Is GTX Igniting Housing Prices? Goyang Sees Over 200 Million KRW Surge in Just One Week

GTX-A Changneung Station New Construction Drives Apartment Prices Up in Donaedong Area
Expectations of Rising Home Prices Lead to "Contract Cancellation Despite Penalty Fees"
Continuous Transportation Benefits... Goyang and Yangju Top Nationwide Sales Price Increase Rankings 1st to 3rd

[Asia Economy Reporter Ryu Tae-min] "As soon as the news came out that a station for the Metropolitan Area Express Train (GTX) would be established, a large number of sales transactions were canceled. Sellers unilaterally terminated contracts even if they had to pay penalties." (Representative of real estate agency A in Goyang, Gyeonggi Province)

GTX is becoming a trigger for housing prices in the metropolitan area. While the upward trend in housing prices is spreading to major areas in the metropolitan area, the expectation of improved transportation conditions is causing the outskirts, which had been relatively excluded from the housing price rise, to become lively.

According to frontline real estate brokerage industry on the 28th, in the Deokyang-gu area recently, housing prices have soared, leading to repeated contract cancellations and withdrawal of listings by sellers. The announcement on December 29 last month confirming the establishment of Changneung Station on GTX-A line was the catalyst. This line, which runs from Paju in Gyeonggi Province through Ilsan and Seoul Station to Samseong Station, is expected to improve accessibility not only to downtown Seoul but also to Gangnam, according to local real estate offices.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price disclosure system, an 84㎡ (exclusive area) unit in Goyang Wonheung-dong Ilsuite was traded for 860 million KRW on December 28 last year, but a contract was signed for 1.1 billion KRW on the 5th of this month. The price jumped by 240 million KRW in just over a week. Nearby, an 84㎡ unit in LH Wonheung Doraeul Village Complex 4 also recorded a new high by trading at 900 million KRW. This apartment was traded for 620 million KRW just a month ago. Doraeul Parkview 84㎡, which was 650 million KRW on December 21 last year, also rose to 815 million KRW earlier this month. A representative of real estate agency B in the area said, "Since the announcement of the GTX station establishment, hundreds of inquiries have been coming in daily," adding, "The asking price for the most expensive Goyang Wonheung-dong Ilsuite 84㎡ has risen to as much as 1.5 billion KRW."

The Doraeul Village in Donae-dong, where housing prices surged this time, was a place that had not attracted much attention due to inconvenient transportation conditions. The 84㎡ unit in Goyang Wonheung-dong Ilsuite, despite its affordable price in the 300 million KRW range, failed to fill residents at the time of sale in 2015. However, the current price of this apartment has soared to 1.1 billion KRW, nearly four times the original sale price.

The rapid rise in housing prices triggered by GTX is not limited to Goyang City. Most of the places leading the housing price rise this year are within the GTX influence zone. According to the Korea Real Estate Board, Yangju City in Gyeonggi Province, the terminus of GTX-C line, ranked first in the cumulative weekly apartment price increase rate up to the third week of this month with 4.12%. Deokyang-gu in Goyang ranked second with 3.45%, and Ilsanseo-gu in Goyang, which includes Kintex Station on the A line, ranked third. Beneficiary areas of the B line, Yeonsu-gu in Incheon and Namyangju City in Gyeonggi Province, also recorded high increases of 2.84% and 2.1%, respectively.

Professor Shim Gyo-eon of Konkuk University’s Department of Real Estate said, "The area near Changneung Station, where housing prices had not risen significantly, is now rapidly increasing due to transportation benefits, appearing to catch up with other areas," adding, "There is no sign that the rental housing shortage in the metropolitan area will be resolved in the short term, and housing prices in these areas are rising again."

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