Still looking at their own feast, Sejong City… Hana Kim’s R

Sejong City where 1 billion units are ridiculous… It’s becoming common now
The total set value of 200 million → 390 million, doubled in 5 months
The pre-sale quantity is small, and the general supply is’blood of new feet’

Sejong City's official brokerage.  There is no charter for sale, and the price for rent has doubled in half a year.  / Photo = Yonhap News

Sejong City’s official brokerage. There is no charter for sale, and the price for rent has doubled in half a year. / Photo = Yonhap News

“Write the article straight”, “What is nonsense”… .

Last July. Shortly after writing an article stating that Sejong City’s apartment was sold and quoted, the reporter received several e-mails from readers. Even though it was an e-mail of protest, I wrote a reply, but unfortunately, the e-mail of the reporter’s reply was open to the Internet cafes in Sejong City, and bad comments began to spread. The bad comment was “The house price did not rise as much as the article.”

Looking at the numbers alone, I felt bitter as I watched the e-mail posts that were flooded with criticism. Around that time, a mail came. The reader, who introduced himself as a Sejong citizen, appealed, “From the standpoint of homeless people, I would like to ask for additional interest and articles on the soaring real estate prices in Sejong City. The reader who sent the e-mail said, “After Seoul, I am irritated by the push-and-run policies that are soaring even local house prices.”

I was relieved at the thought that there were readers who could understand what the knight meant to say. We have not seen the trend of rising quotes, cancellation of existing contracts, and rising actual transaction prices. At the time, I was worried about Sejong City. It was because Sejong City, where the rental price was very cheap, but when the price of the house rises, investors will come to buy a house from outside, and they will of course try to buy it at a high rental price. It fell in line with the timing when the prices of nearby houses such as Daejeon and Cheongju rose, and investors flocked to Sejong City.

After last July’Sejong City Cheondoron’… House price and total rent soar to the ceiling

On July 20, last year, Kim Tae-nyeon, the leader of the Democratic Party, brought out the ‘Chondoron of Sejong City’ in a representative speech of a bargaining group in the National Assembly. The middle title of CEO Kim’s speech included ▲We will eradicate real estate speculation and guarantee housing rights ▲We must complete the administrative capital for balanced national development. It was to expedite real estate-related legislation including the July 10 measures announced earlier.

Representative Kim said, “The whole National Assembly must go down to Sejong City. Through more active discussions, both the Blue House and the government departments must also be relocated,” he said. Articles poured out that Sejong City’s Cheondo Loan was announced and real estate prices rose. CEO Kim Tae-nyeon, who poured oil on the house price, blamed the media for the rising house price.

Kim Tae-nyeon, the representative of the Democratic Party, giving a speech to the representative of the parliamentary bargaining group on July 20 last year.  Through a speech that day, the theory of capital transfer was first raised.  / Source = Hankyung DB

Kim Tae-nyeon, the representative of the Democratic Party, giving a speech to the representative of the parliamentary bargaining group on July 20 last year. Through a speech that day, the theory of capital transfer was first raised. / Source = Hankyung DB

According to data from the Korea Real Estate Agency, from the beginning of last year to July 20th, the apartment sale price in Sejong City rose 21.36%, and the rented rent rose 13.88%. However, as the Cheondo Loan emerged and the buying trend was rising, the sale price of apartments in Sejong City rose 42.65% last year and the rental price increased by 62.43%, respectively. It also contributed to the Lease Protection Act. In five months, the house price rose by more than 20% and the rental price rose by nearly 50%, recording the highest rate of increase in the country.

‘1 billion apartments’, which were criticized for being reported at the time, are now common. The mid- to large-sized trading price also exceeded 1.5 billion won, which is the line where loans are impossible. Last month, Hansol-dong’s first village 3rd complex First Prime (exclusive 149m2) was sold for 1.7 billion won, and Bangok-dong Surubae 3rd complex ResueBuilder River (exclusively 134m2) also posted 1.7 billion won. This is also true based on the exclusive area of ​​84㎡. Saerom-dong The Sharp Hill State renewed the reported price by trading at 1.15 billion won last month. Apartments with a loan limit of 900 million won or more will be reduced to 30 to 40 pyeong based on the old standard of medium-sized apartments.

