[Asia Economy Reporter Jo Gang-wook] As large-scale development projects in the northeastern area of Seoul, which had relatively lagged in development, are getting back on track with the resumption of the Changdong Private Station Development Project after 11 years, market expectations are rising.
According to related industries on the 3rd, the Changdong Private Station Development Project, which develops Changdong Station in Dobong-gu, Seoul, will resume after 11 years. The Changdong Private Station Development, planned to modernize the old Changdong Station, began its main construction in 2007 but was temporarily halted. However, in November 2019, after the decision to initiate corporate rehabilitation procedures for the Changdong Private Station project operator, and with the special purpose corporation Changdong Station Diot, representing the clothing wholesale mall 'Diot' of Dongdaemun Fashion Town, stepping in, the debt amount was settled, allowing construction to resume.
The revived Changdong Private Station will be a complex facility spanning from two basement floors to ten above-ground floors, with a total floor area of approximately 87,293㎡, including the complex shopping mall 'Arena X Square,' a transfer center, and station facilities. On the 4th floor of 'Arena X Square,' a Diot store is scheduled to open, and various cultural and convenience facilities will be established, further enhancing the convenience for local residents in the area.
A real estate official said, "The area around Changdong Station, where the Changdong Private Station is being built, was selected as the northeastern center of Seoul among the seven metropolitan centers in the '2030 Seoul Plan,' a key project planned during the tenure of former Seoul Mayor Park Won-soon," adding, "Seoul Mayor Oh Se-hoon also expressed during the last election campaign his intention to develop the Changdong Station area into the 'northern metropolitan center' like Gangnam Station, raising expectations once again."
Besides the Changdong Private Station, the Changdong-Sanggye area is undergoing a boundary-based urban regeneration revitalization project covering approximately 980,000㎡. As part of this project, 'Changdong Aurne' opened last November as a support facility for youth startups and middle-aged employment in the northeastern area of Seoul. With a total floor area of 17,744㎡ (from two basement floors to five above-ground floors), it houses four facilities in one complex space: ▲ Youth Startups (Northeastern Startup Center) ▲ Middle-aged Entrepreneurship and Reemployment (50 Plus Northern Campus) ▲ Youth and Artist Housing (Changdong Aurne Village) ▲ Civic Group Activities (Northeastern NPO Support Center).
Additionally, 'Seed Cube Changdong,' a 49-story startup and cultural industry complex funded by the Housing and Urban Fund, began construction in November 2019 with a goal to complete in 2023. Adjacent to Changdong Aurne, the 'Seoul Robot Artificial Intelligence Science Museum' and the 'Seoul Photography Museum' are also scheduled to open in 2023, with construction starting in May and September of this year, respectively.
Moreover, Changdong Station, served by subway lines 1 and 4, will become a new transportation hub in northeastern Seoul with the addition of the GTX-C line. Having passed the preliminary feasibility study, the GTX-C line is a 74.8 km route connecting Suwon to Deokjeong, enabling travel from Changdong Station to Samsung in about 10 minutes once opened. Furthermore, an underground road is planned for the Dongbu Expressway section between Changdong and Sanggye, which will further improve the transportation environment.
As the northeastern Seoul area centered around Changdong Station is developed into a key hub of Seoul, real estate prices in the area are rising with expectations of benefits. According to the Ministry of Land, Infrastructure and Transport's actual transaction price inquiry system, an 84㎡ unit in 'Donga Cheongsol Apartment' (built in 1997) was sold for 1.1 billion KRW in April. A month earlier, in March, it was traded for up to 1.14 billion KRW. Compared to 845 million KRW in March last year, the price has risen by about 300 million KRW in one year.
The 'Changdong Daelim Apartment' (built in 2003), located in the immediate vicinity of Changdong Station, also entered the 1 billion KRW club with an 84㎡ unit sold for 1 billion KRW in April. Until September last year, the transaction price was 850 million KRW, but it rose by 150 million KRW in seven months. The 'Changdong Jugong 3rd Complex,' which has reconstruction prospects, also set a new record by selling a 79㎡ unit for 1.0275 billion KRW in June, surpassing the previous highest price of 890 million KRW just two months earlier.
A representative from a brokerage in Changdong said, "This is the result of various development benefits such as the Changdong Private Station, GTX-C line, and urban regeneration revitalization projects," adding, "Changdong, which had a strong image of being underdeveloped compared to other areas in Seoul, will become a highly preferred area not only in Dobong-gu but also in northeastern Seoul through the development of the Changdong station area."
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