Indeogwon Houses Priced at 2 Billion Won... GTX-Driven Blind Surge in Housing Prices

Interest Grows Over Additional Station Selection on GTX-C Line
Expectations Rise for Indeogwon Station, Uiwang Station
Nearby Apartment Prices Soar... Asks Jump by Billions
"Long-term Housing Price Increase If Additional Station Confirmed"

[Asia Economy Reporter Moon Jiwon] The metropolitan area wide express railroad (GTX) is becoming a trigger for the already unstable housing prices. As the selection of the preferred bidder for the C line, known as the golden route, approaches, apartment prices are soaring mainly in areas with high expectations for additional station selections. In particular, in some complexes near Indeogwon Station, actual transaction prices have risen by about 100 million KRW within a few months, and sellers have raised asking prices, with 84㎡ (exclusive area) listings soaring up to 2 billion KRW. In the market, concerns have been raised that a bubble has formed as 'blind investments' continue despite the route not yet being finalized.

According to the industry on the 16th, housing prices around Seoul Seongdong-gu (Wangsimni Station), and Gyeonggi An-yang and Uiwang (Indeogwon Station, Uiwang Station), which are being mentioned as additional station candidates for the GTX-C line connecting Suwon and Uijeongbu in Gyeonggi Province, are rapidly rising. In particular, complexes located within walking distance of Indeogwon Station on Seoul Subway Line 4 have seen asking prices increase by several hundred million KRW in recent months. For example, an 84.98㎡ unit at Indeogwon Prugio El Centro in Poil-dong, Uiwang-si, was traded for 1.63 billion KRW on the 6th, up 100 million KRW from 1.53 billion KRW in April. The current asking price has risen to over 1.7 billion KRW, with listings up to 2 billion KRW appearing. A representative from real estate agency A in the area said, "As the expectation that GTX might be built spreads among residents, asking prices continue to rise."

At Poil Xi 1st Complex 84.98㎡ in Naeson-dong, Uiwang-si, a new record was set at the end of last month with a transaction price of 1.165 billion KRW. This is 212.5 million KRW higher than the actual transaction price of 952.5 million KRW in January this year. Among some local residents, there is also an expectation that "if the additional GTX station is confirmed, prices will rise by more than 2 billion KRW." In addition, areas such as Dongan-gu in An-yang City have recently seen concentrated buying demand, causing apartment prices to rise sharply. According to the Korea Real Estate Board, Dongan-gu saw apartment prices rise by 0.94% last week, showing the highest increase in Gyeonggi Province except for Siheung-si (0.96%).

The rapid rise in housing prices near these candidate stations is due to the imminent selection of the preferred bidder for the GTX-C line. Hyundai Construction, GS Construction, and POSCO Construction have each formed consortia to participate in the construction bidding for this line, and the results are expected to be announced as early as this week. The most focused point ahead of the announcement is which stations will be additionally selected beyond the 10 stations included in the existing GTX-C basic plan. Currently, the three consortia have proposed Wangsimni Station, Indeogwon Station, Uiwang Station, and Sangnoksu Station, among others, and it is highly likely that about three stations will be finally included as additional stations.

Lee Eun-hyung, senior researcher at the Korea Construction Policy Institute, said, "If Indeogwon Station is selected as an additional station, accessibility to downtown Seoul will improve, so considering the recent real estate market atmosphere, a rise of about 100 million KRW is not a big deal. However, the price surge is limited to specific complexes, and since housing supply in the vicinity may increase once the station is built, investments should be made cautiously."