Replacing 'Kim Bu-seon' with 'Kim Yong-seon'... Boon or bane for house prices in Gimpo and Incheon?

Improved Access to Seoul City Center Including Yeouido and Yongsan
Strong Opposition to Cancellation of Direct Gangnam Connection but Also Positive Reactions
However, House Prices with Prior GTX Implementation May Stall

Members of the Gimpo Geomdan Transportation Citizens' Coalition and local residents holding candles and taking collective action to demand the direct connection of the GTX-D line to Gangnam
[Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] The controversy surrounding the ‘Gim-bu-seon (Gimpo~Bucheon section)’ of the Western Metropolitan Express Railroad (GTX-D) has led to mixed outlooks for the real estate market in the western region, including Gimpo and Incheon’s Geomdan, after the route was finalized to connect directly to Yongsan via shared tracks with GTX-B instead of a direct connection to Gangnam in Seoul.

While some believe this will act as a positive factor due to significantly improved access to central Seoul stations like Yeouido and Yongsan, others analyze that housing prices may stagnate in the long term since the expectation of a direct Gangnam connection has already been factored into asking prices, and most plans besides the ‘Gim-bu-seon’ remain in the review stage.

According to the Ministry of Land, Infrastructure and Transport on the 30th, the government finalized the GTX-D line as a new section between Gimpo Janggi Station and Bucheon Sports Complex Station through the ‘4th National Railroad Network Construction Plan.’ Instead, they decided to pursue a plan to operate GTX-D trains directly to Yongsan Station via shared tracks with GTX-B, passing through Sindorim Station and Yeouido Station. This will enable travel times from Gimpo Janggi Station to Yeouido Station in 24 minutes, Yongsan Station in 28 minutes, and Sinnonhyeon Station in 39 minutes.

Among residents in the western region such as Gimpo, there is a mixed atmosphere of backlash over the cancellation of the direct Gangnam connection and positive reactions that the direct Yongsan connection represents a partial success. Industry experts mostly analyze that despite the cancellation of the Gangnam connection, the direct Yongsan connection and the extension of Line 5 could still be significant positives. This is because housing demand in the metropolitan area is expected to disperse, especially among commuters to Seoul, potentially increasing the value of Gimpo real estate.

In fact, after the announcement of the ‘Gim-yong-seon (Gimpo~Yongsan section)’ the previous day, popular apartments such as Hangang Central 1 Complex in Janggi-dong, Hangang New Town Chodang Village Jungheung S-Class Liberty, and Pungmu Central Prugio in Pungmu-dong appeared in real-time popularity rankings on real estate transaction apps like ‘Hogangnono,’ drawing attention. A Ministry of Land official explained, "Among western region residents, there is also significant public opinion favoring connection to central Seoul such as Yongsan over the highly uncertain Gangnam direct connection."

However, concerns have also been raised that this could be a negative factor for Gimpo, which was even nicknamed ‘Gold (Geum)po’ due to GTX expectations. In particular, plans proposed by the Ministry of Land as incentives, such as the extension of Seoul Line 5 to Gimpo and Geomdan or direct operation to central Seoul, are still only in the planning or review stages, making it difficult to prematurely conclude these as positives. According to the Korea Real Estate Board, apartment prices in Gimpo maintained a rise of around 0.2% until early this year but dropped to 0.01?0.03% after the ‘Gim-bu-seon’ announcement. For example, an 84.96㎡ (exclusive area) unit in Hangang Central Xi 1 Complex was sold for 694 million KRW in March but fell to 610 million KRW on the 6th.

Additionally, residents have expressed concerns that the GTX-D linked projects could be canceled due to the GTX-B project, which has yet to even begin construction. The Geomdan New Town Smart City General Association criticized, "They announced an absurd GTX-D line connected to GTX-B," and pointed out that "the extension of Seoul Line 5 was also qualified with the condition of inter-local government negotiations." A real estate agent office official in Janggi-dong, Gimpo, said, "Although it is disappointing, many residents consider the connection to central Seoul a positive factor," adding, "For the time being, the market seems to be in a wait-and-see mode."

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