Areas with Major Development Opportunities Are Rising

5.11 Measures and COVID Impact Highlight Areas with Solid Large-Scale Development Prospects
Promising Areas Show Resilience in Recession and Anticipate Price Increases as Development Plans Materialize

With the recently announced May 11 real estate measures strengthening resale restrictions and the ongoing uncertainty in the real estate market due to the coronavirus, areas with definite large-scale development prospects are gaining attention. These areas are fundamentally resilient to recessions and have bright outlooks as price increases can be expected during the process of concretizing future development projects.

For example, ‘Maegyo Station Prugio,’ which recorded the highest number of first-priority subscription applicants nationwide this year with 156,505 applications, gained popularity because the Maegyo Station area around the complex is set to transform into a large-scale branded district, and it is only one stop away from Suwon Station, where the GTX-C (planned) line will pass.

Areas with large-scale development prospects have also seen significant price increases. Dunchon Prugio in Gangdong-gu, Seoul, which was completed in 2010, experienced price growth following the opening of Line 9, considered a prime subway line in Seoul. The base floor sale price for a 59㎡ unit was 504.4 million KRW, but by August 2018, just before the opening of Line 9 Phase 3, it traded at 810 million KRW (11th floor), and in February this year, it recorded an actual transaction price of 920 million KRW (11th floor), showing a steep upward trend.

‘Dongdaemun Lotte Castle Noblesse’ in Dongdaemun-gu, Seoul, which was sold in 2015 and is considered a beneficiary of the GTX-B and C lines, had a sale price of 480 million KRW for a 59㎡A unit. After the preliminary feasibility study for the GTX-B line began, in November 2017, it traded at 640.18 million KRW (12th floor), and after the feasibility study passed in December 2019, it reached 1.143 billion KRW (15th floor). This represents a price increase of over 600 million KRW compared to the sale price.

Among the complexes scheduled for sale this year, it is worth paying attention to areas with large-scale development prospects such as those where GTX lines will dramatically improve transportation conditions, large parks will enhance residential comfort, or large-scale residential developments like redevelopment and reconstruction are underway.

Hyundai Engineering is currently selling ‘Hillstate Cheongnyangni The First,’ located at 620-56 and 60 Jeonnong-dong, Dongdaemun-gu, Seoul. The complex consists of 3 buildings, ranging from 5 basement floors to a maximum of 43 floors above ground, with units sized between 37 and 84㎡, totaling 486 units. As of the subscription application on May 27, all 486 units received 6,874 applications, resulting in an average competition rate of 14.14 to 1, with all types fully subscribed and contracts pending. The highest competition rate was 213 to 1 for the B Block 84㎡OF other application category. Cheongnyangni Station, where ‘Hillstate Cheongnyangni The First’ is located, is expected to become Seoul’s top transportation hub with a total of 10 lines, including the GTX-B and C lines, which passed the preliminary feasibility study, as well as the planned Gangbuk Transversal Line and Myeonmok Line. Nearby amenities include Lotte Department Store (Cheongnyangni branch), Lotte Mart (Cheongnyangni branch), Homeplus (Dongdaemun branch), Yakryeong Market, Gyeongdong Market, Cheongnyangni Wholesale Market, and Cheongnyangni Agricultural and Marine Products Market, all within walking distance, providing excellent living infrastructure.

The SK Construction and Hanjin Heavy Industries consortium will accept first-priority subscriptions on the 9th for ‘Bupyeong SK VIEW Haemoro,’ a housing redevelopment project in the northern area of Bugaeseo Elementary School in Bupyeong-gu, Incheon. Located at 145-10 Bugae-dong, Bupyeong-gu, Incheon, the complex will consist of 17 buildings ranging from 2 basement floors to 25 floors above ground, with units sized between 36 and 84㎡, totaling 1,559 households, of which 884 will be for general sale. It boasts a triple station area with walking access to Bupyeong Station, a transfer station for Subway Line 1, Incheon Subway Line 1, and the planned GTX-B line, as well as Bugae Station on Subway Line 1. Nearby schools include Bugaeseo Elementary School, Bupyeong Girls’ Middle School, Bugae High School, and Buhung High School. Residents can conveniently access the existing Bupyeong Station commercial district and the rich infrastructure of the Jung and Sangdong new towns in Bucheon.

