey of real estate consumer sentiment released by the Korea Research Institute for Human Settlements (KRIHS) on the 15th. That was the second-highest reading nationwide after Seoul at 130.8. The index had already risen 11.4 points to 112.9 in August from 101.5 in July, and continued climbing in September. The 23.8-point surge over two months moved the city out of neutral territory and into expansion, defined as a reading of 115 or higher.
Expectations were even stronger in the jeonse market. Sejong's housing jeonse sentiment index came in at 125.0, up 5.8 points in a month. That was the highest in the country, 2.2 points above second-place Seoul at 122.8.
Analysts attribute the improvement in Sejong's property sentiment to plans for additional relocations of central government agencies. The government announced the direction of its second round of relocations on Sept. 3, then released a detailed plan on the 13th of this month to move 44 agencies and 9,929 public officials to Sejong by 2031. With 2,995 officials from 27 agencies scheduled to relocate next year alone, expectations for rising housing demand are projected to grow further.
Transactions are also increasing. Apartment sales in Sejong totaled 509 in September, up 56.6% from 325 in August, according to real estate big data provider Asil. Prices are showing signs of a rebound as well. Apartment sale prices in Sejong rose 0.02% in the second week of this month, as of the 12th, from the previous week, turning higher after a one-week decline, according to the Korea Real Estate Board. Jeonse prices climbed 0.24%, widening their gain.
Housing sales sentiment in Seoul, by contrast, weakened for a second consecutive month. The city's housing sales sentiment index fell 1.7 points to 130.8 from 132.5 a month earlier. It has declined for two straight months since reaching 139.9 in July but remains in expansion territory. Seoul's jeonse sentiment index rose 2.1 points from the previous month to 122.8.
Nationwide, the housing sales sentiment index was 117.3, up 0.6 point in a month. The index for the Seoul metropolitan area fell 0.7 point from the previous month to 124.9, while the reading for areas outside the capital region rose 1.9 points to 108.4.