'Changneung New Town Effect'... Goyang Deokyang-gu Surpasses Ilsan Housing Prices

[Asia Economy Reporter Donghyun Choi] The real estate market landscape in Goyang City has been overturned just one year after Deokyang-gu Changneung District was designated as the 3rd New Town. While apartment prices in Ilsan remain stagnant, Deokyang-gu has taken the lead in apartment prices due to the influence of the Changneung District and the newly established Goyang Line.

On the 3rd, according to an analysis of the apartment price trends from KB Real Estate Live On by the real estate information provider Economy Man Lab, the average apartment sale price per 3.3㎡ in Deokyang-gu last month was 13.775 million KRW, the highest among the autonomous districts of Goyang City. The prices per 3.3㎡ in Ilsan Dong-gu and Ilsan Seo-gu were 13.606 million KRW and 12.669 million KRW, respectively. This is the first time since April 2013, when KB Real Estate Live On began compiling related statistics, that Deokyang-gu has surpassed Ilsan Dong-gu and Ilsan Seo-gu in housing prices.

As recently as January last year, the average apartment sale prices per 3.3㎡ in Ilsan Dong-gu, Ilsan Seo-gu, and Deokyang-gu were 13.686 million KRW, 12.779 million KRW, and 13.226 million KRW, respectively, with Ilsan Dong-gu having the highest apartment prices in Goyang City. However, due to the designation of Changneung New Town in May last year and the establishment of the Goyang Line, apartment prices in Deokyang-gu have shown a steady upward trend, while Ilsan has experienced a decline, reversing the rankings.

In fact, recent actual transaction prices of apartments in Deokyang-gu are on the rise. The ‘Seojeong Village Complex 6’ 140㎡ (exclusive area) located in Haengsin-dong was around 558 million KRW in May last year but was transacted at 700 million KRW last month, rising by 142 million KRW in just one year. The ‘Muwon Village Complex 5’ 101㎡ in Haengsin-dong was also transacted at 510 million KRW last month. Compared to the 400 million KRW transaction in May last year, this represents an increase of 110 million KRW over one year.

Oh Dae-yeol, Research Team Leader at Economy Man Lab, forecasted, "As the government accelerates the development policy for the 3rd New Town and metropolitan transportation measures, the value of Deokyang-gu will increase further with the newly established Goyang Line."