Daewoo Engineering & Construction plans to launch ‘Giheung Prugio Forepis’ through the Yeongdeok Park special project in San 111-1, Yeongdeok-dong, Giheung-gu, Yongin, Gyeonggi Province, in June. The complex will consist of 6 buildings ranging from 4 basement floors to 31 floors above ground, with units sized between 59 and 84㎡, totaling 677 households. A bus stop serving dozens of routes is located right in front of the complex, and commuting to Seoul Gangnam is possible within one stop. The Giheung Station on the Bundang Line is also nearby, and with the planned extension of the Yongin Line to Gwanggyo (scheduled to open in 2025), a new station (tentatively named Station 101) is planned near the complex, improving commuting conditions. The nearby road network, including the Gyeongbu, Yeongdong, and Yongseo Expressways, is well established, facilitating easy travel to Seoul and the metropolitan area. Within a 2 km radius, large malls such as Lotte Mart Singal Branch, Hanaro Mart Giheung Branch, AK& Giheung, and Lotte Cinema Yongin Giheung Branch provide convenient shopping and cultural life.

Daewoo Industrial Development will accept first-priority subscriptions on the 9th for ‘Ian Central Fore Jangyu,’ located at 903 Sammun-dong, Gimhae, Gyeongsangnam-do. The complex will consist of 17 buildings ranging from 3 basement floors to 24 floors above ground, with units sized between 59 and 84㎡, totaling 1,347 households, of which 336 will be for general sale. The complex has excellent access to wide-area transportation via Daecheong-ro in front and nearby Geumgwan-daero and Namhae Expressway, facilitating travel to Changwon and Busan. Additionally, the double-track railway connecting Busan Bujeon, Gimhae, and Masan is scheduled to open in 2021, further improving transportation. Moreover, the ‘Jangyu Passenger Terminal,’ a long-awaited project for residents of the Jangyu area in Gimhae, is under construction. The terminal will be a building with 3 basement floors and 20 floors above ground, with a total floor area of 80,346㎡. Floors B1 to 4 will serve as terminal facilities accommodating 24 buses and 770 cars, while floors 3 to 20 will house commercial facilities such as a multiplex cinema, large supermarket, hospital, and officetels.

HDC Hyundai Development Company plans to sell ‘Ulsan Taehwagang I-Park’ in Seongnam-dong 196-21, Jung-gu, Ulsan Metropolitan City. The complex is an apartel with 377 units sized 31 and 59㎡, ranging from 4 basement floors to 35 floors above ground. Facing the Taehwa River, the complex offers excellent views, and shopping and cultural facilities such as NewCore Outlet, Lotte Cinema, and Megabox are within walking distance, providing convenient living. The Ulsan Tram Line 2, connecting Songjeong Station and Yaeum Intersection, is under development nearby, and four additional lines are planned near the project site, further improving transportation conditions.

SD Partners (developer) is currently selling ‘Songdo Broad Square’ in the Songdo International City area of Incheon. Located at C6-1 Block of the International Business District in Songdo-dong 29-8, Yeonsu-gu, Incheon, ‘Songdo Broad Square’ consists of 3 buildings from 1 to 4 floors above ground, with a total floor area of 93,383.49㎡. Nearby, the GTX-B Songdo Station, which passed the preliminary feasibility study last year, is planned. Using this line, it will be possible to reach Seoul Station within 20 minutes. Additionally, the new Incheon Port International Passenger Terminal, combining the 1st and 2nd international passenger terminals, is scheduled to open this month, expected to revitalize the commercial district.

Hyundai Engineering plans to sell ‘Hyundai Terra Tower Gamil,’ located on Block 4 of the self-sufficient facility site in Gamil District, in June. The building will range from 4 basement floors to 8 floors above ground, with a total floor area of approximately 57,000㎡, comprising knowledge industry centers, commercial facilities, and sports facilities. Gamil District, part of the Songpa living area, will have the planned Gamil Station extension connecting to Ogeum Station on Line 3, and various transportation benefits are expected due to the nearby development of the 3rd phase Gyosan New Town. The area has excellent transportation convenience with Gamil Circular Road, Sinwoosil Road, and nearby Seo Hanam IC and Hanam IC. The knowledge industry center features specialized designs such as 466 parking spaces, which is 219% of the legal requirement, and high floor heights (4.5 to 5 meters). The commercial facilities are located along the main road, securing fixed demand from tenants, nearby companies, and residential demand in Gamil District.

- List of complexes with large-scale development prospects scheduled