[Visiting the 3rd New Town] 20 Minutes by Bus from Songpa to Hanam Gyosan... "Jeonse Demand is Already Pouring In"

<2> Hanam Gyosan District

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A view of Hanam Gyosan District, where large and small factories and warehouses have sprung up like mushrooms. It is a new town located in a basin surrounded by mountains on three sides, except the north. (Provided by LH)

With Bucheon Daejang District designated as a public housing district on the 25th, the government’s projects for the five 3rd-generation new towns in the Seoul metropolitan area, whose candidate sites were finalized last May, have entered the main track.

The total housing supply volume from the 3rd-generation new towns designated as ▲Namyangju Wangsuk ▲Goyang Changneung ▲Hanam Gyosan ▲Incheon Gyeyang ▲Bucheon Daejang amounts to 173,000 households. Unlike the 2nd-generation new towns, which included quasi-Gangnam-level new towns like Pangyo and Wirye, most of the 3rd-generation new towns are located near the Seoul city boundary, earning high marks for their excellent locations.

In particular, the government plans to implement a 'pre-application system' that accepts applications before the main sale for some new towns with early district designations starting from the end of next year, creating an atmosphere where homebuyers are already strategizing their applications. However, since the projects are just beginning, differences in demand preferences are expected to emerge for each new town as major issues such as transportation measures and land compensation are addressed.

Asia Economy examines the locations, atmospheres, prospects, and challenges of the five 3rd-generation new towns through vivid on-site coverage.

[Hanam=Asia Economy Reporter Lee Chunhee] "Among the 3rd-generation new towns, this is the best location. It only takes two or three subway stops to reach Songpa. We receive many inquiries because of the excellent location." (Representative of real estate agency A in Gyosan-dong, Hanam City, Gyeonggi Province)

On the 26th, the planned site of Hanam Gyosan District in Gyeonggi Province was closer to Seoul than expected. It took only about 20 minutes by bus from Olympic Park Station on Seoul Subway Line 5 to reach the central area of the planned district near Gwangju Hyanggyo. The area around the planned site was lined with small factories and restaurants, but buildings over four stories were hard to find.

The area around Chungung-dong in Hanam Gyosan District, designated as the 3rd new town. (Photo by Lee Chunhee)

◆10 km to Jamsil, best location among 3rd-generation new towns= The Gyosan District, spanning 6.49 million square meters around Gyosan, Chungung, and Cheonhyeon-dong in Hanam City, will be developed into a 32,000-household complex, smaller than Namyangju Wangsuk (11.34 million square meters, 66,000 households) or Goyang Changneung (8.13 million square meters, 38,000 households), which are also 3rd-generation new towns.

However, in terms of location, it receives the highest evaluation among the five new towns due to its excellent access to the Gangnam area. It is only about 7 km to Olympic Park in Songpa-gu, Seoul, and about 10 km to Jamsil Station. Moreover, the government is considering building a metropolitan railway network that directly connects to Gangnam instead of extending Line 3, which originally ended at Ogeum Station, to the district, raising expectations that it will effectively become a Gangnam-area new town. A representative from real estate agency B in Chungung-dong said, "There is interest from local tenants in apartment sale schedules due to expectations that the urban railway might directly connect to Jamsil and other areas."

Another attraction of Gyosan District is that it will form a large residential belt with surrounding new towns and housing districts. To the north lies Misa Riverside City, a similarly sized new town with 38,000 households, and toward the Seoul city boundary, the 14,000-household Gam-il District is under development. Combined, these three districts will form a mammoth new town cluster of 84,000 households.

Perspective view of Hanam Gyosan District in the 3rd New Town (Provided by the Ministry of Land, Infrastructure and Transport)

◆Rapid move-ins ahead of pre-application at the end of next year= The market in this area is already heating up. Following the government's extension of the residency requirement to two years for first-priority qualification in speculative overheated districts in Seoul and Hanam City, and the announcement of early supply plans through pre-application starting as early as next year, there is a growing trend of move-in demand to secure application eligibility.

As a result, apartment lease prices in the surrounding area are rising sharply. According to the Korea Real Estate Board’s weekly apartment lease price index, as of the 18th, lease prices in Hanam City rose 0.44% compared to the previous week, the highest increase among cities, counties, and districts in the metropolitan area. A Korea Real Estate Board official explained, "The rise was mainly in mid- to low-priced complexes in Deokpung, Sinjang, and Pungsan-dong, influenced by demand for 3rd-generation new town applications."

Prices are expected to be somewhat lower than those in the nearby Misa Riverside City along the Han River, which has a better location. Currently, the 85㎡ (exclusive area) apartments in Misa Riverside New Town range from about 850 million KRW to over 1 billion KRW.

The biggest advantage of Gyosan New Town is predicted to be its natural environment. Unlike most other 3rd-generation new towns built on plains near rivers, Gyosan District is a basin surrounded by mountains. It is enclosed by Namhan Mountain and Geumam Mountain, opening only toward the northern Hanam city area.

The government plans to leverage this location by establishing a green axis centered on Deokpung Stream running through the district’s center, placing low-rise buildings and social overhead capital (SOC) facilities centrally, and building apartments at the foot of the mountains in a form that harmonizes with the natural surroundings. Since the government has already declared eco-friendly development as the direction for 3rd-generation new towns, the large-scale green space creation is expected to be a clear advantage in terms of residential environment.

◆Insufficient road network is a drawback= However, the road network is relatively insufficient. This is a concern that must be addressed for new towns where commuting to Seoul is essential. Currently, the only roads leading into Gyosan District are Seo Hanam-ro, which connects to Seoul, and Saemjae-ro and Daeseong-ro to the north. While the basin terrain was an advantage for the residential environment, it is the biggest obstacle for transportation.

On the 21st, the Ministry of Land, Infrastructure and Transport announced the Gyosan District’s metropolitan transportation improvement plan, the first for a 3rd-generation new town, covering seven public transportation expansion measures and thirteen road traffic improvement measures. However, among these, the only new roads directly connecting Gyosan District to the outside are the Gaeksan Tunnel and the road connecting to Gam-il District. Considering that Gam-il District lies between Gyosan District and Seoul, experts judge that this is insufficient to accommodate traffic volume adequately.

Lee Eunhyung, senior researcher at the Korea Construction Policy Institute, pointed out, "As development expands outward, new residential complexes will be built along the new transportation networks, worsening traffic congestion over time. Besides the Hanam-Songpa urban railway, additional transportation network expansion plans need to be considered."