Pyeongchon Housing Prices Soar on GTX Boom... Gyeonggi Outskirts Also Stirred

Last Week Anyang Dongan-gu Growth Rate 6 Times Higher Than New Town Average
Indeogwon Station Beneficiary Complexes Strong... Impact Extends to Uiwang
Gunpo, Osan, Anseong and Other Gyeonggi Outskirts Also See Housing Price Increase
Despite Government's 'Peak Warning'... Transportation Benefits Offset

[Asia Economy Reporters Kim Hyemin and Ryu Taemin] The housing prices in Pyeongchon New Town, Anyang, Gyeonggi Province, are rising sharply. Since the subway Line 4 Indeogwon Station stop on the GTX (Great Train Express) C line was virtually confirmed, both actual transaction prices and asking prices have soared to unprecedented levels. The outskirts of the metropolitan area are also experiencing housing price stimulation due to successive metropolitan railway developments. Despite the government's repeated regulations and warnings about housing price peaks, various transportation benefits are offsetting these concerns.

According to Real Estate 114 on the 9th, the apartment sale prices in the Dongan-gu area of Anyang City, which includes Pyeongchon New Town, rose by 0.19% in the first week of this month compared to the previous week. This is the highest increase rate among new towns in the metropolitan area. It is six times the average new town sale price increase rate of 0.03%. Compared to the second highest, Bucheon Jungdong New Town (0.09%), it is more than double the increase rate.

Until early last month, Pyeongchon New Town recorded a change rate of 0.06%, but since then, it has expanded to 0.13% and 0.17% in sale price increases. Kyunghee Yeo, Senior Researcher at Real Estate 114, explained, "Due to transportation benefits, apartment prices near Indeogwon Station are showing strength." Indeogwon Station was virtually confirmed as a stop when Hyundai Construction was selected as the preferred negotiator for GTX-C in June. If the GTX-C line stops at Indeogwon Station, it will be possible to reach Samsung Station in 15 minutes and Cheongnyangni Station in about 20 minutes. In addition to GTX, the Dongtan-Indeogwon Line (Indong Line) and Wolgot-Pangyo Line (Wolpan Line) are also scheduled to stop at Indeogwon Station.

The transportation benefits are directly reflected in housing prices. Within a month, actual transaction prices jumped by about 100 million KRW, and asking prices soared by more than 200 to 300 million KRW.

The flagship apartment in the area, Pyeongchon The Sharp Central City 84㎡ (exclusive area) in Gwanyang 2-dong, was traded at a record high of 1.51 billion KRW on the 9th of last month. Considering it was traded at 1.39 billion KRW at the end of June, the price rose by 120 million KRW in just half a month. The 102㎡ unit in Gwiin-dong Kkummaeul Geonyeong 3rd Complex also jumped from 1 billion KRW at the end of May to 1.235 billion KRW on the 17th of last month.

The housing price rise is also steep in Poil and Naeson-dong, Uiwang City, which are considered beneficiary complexes of Indeogwon Station. The 85㎡ unit in Poil Forest Village 4th Complex in Poil-dong rose from 1.14 billion KRW in June to 1.26 billion KRW last month, an increase of 120 million KRW in one month. The 75㎡ unit in this apartment was traded at 1.15 billion KRW on the 21st of last month, significantly surpassing the previous transaction price of 975 million KRW in May.

The asking price increase is even steeper. For example, the asking price for the 85㎡ unit in Indeogwon Daerim 2nd Complex in Pyeongchon-dong, Anyang, reaches 1.25 billion KRW. Compared to the actual transaction price of 1 billion KRW in June, this is 250 million KRW higher. The 60㎡ unit in Indeogwon Village Samsung in Gwanyang-dong was traded at 970 million KRW on the 17th of last month, but the current asking price is formed around 1 to 1.2 billion KRW.

Meanwhile, the outskirts of Gyeonggi Province also show no signs of calming down from the effects of metropolitan railways such as GTX. According to the Korea Real Estate Board, apartment prices in Gunpo, Osan, and Anseong areas rose by about 1% in a week. In particular, Gunpo City's apartment sale price increase rate recorded 0.85% in the first week of this month, the highest nationwide. Gunpo is expected to have the GTX-C line pass through Geumjeong Station, which is scheduled to start construction next year.

Anseong City, reflecting the benefits of the metropolitan inland line connecting Hwaseong Dongtan New Town and Cheongju Airport, has maintained an apartment sale price increase rate in the 0.8% range for four consecutive weeks after recording 0.85% in the second week of July. Osan City, where the extension project of the Bundang Line from Giheung to Dongtan and Osan was confirmed, also recorded an apartment sale price increase rate of 0.81% in the first week of this month.

Park Wongab, Senior Real Estate Specialist at KB Kookmin Bank, said, "With GTX and various railway benefits, expectations for transportation improvements across the metropolitan area are growing, continuing the upward trend in Gyeonggi areas," adding, "In some areas, demand seems to have increased due to the perception that prices are cheap because they have not risen for a long time."