Abstract

This paper analyzes the impact of the establishment of Sejong Special Self-Governing City on the neighboring regions, that is, Gongju, Daejeon, Cheonan, Cheongju, and Cheongwon, with a focus on the housing market. According to the results of the double-difference of housing price fluctuations using data from 2010, 2014 of the Housing Survey, housing prices in the neighboring areas seem to rise less compared to other areas with a relatively low ratio of emigrants moving to Sejong to their residents, that is, they are likely to have received a smaller effect from the launch of Sejong. And the degree to which the neighboring areas have a smaller increase in housing prices becomes stronger when they are restricted to the areas with geographic proximity and similarity in economic characteristics. In particular, in the case of Gongju City, compared to other areas with similar characteristics such as labor supply, industrial structure, and degree of aging, the increase in housing prices was significantly smaller. Housing price is an important indicator that has to be studied in order to lead a stable residential life, and identifying the impact of new urban and regional development on neighboring areas and finding solutions should be regarded as very important in the implementation of housing policies.

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