Kimpo Apartments Rebound... National Standard Units Break the 1 Billion Won Ceiling

Real Transaction of 1.1 Billion KRW for 84㎡ at Hangang Metro Ja-i 2 Complex
Expectations Rise with Subway Extensions Including Incheon Line 2 and Seoul Line 5
Janggi-dong Slows Down Due to Cancellation of GTX-D to Gangnam
Transportation Improvement Expected with Connection to Line A Kintex Station in Geolpo-dong Area

[Asia Economy Reporter Ryu Tae-min] In Gimpo-si, Gyeonggi Province, an 84㎡ (exclusive area) apartment, known as the national standard size, has surpassed 1 billion KRW for the first time. This is attributed to the consecutive transportation benefits around Geolpobukbyeon Station, including the extension of Incheon Subway Line 2 and the planned extension of Seoul Subway Line 5 to Gimpo.

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system on the 27th, an 84㎡ apartment in ‘Hangang Metro Xi Complex 2’ in Geolpo-dong, Gimpo-si, was sold for 1.1 billion KRW on the 24th. This is the first time that a national standard size apartment in Gimpo-si has exceeded 1 billion KRW. Currently, the asking price for this apartment is between 1.2 billion and 1.3 billion KRW. The previous highest price for an 84㎡ apartment in Gimpo-si was in Hangang Metro Xi Complex 1, which was sold for 985 million KRW on the 13th of last month.

After a period of stagnation, apartment prices in Gimpo have recently shown signs of rebounding. According to the Korea Real Estate Board, the apartment price increase rate in Gimpo-si last week was 0.35%. Compared to April and May, when the rate dropped to 0.01% due to the cancellation of the direct connection of the GTX D line to Gangnam, the upward trend has become steeper again.

Apartment prices in Gimpo have risen significantly since last year due to the ‘balloon effect’ of regulatory areas. However, when the GTX-D line, which was expected to pass through Gangnam in Seoul, was confirmed as the ‘Gimpo-Bucheon line’ only running between Gimpo and Bucheon, disappointment sales flooded the market, causing the price increase rate to drop sharply from April. Additionally, from June, multi-homeowners rushed to sell properties in Gimpo fearing the implementation of increased capital gains tax, which dampened the price growth momentum.

The renewed sharp rise in Gimpo housing prices came after the Ministry of Land, Infrastructure and Transport announced the ‘4th Metropolitan Area Wide Transportation Implementation Plan’ in July. This plan includes the extension of Incheon Subway Line 2, passing through Geomdan New Town in Incheon and Geolpobukbyeon Station, connecting to Kintex Station in Goyang-si, Gyeonggi Province, where GTX-A stops. Although the direct connection to Gangnam was canceled, if this plan is realized, residents in Geolpo-dong and Bukbyeon-dong will be able to transfer at Kintex Station for direct access to Gangnam.

Furthermore, the Ministry of Land, Infrastructure and Transport has included the Seoul Subway Line 5 extension plan to Gimpo (Gimpo-Goyang) as an additional review project in the 4th railway network plan, raising expectations for development. Also, a complex transfer center will be constructed at Geolpobukbyeon Station to alleviate traffic congestion.

However, despite the transportation benefits, housing prices in Gimpo appear to be differentiated by area. While the Geolpo-dong area, considered the biggest beneficiary of the metropolitan transportation plan, is seeing a significant increase in housing prices, areas like Janggi-dong and Gurae-dong, which suffered from the backlash of the GTX cancellation, are experiencing relatively modest price increases. For example, an 84㎡ unit in Hangang Central Xi Complex 1 in Janggi-dong was sold for 742 million KRW on the 3rd of this month, about 50 million KRW higher than the 694 million KRW transaction price in March.

Meanwhile, with Gimpo joining, the number of areas in Gyeonggi Province where actual transaction prices for 84㎡ apartments have exceeded 1 billion KRW has increased to 16. Until last year, only 10 areas in Gyeonggi Province belonged to the 1 billion KRW club, but this year, Uiwang, Gunpo, Guri, Bucheon, Siheung, and Gimpo have newly joined. Additionally, Pyeongtaek, Paju, and Ansan are also approaching the 1 billion KRW mark for national standard size apartments, suggesting that the number will likely increase further in the future.