GTX Access Boosts Housing Prices in Four Gyeonggi Areas Despite Market Slump

Gyeonggi Province Falls 0.02%, Continuing 5-Week Decline
Only 4 Cities Among 28, Ansan, Icheon, Paju, Pocheon, Show Upward Trend
Ansan Reverses to 0.07% Rise Following Additional Announcement of Sangroksu Station

[Asia Economy Reporter Kangwook Cho] Although the nationwide housing price decline is intensifying, four cities in Gyeonggi-do?Ichon, Ansan, Paju, and Pocheon?are showing an upward trend, drawing attention. Despite the freezing real estate market, the positive impact of the Metropolitan Express Railway (GTX) appears to be driving the housing price increases in these areas.

According to the apartment price trend for the fourth week of February announced by the Korea Real Estate Board on the 4th, as of the 28th of last month, apartment sale prices in Gyeonggi-do fell by 0.02% compared to the previous week, continuing the downward trend. After the first decline on January 31st this year at -0.03%, the rates were -0.02% in the first and second weeks of February and -0.03% in the third week, marking five consecutive weeks of decline up to this date. Notably, in the fourth week of February, 24 out of 28 cities showed a downward trend. Compared to the previous week, when 21 out of 28 cities recorded negative growth rates, the overall decline appears to have spread.

However, among these, three cities?Ichon, Paju, and Pocheon?have shown steady increases. Additionally, Ansan reversed its trend from -0.01% in the second and third weeks of February to 0.07% in the fourth week. The common factor among these four locations is the GTX benefit. Even though the GTX construction has not yet started, it is influencing housing prices in these areas. According to the 'GTX Project Progress Status' recently announced by the Ministry of Land, Infrastructure and Transport, the GTX-C line implementation agreement includes a plan to add four stations: Wangsimni Station, Indeogwon Station, Uiwang Station, and Sangnoksu Station. This increases the number of stops to 14. In Sangnok-gu, where the GTX line passes, prices jumped 0.16% in just one week, driving the rise in Ansan city. This is the first time since the third week of December last year (0.12%) that apartment prices in Sangnok-gu have risen by over 0.1%.

The asking price for a 44㎡ unit in ‘World Apartment’ near Sangnoksu Station on Subway Line 4 in Bono-dong soared to 600 million KRW. This is 145 million KRW higher than the actual transaction price of 455 million KRW in December last year. The asking price for a 38㎡ unit, which was traded at 360 million KRW last month, also rose by 110 million KRW to 470 million KRW. Additionally, the 84㎡ apartment in ‘Indeogwon Village Samsung’ near Indeogwon Station was traded at 1.135 billion KRW before the GTX-C stop announcement but jumped to 1.31 billion KRW afterward. A local real estate agent said, "Homeowners have withdrawn listings following the GTX stop announcement and are taking a wait-and-see approach."

However, some argue that the housing price increases in these areas could be a ‘bubble.’ Given that prices sharply rose and then quickly cooled down last year due to GTX benefits, the recent rise is interpreted as merely ‘expectation.’ Professor Daejung Kwon of Myongji University’s Department of Real Estate said, "In some areas, vague expectations about GTX seem to have been excessively reflected in housing prices."

Meanwhile, the apartment sale price change rate in Seoul was -0.03%, a larger decline than the previous week (-0.02%). In Incheon, the rate shifted from a 0.02% decline last week to 0.00% this week, stabilizing. The overall metropolitan area maintained a 0.02% decline, the same as the previous week. Nationwide and regional apartment price change rates remained at -0.01% and 0.00%, respectively, unchanged from the previous week.

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