[3rd New Housing Sites] Two New Town-Level Areas in Uiwang, Ansan, and Gunpo... "Questions on Dispersing Seoul Demand"

Announcement of 3rd New Housing Sites for 140,000 Households
"Mostly in Gyeonggi Province Rather Than the Seoul Metropolitan Area"
Dispersing Housing Demand in the Southwest... Expectation for Price Stabilization
However, Limited Capacity to Absorb Seoul Demand

The government announced on the 30th the third round of new public housing site candidates, totaling 140,000 households. Accordingly, the designation process for new housing sites under the 2·4 Supply Plan, which had been delayed due to speculation scandals involving employees of Korea Land and Housing Corporation (LH), has finally been completed after many twists and turns. The newly confirmed new housing sites in the metropolitan area include large-scale sites in Uiwang, Gunpo, Ansan, Hwaseong Jinan, and five medium-sized sites such as Incheon Guwol 2. The total supply volume reaches 120,000 households.

The plan is to build transportation networks, jobs, and cultural and living facilities suitable for local conditions to disperse housing demand in major urban centers. According to the government's plan, the site designation will take place in the second half of next year, with sales beginning in 2026. Amid soaring apartment prices centered on the metropolitan area recently, the designation of new housing sites is expected to serve as a foothold for stabilizing housing prices.

However, there are many concerns that it is difficult to confidently predict success, as it is unclear whether the project will proceed according to the original government plan amid growing resident opposition due to the LH scandal, and there is a possibility of recurrence of public official speculation controversies similar to those in the Gwangmyeong-Siheung district. Additionally, some in the industry evaluate that except for the Uiwang, Gunpo, Ansan districts and Incheon Guwol 2 district among the metropolitan area candidates, these sites are not locations that will effectively disperse demand from Seoul, raising concerns that the supply effect may not be significant.

Uiwang, Gunpo, Ansan Expected to Absorb Demand in the Southwest Region

Among the third round of new public housing site candidates, the largest supply volume is in the Uiwang, Gunpo, Ansan district. A total of 41,000 households will be supplied over 5.86 million square meters covering areas including Chopyeong-dong, Wolam-dong, Sam-dong in Uiwang City, Domagyo-dong, Bugok-dong, Daeyami-dong in Gunpo City, and Geongeon-dong, Sasa-dong in Ansan City, Gyeonggi Province. This scale is comparable to the first-generation new town Pyeongchon New Town (5.89 million square meters), and once development is completed, it is expected to be reborn as a hub city in the southwestern metropolitan area.

It is located only about 12 km south of the Seoul city boundary, making its location excellent. The area spans from Uiwang Station on Subway Line 1 to Banwol Station on Subway Line 4, and is close to the Yeongdong Expressway and Seohaean Expressway, providing convenient transportation. Connecting the previously designated third-generation new towns Gwangmyeong-Siheung and the newly designated Uiwang, Gunpo, Ansan, and Hwaseong Jinan creates a southwestern metropolitan axis that balances with the southeastern Gyeonggi axis including Wirye, Pangyo, Bundang, and Dongtan.

Hwaseong Jinan, which is of new town scale, covers 4.52 million square meters in Jinan-dong, Banjeong-dong, Banwol-dong, and Gisan-dong, Hwaseong City, Gyeonggi Province. It will supply 29,000 households. This is an undeveloped area located northwest of Dongtan New Town. It has a good location with the downtown area of Yeongtong-gu, Suwon to the north and experiences high development pressure. Considering the regional characteristics with many young and middle-aged residents, it will be developed as a mixed-use city combining residential, commercial, business, and cultural functions with close proximity to workplaces. Parks, green spaces, and sports facilities will be provided over 1.35 million square meters, accounting for 30% of the total area, ensuring a pleasant residential environment.

Development of Medium-Sized Sites in Incheon, Namyangju, etc.

In the Incheon Guwol 2 district adjacent to the Incheon urban area, 18,000 households will be built over 2.2 million square meters. It is located in areas such as Yeonsu-gu, Namdong-gu, and Michuhol-gu, where apartment prices have recently surged sharply. Incheon Subway Line 1's Munhak Stadium Station passes through the district, and the GTX (Great Train Express) Line B is planned about 3 km nearby, providing excellent transportation.

In Hwaseong Bongdam 3 district, 17,000 households will be supplied over 2.29 million square meters. This is an undeveloped area about 5 km west of Suwon Station. The Suin-Bundang Line passes through the northern part of the district, offering good transportation conditions. An integrated urban spatial system will be established to share schools and parks with Bongdam 2 district.

Additionally, 7,000 households, 6,000 households, and 2,000 households will be supplied in Namyangju Jingeon, Yangju Jangheung, and Guri Gyomun, respectively. Namyangju Jingeon is located between Wangsuk and Dasan new towns, allowing utilization of new town infrastructure. Yangju Jangheung is near the northern side of Goyang Samsong district with good ecological environment, and Guri Gyomun is only 1 km from the Seoul boundary, offering excellent location.

Meanwhile, in the provincial areas, a total of 20,000 households will be built in Daejeon Jukdong 2 district, Sejong Jochiwon, and Sejong Yeongi. In Daejeon Jukdong 2, an innovation platform will be established linking Daedeok Research and Development Special Zone and Daejeon Jangdae Urban High-tech Industrial Complex. In Jochiwon, customized housing will be supplied for industrial complex workers in cooperation with Korea University and Hongik University. In Sejong Yeongi, a residential complex for workers in the administrative city will be developed.

Challenges Expected Due to Land Compensation and Speculation Allegations

However, despite the designation of these new housing sites, opinions are divided on the short-term effect on stabilizing housing prices in the metropolitan area. Although the volume is large, due to the nature of new development, it takes considerable time until actual occupancy, making it difficult to have an immediate effect on the market. In fact, the government announced plans to supply 119,000 households in five locations including Gwangmyeong-Siheung in the first half of this year, but housing prices in the metropolitan area and major provincial metropolitan cities are still rising rapidly.

Except for some, poor accessibility to Seoul is also cited as a limitation. Eunhyung Lee, a senior researcher at the Korea Construction Policy Institute, said, "Most of the new housing sites are better viewed as part of Gyeonggi Province rather than adjacent metropolitan areas. Even if connected to the metropolitan transportation network, it is not easy to be certain how much they will absorb housing demand from Seoul."

New towns may face difficulties in negotiations with original residents over land acquisition and speculation allegations, potentially causing future challenges. In response, Yoon Sung-won, First Vice Minister of the Ministry of Land, Infrastructure and Transport, explained, "We will proceed with the project swiftly and without setbacks so that the public can have confidence in stable housing supply."

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