[Asia Economy Reporter Donghyun Choi] The real estate fever in Geoyeo-dong and Macheon-dong, Songpa-gu, Seoul, is heating up significantly. Last year, as the New Town move-ins began in earnest, the area has been reborn as a trendy large-scale complex of newly built apartments, while also sharing the benefits of surrounding areas such as Jamsil and Wirye.
According to industry sources on the 16th, Geoyeo and Macheon New Towns are transforming into a "mini new city" with nearly 20,000 households. Covering an area of 1,043,843㎡, most of the nine districts?including three in Geoyeo-dong and six in Macheon-dong (including Macheon Market)?are being developed into large complexes with 1,000 to 2,000 households each. In particular, through redevelopment in Macheon-dong, the face of the New Town, the area around Macheon Station on Line 5, is being refurbished, and the restoration project of Seongnaecheon Stream is also being actively pursued.
Macheon Station, located at the center of the New Town, is situated in Macheon 2 District. Currently, Macheon 2 District, which is seeking re-designation approval, is planned to be developed as a mixed-use complex with office, commercial, and residential functions. Local real estate officials expect that the establishment of a neat new commercial district around the station will greatly improve living infrastructure. Additionally, there is a high possibility of providing an excellent educational environment as a school district is forming. Around Ahyeon New Town and Bukahyeon New Town, each with about 10,000 households, famous academies such as Jongno Academy have relocated their main branches, creating a school district.
The Macheon 1, 3, and 4 Districts surrounding Macheon 2 District are expected to directly benefit in the future. These three districts have completed stages such as association establishment approval (Districts 3 and 4) and district designation (District 1). The redevelopment in Macheon 4 District, which is progressing the fastest, is attracting attention with land shares trading at around 100 million KRW per 3.3㎡.
The Seongnaecheon Stream restoration project, currently underway, will also pass through the Macheon-dong redevelopment area. The restoration aims to create a waterfront ecological axis connecting the Han River, Seongnaecheon, and Namhansan, and is planned to be promoted simultaneously with the New Town project due to its location. Recently, waterfront parks such as Lake Park and Canal Walk have become established conditions for popular new cities, so once the Seongnaecheon restoration is completed, the area is expected to take on the true form of a "mini new city" reminiscent of a new town residential district.
Geoyeo and Macheon New Towns benefit not only from their location near Line 5 stations (Macheon Station, Geoyeo Station) but also from additional transportation advantages. First, with the Line 5 direct connection project included in the 2nd Seoul Metropolitan Subway Network Plan, connecting Banghwa and Hanam lines, the interval between trains on Line 5 will be reduced to about half of the current level. Considering that transfers to Lines 3 and 9 are also possible via Line 5, it will become even more convenient to use Seoul's "golden line." Consequently, the three major business districts in Seoul?CBD (Central Business District), YBD (Yeouido Business District), and GBD (Gangnam Business District)?will become more accessible.
The Wirye Line is also being promoted as an above-ground tram line connecting Macheon Station on Line 5 with Bokjeong Station, a double station on Lines 8 and Bundang Line, and the planned new Wirye Station on Line 8. The Wirye Line, which will pass through Wirye New Town, is scheduled to open as early as 2024, enabling residents of Geoyeo and Macheon New Towns to easily access Lines 8 and Bundang Line via tram, in addition to the existing walkable Line 5.
Road traffic is also improving. It is easy to access the Metropolitan Area 1st Ring Expressway and Gyeongbu Expressway via Seo Hanam IC and Songpa IC. Additionally, the Seoul-Sejong Expressway and Seoul-Yangpyeong Expressway toward Gam-il New Town are scheduled to open, and projects such as the northern road of Wirye New Town district, new roads between Gam-il and Choi, and expansion connecting Wiryesung-gil are underway.
With such a well-established transportation network, Macheon Station is expected to serve as a central hub where populations from Wirye New Town and Gam-il New Town will concentrate in the future.
Large-scale development benefits are also continuing. Following the development of the legal town in Garak-dong and Munjeong-dong, located just one or two stops away, projects such as the relocation of Seongdong Detention Center and modernization of Garak Market are underway. The Munjeong Legal Town, which is emerging as a new office district, is being developed as a "business park" combining futuristic advanced industries and legal town functions. After the relocation of the Seoul Eastern District Court and Seoul Eastern District Prosecutors' Office, private companies have been moving into large knowledge industry centers, resulting in a floating and resident population of about 100,000 visiting the court and prosecutor's office. On the site of the Seongdong Detention Center (84,432㎡), which was relocated in 2017, a complex business startup space will be created on a 9,263㎡ office facility site. Furthermore, the Garak Market modernization project, with an investment of about 1 trillion KRW, gained momentum last October with stakeholder consultations. Once the Seongdong Detention Center development and Garak Market modernization projects are completed, residential preference is expected to increase significantly.
In addition, unprecedented development projects are continuing in the southeastern Gangnam area, marking the beginning of the "eastward advance" of Gangnam. The most significant development in this area is the groundbreaking of the Samsung-dong Global Business Center (GBC), with a project cost of 2.6 trillion KRW, and the "International Exchange Complex District" project, including the MICE development plan for Jamsil Sports Complex. Especially, the GBC construction project, which began last year, is expected to create 1.25 million jobs and generate an economic effect of 268 trillion KRW. As the economic and commercial center axis, which was centered around Gangnam Station, shifts to Samsung Station and Sports Complex Station, the Songpa area including Jamsil is emerging as a beneficiary.
Meanwhile, the area around Suseo Station in Gangnam-gu is undergoing the largest station-area development project in Korea. The public housing district, covering 386,664㎡, will include various office, distribution, commercial, and residential facilities, providing diverse jobs and living infrastructure. Moreover, the Suseo Station area is located just across the Tancheon Stream, close to Geoyeo and Macheon New Towns, and is conveniently accessible by subway via Lines 3 and Bundang Line stopping at Suseo Station.
Despite the concentration of various benefits, Geoyeo and Macheon New Towns have only recently begun to attract attention. In September 2019, the "Songpa Signature Lotte Castle (1,945 households)" created through the Geoyeo 2-1 redevelopment attracted 23,565 applicants for 429 units, gaining fame. This complex recorded a competition rate as high as 420 to 1 amid a scarcity of new supply due to government redevelopment regulations. The delay in the project caused by the financial crisis after the New Town designation in December 2005 turned out to be a blessing in disguise. The sale rights for this complex are now quoted at about twice the pre-sale price, along with the "e-Pyeonhansesang Songpa Park Central" in Geoyeo 2-2 redevelopment district.
Expectations for the redevelopment districts in Macheon-dong, which will follow the two districts in Geoyeo-dong, are even higher. It is known that many top-tier construction companies are competing to win contracts for the Geoyeo and Macheon New Town projects. The redevelopment districts in Macheon-dong are being promoted as large complexes with over 1,000 households each, and their location is verified as the only New Town project in the three Gangnam districts.
A construction industry official said, "From the perspective of construction companies, winning major New Town projects in Seoul is not only about profit but also a promotional tool to enhance their brand value, so they are fighting hard to secure construction rights." He added, "As the only New Town in the Gangnam area, Geoyeo and Macheon New Towns have a high potential to become first-class residential areas representing Seoul's redevelopment districts, so only major brands with competitiveness will be able to enter in the future."
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