Capital Region Housing Prices React to Transportation Developments... Siheung and Uiwang 'Smile', Gimpo 'Frown'

According to the Metropolitan Transportation Plan, the Seoul Metropolitan Area sees mixed fortunes
Transportation benefits like Shinguro Line and GTX-C drive soaring home price growth in Siheung and Uiwang
Apartment prices in Gimpo stall after GTX-D line reduction announcement... 'Disappointment sales' also increase

On the afternoon of the 29th, in front of a building in Yongsan-gu, Seoul, where the 2nd Metropolitan Area Wide-area Transportation Basic Plan and the 4th Metropolitan Area Wide-area Transportation Implementation Plan public hearing were held, members of the Gimpo Geomdan Transportation Citizens' Coalition staged a protest urging the change of the planned 'GTX-D' line connecting Gimpo and Bucheon to a direct connection to Seoul and the connection of Seoul Subway Line 5 to Gimpo.
[Image source=Yonhap News]

[Asia Economy Reporter Ryu Tae-min] The real estate market in the Seoul metropolitan area is experiencing mixed fortunes due to transportation benefits such as the metropolitan transportation network. Sin-Guro Line and the expectation of stops on the Seoul Metropolitan Express Railway (GTX) Line C have benefited Siheung and Uiwang, where housing prices are soaring and setting new records daily. On the other hand, in Gimpo, residents are strongly opposing the GTX Line D plan, which failed to connect to the Gangnam area of Seoul. In particular, disappointment over the route reduction announcement is leading to a slowdown in housing price increases and an increase in disappointed listings.

Siheung and Uiwang Excited by ‘Sin-Guro Line Construction and GTX-C Stops’ Expectations

According to the Korea Real Estate Board on the 17th, apartment prices in Siheung, Gyeonggi Province, rose by 0.90% in the second week of May. Although the increase was slightly less than last week’s 0.96%, it remains the highest nationwide by city/province standards. Siheung is considered one of the biggest beneficiaries of the 4th railway network plan. The announcement of the new Sin-Guro Line connecting Siheung and Mok-dong has been warmly welcomed by residents of Siheung, who were previously in a railway transportation blind spot. In addition, expectations are growing for various transportation benefits such as the opening of the Shinansan Line and the 2nd Gyeongin Line, as well as the development of various infrastructures.

The asking price for a 76㎡ (exclusive area) unit at ‘Siheung Central Prugio’ in Daeya-dong is around 1.1 billion KRW. This is nearly 500 million KRW higher than the actual transaction price of 670 million KRW in February. A representative from real estate agency A in Daeya-dong said, “Recently, the news of the Sin-Guro Line being built has increased the number of people looking to buy homes here, but homeowners are withdrawing listings due to expectations of rising prices.”

Uiwang City in Gyeonggi Province, which is promoting the double-track railway (Wolpan Line) connecting Wolgot to Pangyo and the GTX-C line stop, is also in a very excited mood. The apartment price increase rate in the second week of May was 0.69%. This is more than twice the Gyeonggi Province average (0.31%) and the second highest nationwide after Siheung. Apartment prices in Uiwang rose 17.08% this year, ranking first nationwide.

Gimpo Frowns Over ‘Half-Hearted Transportation Benefits’

On the other hand, Gimpo City in Gyeonggi Province is ‘frowning’ as the GTX-D line is reduced. Contrary to previous expectations, the GTX-D line will not connect to Gangnam but will only run from Gimpo Janggi Station to Bucheon Sports Complex Station, as confirmed in the metropolitan area wide transportation basic and implementation plans.

Looking at the statistics from the Korea Real Estate Board, the apartment price increase rate in Gimpo dropped to 0.01% in the second week of May. This is a significant change compared to the rise to 0.24% as recently as February. The apartment price increase rate in Gimpo this year was 2.26%, the lowest in the Gyeonggi area.

Since the announcement of the GTX-D line reduction, ‘disappointed listings’ have increased due to concerns about falling housing prices. According to the real estate information platform ‘Apartment Actual Transaction Price,’ the number of apartment sale listings in Gimpo was 5,459 as of the 17th, an increase of 303 listings (5.8%) compared to a month ago. In contrast, during the same period, the total apartment sale listings in Gyeonggi Province decreased by 5,499 listings (4.9%).

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