[Visiting 3rd Generation New Towns] "When Residential and Industrial Complexes Are Completed, Tens of Thousands Will Commute, Subway Essential"

<5>Incheon Gyeyang District

Nearby Station-Area Apartments Rise by 100 Million Won After New Town Announcement... Land Prices Also Stirred
S-BRT, Mixed Expectations... Residents United in Saying "We Want Rail"
"Success Depends on Half of Available Area Being 'Self-Sufficient Land'... Land Compensation Also in Focus"

[Incheon=Asia Economy Reporter Kim Yuri] "The Super Bus Rapid Transit (S-BRT) doesn't really resonate with us. What residents want the most is the railway. It even changes housing prices." (Representative of A Real Estate Agency in Dongyang-dong, Incheon)

Last weekend, about a 10-minute bus ride from Gyeyang Station, a transfer station for the Incheon Airport Railroad and Incheon Subway Line 1, beyond the apartment complexes, fields and farmlands stretched out. This is part of the Incheon Gyeyang District, spanning 3.35 million square meters across Gyulhyeon, Dongyang, Bakchon, Byeongbang, and Sangya-dong areas in Gyeyang-gu, Incheon. Among the five 3rd phase new towns in the metropolitan area, Gyeyang District is the smallest and mostly consists of farmland, so land compensation is expected to begin earliest in November. About 17,000 housing units will be built, accommodating approximately 40,000 residents.

◆Nearby Station-Area Apartments Jump 100 Million KRW... Land Prices Also Stirred= Gyeyang District was announced as a new town site in December 2018 and officially designated last October. The district plan will be established within this year, and sales are expected to begin in earnest as early as next year.

Within a year and a half after the new town announcement, apartment sale prices near stations increased by over 100 million KRW. In April, 84㎡ units of Gyeyang Hanyang Soojain in Bakchon-dong were traded at 475 million to 485 million KRW, and earlier in February, 59㎡ units were sold for 378 million KRW. A representative of nearby B Real Estate said, "The complex is right in front of Bakchon Station, and with expectations of transportation benefits such as the S-BRT connecting to Gimpo Airport, prices have risen. However, transactions have been quiet since last month." Hanjin Haemoro in Dongyang-dong, adjacent to Gyeyang District, also saw prices rise about 10% after the 3rd phase new town announcement. Currently, 59㎡ units sell for 270 million to 300 million KRW, with jeonse (long-term deposit lease) prices around 220 million to 240 million KRW.

Interest in the 3rd phase new town subscription is also high. A representative of C Real Estate in Bakchon-dong said, "Inquiries about subscriptions are steady," adding, "Some homeowners are putting their houses on the market to qualify as non-homeowners."

Nearby land prices have also surged significantly since the new town announcement. According to local real estate offices, prices generally rose 70-80%, and in some cases more than doubled. A representative of D Real Estate in Dongyang-dong explained, "Farmland in the nearby greenbelt area, which used to be priced at 200,000 to 300,000 KRW per 3.3㎡, is now being offered at 700,000 to 800,000 KRW."

◆"Railway Over S-BRT"= The core of the transportation plan for Gyeyang District is the 'S-BRT.' S-BRT is a bus system that operates without stopping at intersections by using underground roads and bridges. It will connect the district to Gimpo Airport Station, served by Seoul Subway Lines 5 and 9 and the Airport Railroad, and link to nearby Bakchon Station. To the south, it will connect to Bucheon Sports Complex Station, where Seoul Subway Line 7, the GTX B Line, and the Daegok-Sosa Line are planned.

However, residents insist on the need for a new subway line. Local governments also emphasize the necessity of additional transportation measures such as extending Line 9. With the completion of Gyeyang Technovalley and Seoun Industrial Complex, about 100,000 jobs will be created, and road expansions alone cannot handle the transportation demand. A representative of A Real Estate in Dongyang-dong said, "Nearly half of the people here commute to Seoul," adding, "A subway with excellent accessibility is necessary."

◆"Success Depends on Half of Usable Area Being 'Self-Sufficient Land'="b> The Ministry of Land, Infrastructure and Transport plans to develop this area into two axes: an urban-type advanced industrial hub and a residential complex close to workplaces. A corporate belt linking Bucheon Daejang and Seoul Magok District will be created. To this end, about 900,000㎡, or 49% of the district's usable area, will be designated as self-sufficient land. This is 1.4 times the size of Pangyo 1st Technovalley, emphasizing self-sufficiency given the district's scale. Two-thirds of the self-sufficient land, about 600,000㎡, will be designated as an urban advanced industrial complex, and the southern self-sufficient land will be developed in connection with Seoun 1 and 2 Industrial Complexes.

Industry insiders say the key will be which companies and how many are attracted to this self-sufficient land. Some suggest the possibility of absorbing factories scattered around Gimpo. Kim Seonghwan, Deputy Researcher at the Korea Construction Industry Research Institute, said, "Pangyo succeeded as a self-sufficient city by creating an IT industrial complex and attracting companies, but whether such attraction will happen in Gyeyang District is the key to success."