Expectations for High-Speed Rail Benefits... Active Sales Near KTX Stations in 'Suwon, Songdo, and Singyeongju'

KTX Scheduled from Suwon and Incheon... Active Sales Around Existing Stations Including Gyeongbuk

[Asia Economy Reporter Jo Gang-wook] Expectations are rising for new apartment sales around newly established KTX stations such as Suwon and Incheon, as well as existing KTX station areas like Daegu, Gyeongju, and Andong.

KTX stations are developed according to long-term development plans, with the characteristic of transforming the surrounding area into mini new towns. Since high-speed rail is used less frequently than subways, the advantage lies more in improving residential conditions through infrastructure expansion rather than train convenience.

According to real estate market analysis firm Real Estate Info on the 5th, the area that has greatly benefited from high-speed rail is around Gwangmyeong Station. Alongside KTX, large convenience facilities such as IKEA, Lotte Premium Outlet, and Costco have been established, and Chung-Ang University Hospital is scheduled to open next year. Office facilities like knowledge industry centers are also being built one after another, increasing job opportunities. Approximately 9,700 apartment units surround Gwangmyeong Station. The ‘Gwangmyeong Station Park Xi’ with a floor area of 84㎡ was traded for 1.45 billion KRW in May, with asking prices reaching 1.5 billion KRW.

Kwon Il, Research Team Leader at Real Estate Info, said, “When Gwangmyeong Station first opened, it was criticized as being built in the middle of nowhere with doubts about who would use it, but now it has become a representative residential area in the southwest region with a harmonious mix of transportation, residential, commercial, and office facilities. While price increases are partly due to KTX convenience, the effect of improved surrounding infrastructure from high-speed rail is even greater.”

In provincial areas, housing prices have also risen centered around KTX stations. Near Kimcheon-Gumi Station in Kimcheon, Gyeongbuk, the ‘Kimcheon Innovation Gold Class’ with a floor area of 84㎡ sold for 387 million KRW in July, about 200 million KRW higher than the average apartment price in Kimcheon (175.8 million KRW, KB Kookmin Bank Liv Real Estate). Similarly, ‘Songjeong Station KTX Woobang IU Shell’ near Gwangju Songjeong Station was traded for 388 million KRW last month, about 100 million KRW higher than the Gwangju average (294.93 million KRW).

The areas around Incheon Songdo Station and Gyeonggi Suwon Station are also buzzing with anticipation for KTX openings. Songdo Station is set to be developed into the ‘KTX Songdo Station Complex Transfer Center’ as part of the ‘Incheon-origin KTX Direct Connection Project’ scheduled for 2024. Approximately 3,000 apartment units are also planned nearby. Suwon Station will be developed as a KTX departure station (scheduled for 2024). Convenience facilities such as AK Plaza, Lotte Department Store, Lotte Mall, Lotte Mart, and KCC Mall (planned) are located near the station. In Daegu, KTX, which previously only stopped at Dongdaegu Station, is expected to also stop at Seodaegu Station (since 2021), drawing attention.

New apartment sales continue near KTX stations. In the Suwon Station area, the community urban regeneration company Godongdong Regional Community Cooperative is currently selling ‘Suwon Godeung Summit Plex,’ a complex facility consisting of commercial and office spaces. The Godeung district is transforming into an emerging residential town with 12,365 residents (4,871 households) as residential environment improvement projects progress. Within a 1.5 km radius are Gyeonggi Provincial Government and the National Institute of Crop Science, and the Delta Plex industrial complex is a 20-minute drive away, making it a workplace-residential proximity complex that can absorb demand from workers. Additionally, several universities such as Sungkyunkwan University, Ajou University, and Gyeonggi University are nearby, facilitating demand from faculty and students.

Near Songdo Station, SK Ecoplant plans to sell ‘Hakik SK View’ in October through the redevelopment of Hakik 1 District housing. Of the total 1,581 units, 1,215 units with floor areas ranging from 59 to 84㎡ will be sold to the general public. The area has easy access to the Second Gyeongin Expressway Munhak IC and Gyeongin Expressway. Convenience facilities such as Homeplus, Hakik Market, and City Field (planned) are well established.

In provincial areas, near KTX Andong Station, Youngmu Construction plans to sell ‘Andong Station Youngmu Yedam’ in September, consisting of 944 units with floor areas of 75 to 84㎡. Priced in the 8 million KRW per 3.3㎡ range, units with 84㎡ floor area will be supplied in the 200 million KRW range. Interest-free benefits on interim payments are also provided, and since Andong is a non-regulated area, resale of pre-sale rights is possible. Taeyoung Construction also plans to sell ‘Shin Gyeongju The First Desiang’ near KTX Singyeongju Station in the same month. It consists of 945 units with floor areas of 59 to 84㎡. Using the Gyeongbu Line KTX and SRT lines, it takes about 2 hours to reach Seoul.