[Report] Dasan Breaks Through Traffic Jams, 84㎡ '1 Billion Won Ceiling' Surpassed

Apartment view of Dasan New Town (Photo by Ryu Taemin)

[Asia Economy Reporter Ryu Tae-min] "Transportation is the most important thing. Since accessibility to Seoul is improving, it naturally becomes popular." (Representative of Public Real Estate Agency A in Dasan New Town, Gyeonggi)

On the afternoon of the 22nd, it took the reporter just over an hour to reach the central commercial area of Dasan New Town in Namyangju, Gyeonggi Province by taking an intercity bus from Jamsil Station in Seoul. Resident Kim (30) said, "During rush hour, the roads get congested, so it is common to leave home before 6 a.m."

Dasan New Town, developed east of Wangsucheon River in Guri City, has been inhabited for about three years, but like other new towns in the metropolitan area, it still suffers from poor transportation infrastructure, resulting in low accessibility to Seoul.

Dasan I-Park 84㎡ and Hillstate Dasan 85㎡ Surpass 1 Billion KRW

However, the recent rise in housing prices is notable even across the metropolitan area. Most apartments in the new town have completed occupancy, and some complexes are surpassing the prices of apartments on the outskirts of Seoul. According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, on the 5th of this month, Dasan I-Park 84㎡ (exclusive area) was traded at 1.04 billion KRW, marking the first time apartments under 85㎡ in Dasan New Town exceeded 1 billion KRW. On the 6th, nearby Hillstate Dasan 84㎡ also recorded a new high at 1.033 billion KRW. Considering that both complexes were traded in the mid-800 million KRW range as recently as July last year, prices have risen by about 200 million KRW in half a year.

Prices Jump 200 Million KRW in Half a Year... Nearby Complexes Also Surge Near 1 Billion KRW

Nearby complexes show similar price trends. Dasan Hanyang Sujain River Palace, Dasan I-Pyeonhan Sesang Xi, and Dasan Jayeon & Lotte Castle 84㎡ have also increased by 200 to 250 million KRW during the same period, approaching the 1 billion KRW mark.

The rapid rise in apartment prices in this area is explained by local real estate agencies as due to the expectation of improved accessibility to Seoul, which was previously considered a weakness, leading to a fast influx of population. A representative from Public Real Estate Agency B in the area explained, "Compared to Seoul, prices are relatively affordable, and with high expectations for improved transportation conditions, many young people, including newlyweds, are flocking here."

Expectations for Improved Seoul Accessibility with GTX-B and Extensions of Lines 8 and 9

In fact, the complexes driving the current housing prices in Dasan New Town are located within 500 meters radius around the planned Dasan Station (tentative name) on the Seoul subway extension line scheduled to open in 2023. Once Line 8 opens, commuting to Jamsil in Seoul will take only 25 minutes.

The metropolitan transportation improvement plan for the 3rd phase new towns in the metropolitan area, announced by the government at the end of last year, is also a factor boosting housing prices. The extension of Seoul Subway Line 9, which connects to the nearby Wangsu district, a 3rd phase new town, will pass through the Jigeum district within Dasan New Town, further improving access to the Gangnam area. Additionally, Dasan New Town will indirectly benefit from the metropolitan express railroad (GTX) Line B. A GTX B Line station is planned to be newly established at Byeollae Station, just one stop away from Dasan Station.

Park Won-gap, Senior Real Estate Specialist at KB Kookmin Bank, explained, "In the case of Dasan New Town, demand is increasing as accessibility to the city center is greatly enhanced by successive transportation developments," adding, "The high preference for newly built apartments is also a reason why the new town is gaining popularity."