[Practical Finance] GTX Opening One Month Away...Check Distance and Timing Carefully

Suseo~Dongtan Opening Scheduled for Late March
Paju Unjeong~Seoul Station by Year-End
Warmth in Gyeonggi Southern Sales Market
67% Increase in Transactions in 5 Cities
Long Distance Between Stations Makes Mid-Area Less Significant
Areas with Improved Transportation Inconvenience Benefit More

The opening of the Suseo~Dongtan section of the Metropolitan Area Express Train (GTX) Line A is just a month away. Despite the overall downturn in the real estate market, there is a slight warming in the sales market, especially in the southern Gyeonggi region where accessibility to Seoul is improving. However, it is pointed out that actual construction and opening may take longer than expected, and investments should be made considering the unique characteristics of GTX compared to regular urban railways.

This Year’s Metropolitan Area Boon is ‘GTX’

Although nationwide apartment sale prices have been declining since the end of last year, an upward trend has appeared over the past six months, centered on the southern Gyeonggi region through which GTX Line A passes. According to the real estate big data platform Asil, the price change rates over the last six months were highest in Gwacheon at 4%, Hwaseong 1.2%, Yangju 1.1%, Yongin 0.7%, Siheung 0.6%, Seongnam 0.5%, and Suwon 0.3%. While the real estate market nationwide has continued to decline following the interest rate hikes in the second half of 2022, the southern Gyeonggi region has shown an upward trend.

On the 5th, the first GTX-A train was unveiled at the Dongtan Station platform in Hwaseong, Gyeonggi Province. Photo by Jinhyung Kang aymsdream@

In particular, last year’s apartment transaction volumes in Gwacheon, Hwaseong, Yongin, Seongnam, and Suwon exceeded 30% of the total transactions in Gyeonggi Province (138,129 cases), driving the Gyeonggi real estate market. While the total transaction volume in Gyeonggi increased by 25%, the volume in these five cities rose by about 67%.

According to KB Real Estate, the transaction volumes in the five southern Gyeonggi cities were △Suwon 152,566 cases △Yongin 11,589 cases △Hwaseong 11,117 cases △Seongnam 6,422 cases △Gwacheon 708 cases. The year-on-year transaction volume growth rates were 240% in Gwacheon, 78% in Yongin, 69% in Seongnam, 68% in Hwaseong, and 53% in Suwon. This appears to be the result of demanders participating in the metropolitan sales market, influenced by policy mortgage products such as the Special Home Loan and the GTX-related benefits at prices cheaper than Seoul.

Even within Gyeonggi Province, the market shows contrasting trends. The southern Gyeonggi region, within Seoul’s commuting zone, is supported by expectations of employment growth and improved transportation networks. In contrast, the northern Gyeonggi region has seen a relatively diminished impact from transportation benefits. For example, in Paju City, last year’s transaction volume was 4,661 cases, a mere 6% (324 cases) increase from the previous year’s 4,337 cases. However, after the GTX line announcement, a large number of accumulated unsold units in Paju were resolved.

GTX Allows 30-Minute Travel but Has a Narrow Benefit Range

The first GTX line, Line A’s Suseo~Dongtan section, is scheduled to open at the end of next month. The Ministry of Land, Infrastructure and Transport (MOLIT) announced plans to fully open the GTX Paju Unjeong~Seoul Station section by the end of the year. After opening, travel between Suseo and Dongtan will take 19 minutes, and between Unjeong and Seoul Station will take less than 20 minutes.

MOLIT plans to start construction early this year on the Yongsan~Sangbong section of Line B (Incheon National University Entrance~Maseok), aiming for full construction within the first half of the year and opening by 2030. After opening, travel from Incheon to Seoul Station will take 30 minutes, and from Maseok to Cheongnyangni will take 23 minutes. Line C (Deokjeong~Suwon) is also planned to begin construction early this year and open in 2028, enabling travel from Suwon to Samsung Station in 27 minutes. MOLIT expects an average of 1.83 million people per day to benefit from GTX. Earlier this year, MOLIT proposed extending Lines A, B, and C and establishing new Lines D, E, and F.

The government has promoted GTX to address population concentration in the metropolitan area and alleviate traffic congestion. Earlier this year, with the announcement of the second phase including Lines D, E, and F, the range of beneficiary areas expanded. However, unlike subways, GTX stations are spaced farther apart than typical urban rail, and the benefit range from the opening of the line is narrower than expected, according to industry consensus.

An industry insider explained, "While accessibility to Seoul will greatly improve near the stations, GTX runs at speeds of 150 km/h, making it more like an express train, and the long distances between stops mean intermediate stations may have little significance. Compared to subways with closer station spacing, the halo effect will be lower." He added, "Lines D, E, and F are likely to utilize existing KTX lines rather than passing through downtown Seoul, so a more detailed review of the 5th Metropolitan Transportation Network Plan and others is necessary."

Focus on Quick Sales... Consider Distance from Stations and Opening Times

Experts advise that since benefits like GTX openings are reflected after plan announcements, it is better to consider mainly quick-sale properties. Ham Young-jin, head of the Zigbang Big Data Lab, said, "With GTX nearing completion, rental demand may increase, so it is worth aiming for monthly rental income. However, it is not yet the best time for investment, so focusing on quick-sale properties is advisable."

Distance from GTX stations and opening times should also be considered. Jo Eun-sang, director of Real Today, said, "When choosing investment locations, accessibility to GTX stations is the most important factor, and the ‘opening time’ is also a crucial consideration. Lines D, E, and F are still far from being investment-worthy. Once Line A opens, demanders will feel the impact more directly. Compared to Seongnam, which already had good transportation conditions, Paju and Dongtan will become more convenient, so areas that were previously inconvenient will benefit more."

Doosung Kyu, director of the Mokmin Economic Policy Research Institute, said, "With the real estate market’s interest rate cuts remaining uncertain, transportation improvements are being recognized as a positive factor by demanders. Ahead of the general election, plans for the second phase seem to have been announced somewhat hastily to gain support from residents in transportation blind spots. While GTX will undoubtedly act as a boon, investments should be made considering its characteristics."

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