[Real Estate Strategy] Chang-dong and Indeogwon Stirred by GTX-C Boost... Yangju and Uijeongbu Remain Sluggish

GTX-C Construction Preparations Begin in April
Chang-dong and Indeogwon See Positive Impact from Transport Developments
Yangju and Uijeongbu Home Prices Remain Flat
Oversupply of New Housing and Locational Limitations

The GTX-C (Greater Seoul Metropolitan Express Railway Line C) is set to begin construction preparations this month, having resolved its dispute over increased construction costs. The project, which had been at a standstill for about two years following the approval of the implementation plan, is now getting back on track, drawing attention to Chang-dong in northern Seoul and Indeogwon in Anyang as beneficiary areas. In contrast, in Yangju and Uijeongbu in Gyeonggi Province, where housing prices had stagnated due to an oversupply of new developments and locational constraints, expectations for development are being reflected only slowly.

Earlier this month, the Korean Commercial Arbitration Board presented an arbitration plan that allows for a partial increase in construction costs for the GTX-C private investment project. There had been significant disagreements over the budget, but with this arbitration, construction supervision and on-site personnel will be deployed to the site by the end of this month, and the project will return to normal through an amendment procedure to the implementation agreement.

GTX-C received approval for its implementation plan in December 2023 and held a groundbreaking ceremony the following January, but failed to break ground for two years. This was due to disagreements between the private operator, Hyundai Engineering & Construction consortium, and the Ministry of Land, Infrastructure and Transport over the total project cost, which was exacerbated by the sharp rise in construction expenses caused by COVID-19 and the Russia-Ukraine war.

With the dispute now resolved through commercial arbitration, concerns over construction delays have eased. The GTX-C line will run a total of 86.46 kilometers, connecting Deokjeong Station in Yangju, Gyeonggi Province, through Chang-dong, Cheongnyangni, and Samseong Stations in Seoul, to Suwon and Sangnoksu Stations in Suwon, Gyeonggi Province. The line will have a total of 14 stations, and once it opens, it is expected to reduce travel time from Uijeongbu to Chang-dong Station to five minutes and to Samseong Station to under 20 minutes.

Chang-dong: Double Boost from Station Area Development and GTX Opening

GTX-C, together with GTX-A, will serve as a core north-south transportation network for the Seoul metropolitan area, and is expected to have a significant impact on the real estate market. Typically, favorable transportation developments are reflected in housing prices at the stages of project announcement, groundbreaking, and completion. With the risk of construction delays now resolved, market expectations are rising again.

In Seoul, Chang-dong in the northern district is highlighted as a prime beneficiary. Once GTX-C opens, travel from Chang-dong to Samseong Station in Gangnam is expected to take around 15 minutes. Around Chang-dong Station, a multi-modal transfer center combining GTX-C, subway Lines 1 and 4, and buses is scheduled for completion by 2029. Recently, the privately financed Chang-dong Station complex, which includes restaurants and shopping facilities, was completed. In addition, a 28,000-seat multi-purpose cultural facility called Seoul Arena and the Seoul Digital Bio City (S-DBC) are also planned for the Chang-dong train depot area. The market anticipates that these developments, together with the GTX opening, will bring significant benefits to the area.

Already, apartment prices in the Chang-dong area near the new transfer center are rising. On April 1, a 58-square-meter unit in Chang-dong Jugong Complex 3 was sold for 760 million won, setting a new record. A 84-square-meter unit in Chang-dong Samseong Raemian, which was traded in the mid-800 million won range in January, was sold for 950 million won on March 20, also recording a new high.

In the southern part of Gyeonggi Province, the area around Indeogwon is also considered a beneficiary of development. Indeogwon Station will ultimately serve four lines: GTX-C, Line 4, the planned Wolgot-Pangyo Line (which will connect Songdo to Pangyo), and the planned Indeogwon-Dongtan Line, which will link up with GTX. This will turn Indeogwon into a "quadruple station area." Reflecting these expectations, the price of an 84-square-meter unit in Indeogwon Prugio El Centro surpassed the 1.5 billion won mark in March. Currently, some listings are being offered at up to 1.8 billion won.

Oversupply of New Builds and Locational Constraints: Housing Price Stagnation in Yangju and Uijeongbu

On the other hand, in the northern part of Gyeonggi Province, the positive effects of development are being reflected more slowly. Since the announcement of the implementation plan at the end of 2023, housing prices in Yangju and Uijeongbu have been flat. In particular, since December 2023, Yangju has been designated for four consecutive months as a "unsold apartment management area" by the Housing and Urban Guarantee Corporation (HUG). This is because the large number of new apartment complexes supplied in anticipation of the GTX-C boost failed to attract buyers due to construction delays and a sluggish local real estate market.

Near Deokjeong Station, a 84-square-meter unit in ePyeonhansesang Deokjeong Station Sky was sold last month for 410 million won. Since 2023, transactions have been fluctuating slightly up and down around the 400 million won level. At Uijeongbu Station, the most prominent complex, Uijeongbu Station Central Xi & Weave Castle, saw an 84-square-meter unit sold for 827 million won on April 3. However, this is lower than its peak price of 865 million won in 2024.

Experts analyze that the combination of construction delays on GTX-C and the locational constraints of northern Gyeonggi Province have dampened the increase in housing prices. Kwon Youngsun, head of the Real Estate Investment Advisory Center at Shinhan Bank, said, "In Chang-dong and Indeogwon, the upward trend in housing prices has accelerated due to a combination of spillover effects from price increases in areas like Nowon or Gwacheon after strong real estate regulations, and the positive impact of transportation developments. In contrast, in Yangju and Uijeongbu, the increase in new supply in recent years and locational disadvantages—such as being far from the Gangnam area—appear to have contributed to slower housing price growth."

However, experts anticipate that once construction is fully underway, the upward trend in housing prices could spread to the Yangju and Uijeongbu areas as well. Kwon Youngsun, head of the Real Estate Investment Advisory Center at Shinhan Bank, predicted, "Because it will take several years from groundbreaking to completion for GTX-C, the positive impact of improved transportation will be reflected in both the pre-sale market and the prices of nearby apartments with some time lag after full-scale construction begins."

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