700 million land Sejong was 4.3 billion in 5 years… “The neighborhood of Lee Hae-chan’s house also surged”

Input 2021.02.01 14:00

5th auction at the Daejeon District Court on the 20th of last month. A whopping 102 bidders flocked to the 1653㎡ auction in Habong-ri, Janggun-myeon, Sejong City. The successful bid price was 591.89 million won, 261% of the appraised price (226.46 million won). The surrounding area is a rural village made up of land and forests, and it is about 7.5km away from the Government Complex Sejong in a straight line, so it takes 25 minutes by car. Investors’ interest also attracted attention to these lands far from the city center.

On the 25th of last month, 30 bidders flocked to the auction of a 223㎡ site in Yeongdang-ri, Jeoui-myeon, Sejong City. The successful bid price was 93.8 million won, 143% of the appraised price (65.75 million won). This area is also a farmland such as Jeon and Dap, which is about 18 km in a straight line to the Government Complex Sejong and about 35 minutes by car. Sejong’s land market is gaining popularity in real estate auctions as well as housing.

According to the support auction on the 1st, the successful bid price for land auctions in Sejong City (the ratio of the successful bid price to the appraised price) is increasing every year. The successful bid price rate, which was 66.2% in 2015, reached 74.9% in 2016, exceeding the 70% level, and then rose to 85.4% last year. This year, until the 29th of last month, the successful bid price rate increased to 91.7%. The average number of bidding before 2.3 in 2015 rose to 22.1 this year.

This is a result of the increase in apartment prices due to the transfer of administrative capital and the demand for investment in land. According to the Korea Real Estate Agency, the nation’s house prices rose 5.36% last year, the highest rate in nine years, while Sejong City soared 37.05%.

The same goes for land. According to the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Agency, Sejong City was the place where land prices rose the most among local governments nationwide last year. Land prices in Sejong City rose 10.62% in 2020, more than twice as high as Seoul (4.80%), the second place.

Looking at individual trading cases, the rate of increase is often recorded higher. San 106-2, Wolhari, Yeonseo-myeon, was sold at 740 million won in 2015, but it was sold at 4.34 billion won last month. It is nearly six times in five years. 116 Bongsan-ri, Jochiwon-eup, was traded for 210 million won in January last year, but in November of last year, a hand change occurred for 400 million won. In just 10 months, the trading price has soared 94%.

The land prices in Migok-ri, Jeondong-myeon, owned by former leader of the Democratic Party Lee Hae-chan, are also on the rise. According to the National Assembly Gazette, Lee has a field (875㎡) and land (653㎡) in Migok-ri in the name of his spouse. The site has a detached house (172.53㎡) and a warehouse (18㎡). During the 19th general election in 2012, former representative Lee, who ran as a member of the Sejong City District Assembly, reported that in December of that year, he had purchased the above land for 138.6 million won. In March of last year, it reported about 350 million won in real estate prices.

The current market price is evaluated to have risen considerably. For example, 48 Migok-ri, a short distance from the former CEO’s land, was sold for 55 million won in July 2018, but it was resold for 100 million won in September last year, after only two years. In two years, the land price has almost doubled. 156 nearby Migok-ri also traded for 100 million won in 2018, but last year it was changed to 270 million won.

“The popularity of Sejong land in the auction market has steadily increased,” said Oh Myung-won, a researcher at Jiji Auction. As there is a movement to expand past the stages of development and maturity, the popularity of Sejong land auctions is expected to remain steady for the time being.”

However, it is necessary to be cautious of purchasing land with a rare possibility of development through a’don’t ask investment’ method or a land transaction of’split shares’, a representative technique of planning real estate. Researcher Oh said, “You should not invest in items that you cannot understand from common sense, such as blind papers coming out for sale.”