Rising Excitement Amid Yongsan Station Area Development Project
With the confirmation of the development plan for the "Gangbuk version of COEX," equipped with an international conference center, office facilities, and hotels right next to Seoul Station, the downtown real estate market is showing signs of excitement. The atmosphere is intensifying with expectations for a renaissance of the old downtown area, coinciding with the massive Yongsan Station area development project.
According to industry sources on the 30th, Hanwha Construction, selected as the preferred negotiator in 2019, will begin full-scale development procedures aiming for construction to start in 2022 for the "Seoul Station Northern Station Area Development Project." This project involves the complex development of idle railway land around 122 Bongnae-dong 2-ga, Jung-gu, behind Seoul Station, linked with Seoul Station. It is a mega project with a total budget of about 2 trillion KRW. The development will feature five buildings up to 40 stories high, including MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities at an international conference level, hotels, retail, and office spaces, establishing a landmark around Seoul Station.
Seoul City plans to use the 220 billion KRW public contribution fee paid by private developers in exchange for regulatory relaxation during the development to create new pedestrian paths connecting Seoul-ro 7017, Seoul Station Plaza, and Seosomun History Park, as well as new parks. Once the Yongsan development also gets on track, it is expected to jointly drive the transformation of the old downtown area along with the "Gangbuk version of COEX" project. Seoul City intends to allocate part of the public contribution fees secured from the Northern Station Area development project to the Seoul Station?Yongsan Station undergrounding project.
The real estate market in this area cannot hide its excitement over the "Gangbuk COEX" development. Mr. A, a representative from a real estate agency in Jungnim-dong, said, "Compared to its location in the heart of Seoul, the surrounding environment felt somewhat outdated," adding, "With the Seoul Station Northern Station Area development, the environment will be improved, and nearby apartment prices are expected to rise." There is also a learning effect from the past when the construction of Samsung Town in Seocho-dong and the Samsung Global Business Center (GBC) in Samseong-dong caused nearby real estate to stir. Last year, as the GBC broke ground, apartment prices in Cheongdam-dong and Samseong-dong continued to hit record highs.
The Seoul Station Northern Station Area development project is expected to act as a positive factor for price increases in adjacent areas such as Jungnim-dong, Malli-dong, Ahyeon-dong, Cheongpa-dong in Yongsan-gu, and Dongja-dong. Professor Seo Jin-hyung of Gyeongin Women's University (President of the Korea Real Estate Society) said, "When a landmark is established in the city center, the location value rises further and has a significant ripple effect on nearby areas," adding, "(Due to redevelopment) the regional environment itself improves, which is expected to induce an increase in real estate values in areas like Jungnim-dong, Ahyeon-dong, and Yongsan-gu."
Hanwha Construction, which will be in charge of this Seoul Station station area development project, has been prominent in large-scale complex development projects such as MICE (Meetings, Incentives, Conferences, and Exhibitions) complexes and station area developments. A Hanwha Construction official said, "We plan to complete the project by pooling the capabilities of Hanwha Group affiliates to match the location and status as a national gateway," adding, "We will also actively contribute to revitalizing the local economy."
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