[Square] Investment Priority No.1, The Impact of GTX on the Real Estate Market

Im Chae-woo, Senior Real Estate Specialist at KB Kookmin Bank

Although the government announced a plan to supply 830,000 housing units nationwide through the 2.4 measures, housing prices continue to rise. In particular, the rate of increase is fierce in the outskirts of Seoul and Gyeonggi-do areas where the GTX is scheduled to open.

According to KB Live Real Estate, as of the 3rd of this month, the nationwide apartment price increase rate is 6.77%, Seoul 5.49%, Gyeonggi-do 10.91%, and Sejong City 5.71%. The increase rate in Gyeonggi-do is relatively high, especially in areas where the GTX will open, such as Deogyang-gu (19.7%) and Ilsandong-gu (18.14%) in Goyang City, Uijeongbu City (14.86%), Yangju City (11.67%), Namyangju City (12.56%), Ansan City (12.79%), and Uiwang City (13.42%), all of which exceed the average increase rate.

In December last year, Deogyang-gu in Goyang City, where the opening of GTX Changneung Station in the 3rd phase Changneung New Town was confirmed, recorded the highest nationwide increase. Near Changneung Station, an apartment complex in Wonheung within walking distance saw the price of an 84㎡ unit jump by 200 million KRW to 1.1 billion KRW immediately after the announcement. Goyang City, aiming to open the GTX A line by the end of 2023, is experiencing a sharp rise in housing prices as three stations?KINTEX Station, Daegok Station, and Changneung Station?will stop there. An 84㎡ apartment near Dongtan Station, the southernmost station of the GTX A line, was traded at around 1.4 billion KRW, similar to prices in Seoul.

Uijeongbu City and Yangju City, located at the northernmost part of Gyeonggi-do and previously less recognized, are seeing vertical increases in real estate prices as Uijeongbu Station and Yangju Deokjeong Station are confirmed stops on the GTX C line. Nearby real estate, including Changdong Station, Kwangwoon University Station, Cheongnyangni Station, and Geumjeong Station south of the Han River, are also directly benefiting. The area near Sangnoksu Station, which is being discussed as an additional stop on the C line, is also experiencing steep price increases. Apartments around Maseok Station and Pyeongnae-Hopyeong Station, located at the easternmost part of the GTX B line, as well as the Songdo area, which had poor accessibility to Seoul, are expected to be re-evaluated.

Among the GTX lines, areas located on the outskirts of the metropolitan area with relatively low real estate prices are expected to benefit the most. On the A line, Ilsan New Town, which had been overshadowed by Pangyo and Bundang, is receiving renewed attention. On the B line, benefits are expected in Pyeongnae-Hopyeong and Byeollae housing development districts, Songdo New Town, and areas near Incheon City Hall Station, Bupyeong Station, and Bucheon Sports Complex Station. Bucheon Sports Complex is also expected to offer transfers to the GTX D line. On the C line, older apartments near Yangju Deokjeong Station, Hoecheon New Town, Uijeongbu Station, Geumjeong Station, and areas near Suwon Station are expected to benefit the most. On the D line, accessibility to Gangnam from Gimpo Hangang New Town, Geomdan New Town, and Bucheon areas will improve dramatically.

The GTX stations settling in the outskirts of Seoul also appear to have significant ripple effects. The value of real estate near Sanggye Jugong and Changdong Jugong apartment complexes near Changdong Station, housing near Yeonsinnae Station, and properties near Kwangwoon University Station, Cheongnyangni Station, and Sindorim Station is expected to rise. Cheongnyangni (B, C lines), Seoul Station (A, B lines), and Samseong Station (A, C, D lines), which are expected to be GTX transfer stations, will establish themselves as central hubs in Seoul. One of the biggest beneficiaries is expected to be the 3rd phase new towns, notably Changneung New Town in Goyang City, where Changneung Station opening is confirmed, and Wangsuk New Town, connected to GTX B line and Line 9.

There are also points to be cautious about. Until the GTX lines open, many obstacles such as cultural heritage excavations, design changes, and cooperation from local governments and residents are expected. Additionally, the actual opening date may be delayed by 2 to 3 years from the target, so long-term investment strategies should be planned.

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