Nearby Real Estate Stirred by Visualization of Gangbuk Transversal Line

Cheongnyangni Station~Mokdong Station Section 25.72km
Ministry of Land, Infrastructure and Transport Approves Urban Railway Network Plan

Preliminary Feasibility Review Pending
Caution Needed for Premature Investment

[Asia Economy Reporter Lee Chun-hee] As the 'Gangbuk Transversal Line,' which passes through the northwestern part of Seoul?a vulnerable area in the city's subway network?becomes more tangible, expectations in the nearby real estate market are also growing.

According to industry sources on the 18th, the Ministry of Land, Infrastructure and Transport approved and announced the '2nd Seoul Metropolitan City Urban Railway Network Construction Plan,' which includes 10 lines totaling 71.05 km, such as the Gangbuk Transversal Line and Mokdong Line, the day before. This comes about 1 year and 4 months after Seoul City applied for approval of the plan to the Ministry in July last year.

The focus of market attention is on the Gangbuk Transversal Line, a route that the late former Seoul Mayor Park Won-soon had highlighted as a key project. This line, with a total length of 25.72 km, is planned to run from Cheongnyangni Station through Kookmin University, Hongje, Digital Media City (DMC), to Mokdong Station. Most of the Gangbuk section overlaps with the Naebusunhwan-ro (Inner Circular Road). Areas in northwestern Seoul, such as Gajwa, Yeonhui, Hongne, and Hongje-dong in Seodaemun-gu, and Pyeongchang-dong in Jongno-gu, which have had weak urban railway networks, are expected to benefit. The estimated project cost is 2.0546 trillion KRW.

In particular, residents in the Bukgajwa and Namgajwa-dong areas have high expectations. With the Gajaeul New Town project having drastically changed the map of this area and the expansion of the subway network, there are predictions that residential conditions will improve. For example, in Namgajwa-dong's 'DMC Parkview Xi,' where the Gangbuk Transversal Line's 'Station 113' is expected to be located nearby, the market price for an 84㎡ (exclusive area) unit, which was around 900 million KRW in February last year, was recently transacted at 1.3 billion KRW last month, setting a new record high. A representative from real estate agency A in the area said, "This was an area where transportation was inconvenient due to the lack of a subway," adding, "Residents have high expectations not only because of the Gangbuk Transversal Line but also because the Western Line is expected to pass near the complex."

However, there are significant hurdles to realizing the Gangbuk Transversal Line. It is uncertain whether it can pass the preliminary feasibility study conducted by the Ministry of Economy and Finance. According to Seoul City's estimates, the benefit-cost ratio (B/C) of the Gangbuk Transversal Line is only 0.87. A figure below 1 means the project lacks economic feasibility.

There are also warnings to be cautious about hasty investments. An industry insider advised, "Large-scale transportation infrastructure projects like railways often take 10 to 20 years to complete, and considering that prices tend to rise step by step, reckless investment should be avoided."

Mokdong Line Route Map (Provided by Seoul City)

Mokdong in Yangcheon-gu, a major school district in Seoul, is also generating excitement as it is the terminus of the Gangbuk Transversal Line and falls within the influence of nearly half of the Mokdong Line route. The Mokdong Line will connect 10.87 km from Sinwol-dong to Dangsan Station, aiming to improve the severe traffic congestion that has long plagued the Mokdong and Sinwol-dong areas.

Hwang Hee, a member of the Democratic Party of Korea representing Yangcheon-gu Gap, where Mokdong is located, said, "The final official announcement by the Ministry of Land, Infrastructure and Transport means that there was sufficient prior consultation among related agencies such as Seoul City, the Ministry of Land, Infrastructure and Transport, and the Ministry of Economy and Finance, which provides a solid basis for the Ministry of Economy and Finance to conduct a preliminary feasibility study on these lines," adding, "We have taken a big step closer to the goal of early construction of the Gangbuk Transversal Line and the Mokdong Line."

This content was produced with the assistance of AI translation services.