Ulleung-gun Land Prices Rise 6.07% on Airport Expectations
Meanwhile, Changwon, Ulsan, and Others Fall Amid 'Economic Recession' Impact
[Asia Economy Reporter Moon Jiwon] Amid government regulations causing the land price growth rate to hit its lowest point in six years, areas such as Hanam and Gwacheon in Gyeonggi Province have still seen significant increases in land prices due to successive positive factors.
According to the Ministry of Land, Infrastructure and Transport's '2019 Annual Nationwide Land Price Change Rate' data released on the 28th, the region with the highest land price increase rate among cities, counties, and districts nationwide was Hanam City in Gyeonggi Province. The increase rate was 6.90%, significantly surpassing the national average of 3.92%.
In Hanam City, expectations stemming from the development of the 3rd New Town influenced the rise. The 3rd New Town is planned to be developed as a self-sufficient city combining residential and job opportunities, relatively close to Seoul, so prices are expected to continue rising for the time being. The extension of Seoul Subway Line 5 is also cited as a factor behind the land price increase. The Line 5 Hanam extension is considered one of the 'prime routes' in the real estate industry. The section from Sangildong Station to Hanam Pungsan Station (4.7 km) opened in April this year, and it is scheduled to be extended to Hanam Geomdansan Station by the end of the year.
Gwacheon City in Gyeonggi Province, which includes the Gwacheon Knowledge Information Town, also saw land prices rise by 6.32% compared to the previous year. Land prices in Suseong District, Daegu, rose by 6.53% last year, ranking second highest nationwide. This is analyzed to be due to expectations for improved residential conditions from redevelopment and reconstruction projects underway in areas such as Manchon-dong and Jung-dong, as well as sustained demand in major school districts.
Additionally, Cheoin District in Yongin City, Gyeonggi Province, saw land prices increase by 6.20% due to expectations surrounding the establishment of the SK Hynix semiconductor cluster and the development of the Seoul-Sejong Expressway.
Ulleung County in Gyeongbuk Province experienced a 6.07% rise in land prices influenced by the Ulleung Airport development project, scheduled for completion in 2025. Once Ulleung Airport is established, allowing 50-seat small aircraft to travel between Seoul and Ulleung Island, travel time is expected to be reduced to about 1 hour and 30 minutes, and the number of tourists, currently around 400,000 annually, is projected to increase to 1 million.
On the other hand, land prices fell significantly in areas such as Seongsan District (-1.99%) and Uichang District (-1.90%) in Changwon City, Gyeongnam Province, Dong District (-1.85%) in Ulsan City, Seogwipo City (-1.81%), and Jeju City (-1.74%) in Jeju Province. In Changwon and Ulsan, population outflow and decreased demand for housing and commercial properties due to economic recession had an impact. In Jeju Province, sluggish progress in the Second Airport development project and a contraction in investment demand appear to have driven land prices down.
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