Eunpyeong~Gwanak Private Investment Feasibility Passed
Benefits for Sillim New Town and Saejeol Station Area
[Asia Economy Reporter Donghyun Choi] The 'Seobu Line Light Rail Transit' private investment project, connecting the southwestern and northwestern areas of Seoul, has passed the private investment feasibility study, causing the real estate market near the beneficiary areas to stir.
According to industry sources on the 23rd, the Seobu Line Light Rail Transit private investment project passed the private investment feasibility study conducted by the Korea Development Institute Public Investment Management Center (KDI PIMAC) the day before. It has been 20 years since the Seobu Line development plan was first announced in Seoul's mid-term transportation maintenance plan established in 2000. Mayor Park Won-soon also held a policy briefing session for the early start of the Seobu Line the day before, stating, "The reason Gangnam developed was ultimately because the subway was well established," raising expectations for the development of the relatively underdeveloped southwestern and northwestern areas of Seoul.
The real estate market has also started looking for beneficiary areas. Since the Seobu Line Light Rail Transit connects Saejeol Station (Line 6) in Eunpyeong-gu and Seoul National University Station (Line 2) in Gwanak-gu, the dominant opinion is that it is a positive factor for relatively undervalued reconstruction and redevelopment projects or newly built apartments in these areas.
The first area mentioned is the Sillim New Town redevelopment site, which is being developed as a large complex with about 5,000 households. This area is expected to have three Seoul light rail lines: the Sillim Line, Nangok Line, and Seobu Line. The redevelopment project, divided into Zones 1, 2, and 3, is progressing smoothly. Zone 3 obtained management disposition approval, a key milestone in the project, on the 10th. Daewoo Construction plans to build an apartment complex with 8 buildings and 571 households in this area. Zone 2 plans to hold a management disposition general meeting as soon as the state-owned land purchase work is completed. Zone 2 will be jointly constructed by Daewoo Construction and Lotte Construction and will consist of 1,489 households. Zone 1, the largest with 3,836 households, received approval for the establishment of the association in November last year and was recently selected as a target site for Seoul City's urban architecture innovation plan, accelerating the project.
The prices of new apartments around Sillim New Town have already reflected some of the transportation development benefits, forming premiums worth several hundred million won. The 84㎡ (exclusive area) unit of 'e-Pyeonhansesang Seoul National University Entrance' in Bongcheon-dong, which moved in last June, was sold for 1.18 billion won in March. Considering that the sale price for that area was in the mid-500 million to early 600 million won range, this is more than double the price. In April, a 59㎡ unit was also traded for 950 million won. A representative from real estate agency A in Sillim-dong said, "The transportation benefits overlapping in the previously poor transportation environment around Sillim New Town have steadily increased prices," adding, "After the announcement of the Seobu Line Light Rail Transit project passing, dozens of inquiries about available properties came in immediately."
Apartments around Saejeol Station in Eunpyeong-gu, the starting point of the Seobu Line, are also cited as another beneficiary area. About 800 meters east in a straight line from Saejeol Station, apartment complexes with about 10,000 households are gathered around Baekryeonsan Mountain. For example, the 84㎡ unit of 'Baekryeonsan Hillstate 4th Phase,' which moved in in 2018, is priced in the early 900 million won range. The 84㎡ pre-sale price of the nearby new 'Hillstate Hong Eun Forest,' scheduled to move in November 2022, was around 658 million to 687 million won.
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