‘Tenant pain’ doubled in less than half a year

The reason why the house price in Sejong City moves so rapidly as if the oil heats up is because there is no’substitution’. Most of Sejong City is composed of’new apartments’. It is not easy to maintain the residential area by moving the housing type like other areas. It is said that if an apartment is expensive, it is impossible to change to a villa, or to move to a building if a new construction is expensive. Since they are standardized apartments like modules, there is only a time difference, but house prices tend to show the same trend.

Once it rises, they all rise together, and once it falls, they all fall together. So the tenant is the problem. This is because tenants have to leave at all if they cannot afford the rising jeon tax. It gets even more difficult if your children are in school. Since there are many schools in Sejong City, short-distance commuting is more common than long-distance commuting. Schools were designated for each apartment. When I leave my apartment, I transfer school. If you buy a house and go, what will be the problem, but if you have to transfer to school due to the rented price, it will be miserable.

Sejong City Apartment Construction Site Viewed from the Millmaru Observatory [사진=연합뉴스]

Sejong City Apartment Construction Site Viewed from the Millmaru Observatory [사진=연합뉴스]

If you compare the number of floors similar to the same house type based on an exclusive area of ​​84 square meters, which is called Gukpyeong, a short-term surge appears. In the case of The Sharp Lake Park in Eojin-dong Complex 3, a worldwide drug was signed for 200 million won in August of last year, but last month it was 350 million won. It is a calculation that it has increased by 75% in 4 months. Bando Yubora in Dodam-dong 11 complex was also 200 million won in July last year, but last month it has nearly doubled to 390 million won. There was also a charter over 500 million won. A charter of 510 million won was signed at The Heist in Dajeong-dong this year. In Dodam-dong, Dajeong-dong, and Saerom-dong, the rented apartments in areas where house prices exceed 1 billion won are surpassing 400 million won.

It is useless to dream of subscription while enduring as a tenant in Sejong City. Thanks to the government’s refurbishment several times (?), there are few apartments in Sejong City that go to the general public. The release of the’Sejong Richencia Familia’ of the 6-3 living area, which attracted attention as the first apartment in Sejong City this year, was controversial. Of the 1350 households in total supply, the general sales volume of 85㎡ or less for exclusive use is expected to be only about 24 households. Based on the exclusive area of ​​85㎡ or less, 24 out of 1212 households. 98% is special supply and only 2% is allocated to the general public.

According to the relevant laws and regulations, 58% of the total supply, including newlyweds (20%), the first in life (15%), multi-children (10%), institutional recommendation (10%), and elderly parents (3%), must be allocated as special supplies. do. In addition, Sejong allocates an additional 40% of the total volume to officials from the former agency as a special supply. Combined, 98% is a special supply.

Assignment of public officials and expansion of special work for the first time in life… There is no opportunity for general provision of tenants

The reason for the abnormal increase in special supplies so far stemmed from the July 10 real estate measures, which President Tae-nyeon Kim emphasized on legislation. This is due to the announcement of a plan to establish a new 7-15% (public residential land 15%, private residential land 7%) special supply for the first time, which was not in private housing. Private sales in the Sejong Richencia Familia correspond to the sales of public housing, and 15% is applied.

  Sejong Mayor Lee Chun-hee.  Recently, it has announced that it will reduce special supply and increase general supply in apartment sales.  / Photo = Yonhap News

Sejong Mayor Lee Chun-hee. Recently, it has announced that it will reduce special supply and increase general supply in apartment sales. / Photo = Yonhap News

Sejong Mayor Lee Chun-hee said, “The city will actively review it so that it can be supplied to general (sale) at an appropriate level.” It is said that the rate of special supply will be reduced, but it is at the level of’new blood’. In Sejong City, 7861 units, including 5684 units for sale and 2177 units for rent, will be supplied this year. Even if the number of general furniture is increased in a pre-sale apartment, it is expected to be less than 500.

In the end, only the tenants of Sejong City are suffering after coming out with a’Sejong City Cheondoron’ to pay for a house in Seoul. Government heads such as Hong Nam-ki, Deputy Prime Minister of Economy, and Minister of Land, Infrastructure and Transport Byun Chang-heum, pledged to acquire real estate from the beginning of the year. Hopefully, the market structure is relatively simple, and there are many houses held by public officials, and I hope you can use Sejong City, the garden of former President Lee Hae-chan of the Democratic Party, as a model. The problem of jeonse directly connected to survival is urgent. Please do anything to show results.

Hankyung.com reporter Kim Hana [email protected]

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