[Commuting Hell Liberation Diary]⑭ The 'Crossrail Effect' Clearly Seen in London Suburbs... Some Areas Saw House Prices More Than Triple

[Asia Economy Reporter Ryu Tae-min] The Elizabeth Line of Crossrail, dubbed the "British version of GTX (Greater Seoul Metropolitan Area Express Train)," opened last May. It has been over 13 years since construction officially began in 2009. In Korea, since GTX construction accelerated in 2019, housing prices in beneficiary areas have skyrocketed after the line's opening. The same is true in London, UK. With growing expectations for improved transportation networks following the Crossrail opening, large-scale housing supply has been provided in beneficiary areas, causing housing prices to soar both in central and suburban London.

October 6th (local time) morning, interior view of the Crossrail Elizabeth Line train in London, UK. (Photo by Ryu Taemin)

Crossrail is a metropolitan express railway project connecting Reading in west London and Heathrow Airport through central London and the financial district to the east. It spans a total length of 118 km with 41 stations, mostly sharing routes with existing UK railways. The total project cost reaches ?19 billion (approximately 30 trillion KRW).

Its speed is a major advantage. Trains reach a maximum speed of 120 to 140 km/h. This is 3 to 4 times faster than the average speed of Seoul’s subway (29.3 to 35.9 km/h) and more than twice as fast as the express service on Line 9 (46.8 km/h). The fare is similar to that of the regular London Underground, so it does not impose a heavy burden on citizens. Especially, since it passes through Canary Wharf, one of London’s two major financial centers, and Farringdon station in the heart of the city, it is very popular among commuting workers.

Residential area view in Woolwich, London, UK (Photo by Ryu Taemin)

The problem is the rise in housing prices. According to a survey released last May by London real estate agency Benham & Reeves, since the initial announcement of Crossrail, housing prices in beneficiary areas have increased by more than threefold. According to this survey, the average housing price in Tottenham Court Road, a central area served by the Elizabeth Line, rose from ?725,603 in August 2008 to ?2,285,739 last May, an increase of ?1,560,136 (215%). This rise is 163% higher than the average increase of 52% in the Westminster borough where it is located.

The same applies to outer London areas. In Woolwich, located in southeast London, the average housing price rose from ?181,022 to ?413,360 during the same period, an increase of ?232,338 (128%). In Seven Kings, located in northeast London, prices increased from ?254,328 to ?548,526, up ?294,198 (116%), and nearby Romford saw prices jump from ?199,635 to ?423,740, a rise of ?224,105 (112%). A Benham & Reeves representative said, "Despite several delays in the Crossrail project, housing prices in beneficiary areas have steadily increased," adding, "Since the transportation benefits remain, prices are expected to continue rising."

A residential area in Woolwich, London, UK. Newly built large housing complexes are lined up near the subway station. (Photo by Tae-min Ryu)

On the 6th of last month (local time), the reporter traveled from the financial center Canary Wharf to Woolwich, a representative beneficiary area, using Crossrail, which took just over 14 minutes. Near the subway station, newly built large housing complexes were densely packed.

Visiting a local real estate office, several people were seen viewing houses despite it being a weekday afternoon. Alex Moron, a representative of Manncountrywide real estate agency, said, "Since the announcement of Crossrail, there has been a large influx of workers commuting to Canary Wharf," adding, "Most of them are moving here from outer London areas with poor transportation." He continued, "Since the opening was scheduled for May, prices have surged sharply since April," and said, "Not only Woolwich but also housing near Abbey Wood station nearby is mostly still under construction, yet all units have been reserved."

There are also voices expressing concern over this rapid rise in housing prices. Robin Hickman, a professor of urban planning at the University of London, said, "London housing prices are already rising steeply, which is considered a social problem," adding, "The opening of Crossrail is accelerating the rise in housing prices." He further explained, "With housing prices soaring in areas with expanded transportation networks, it is practically impossible for low-income groups to find homes," and emphasized, "The government needs to expand social housing to resolve these issues."

※This project was supported by the Press Promotion Fund, funded by government advertising fees.