"Land Price in Goyang Daegok, 2 Million KRW per Pyeong... Already Doubled" [GB Lifted 50,000 Households]

"Land Prices in Daegok District Rise to 2 Million KRW per 3.3㎡"
"80,000 to 100,000 KRW More Expensive Than Nearby Neunggok District"
Daegok District Prices Reflect Planned Development
Apartment Purchase Inquiries Increase Ahead of Year-End GTX-A Opening

"The land price in Goyang Daegok District has already risen to 2 million KRW per 3.3㎡ (pyeong). Although the land price in nearby Neunggok-dong has also increased, it is still around 1 to 1.25 million KRW. Daegok District is a planned acquisition area anyway, even if the greenbelt is lifted to supply apartments. Prices have risen on the expectation that development will take place. In a situation where it is uncertain whether land compensation will be 2.2 million KRW or 2.3 million KRW per pyeong, it is difficult for transactions to increase further."

On the 5th, the consultation manager at A Real Estate Agency located near Goyang City Daegok Station Area District in Gyeonggi Province stated this. Although the Ministry of Land, Infrastructure and Transport announced that 9,400 new housing units would be supplied here that day, they diagnosed that land prices have already fluctuated greatly due to various transportation benefits. They also predicted that although new benefits were announced, it would be difficult for land prices to rise further than now. Rather, they expected that when the metropolitan area express railway (GTX) Line A at Daegok Station opens at the end of the year, apartment prices nearby would rise more than land prices.

This district is a greenbelt area but was covered with vinyl greenhouses and fields. Due to expectations for development, land prices had risen to the 2 million KRW range per 3.3㎡. The A Real Estate Agency said, "Land prices in this area have risen significantly," adding, "The minimum purchasable land is about 300 to 400 pyeong, so buying land requires a large amount of money."

The representative of B Real Estate Agency in Daejang-dong, Daegok District, said, "Creating new residential sites is a positive factor, but it is difficult for land prices to rise further." He explained, "This area already has a development plan, so even if new residential sites are supplied, the effect will not be significant," adding, "News of new residential site development through greenbelt release and so on causes land prices to rise sharply only if it comes before development plans like in Gangnam are made."

A resident met in Neunggok-dong said, "Compared to the already risen land prices in Daegok District, the land in Neunggok-dong, which is below Daegok District, is cheaper," but added, "I bought land in Neunggok-dong for 780,000 KRW per 3.3㎡ five years ago, and recently I know it has exceeded 1 million KRW."

There are vinyl greenhouses and fields in the Daegok district of Goyang City, Gyeonggi Province. Photo by Seungwook Park

The expectation for the opening of GTX-A Daegok Station at the end of the year raised land prices more than new residential site development. The A Real Estate Agency manager said, "The announcement of new residential site candidates is also a positive factor, but buyers are more interested in the fact that five stations, including GTX, pass through Daegok Station." He continued, "Recently, buyers are more interested in apartments than in land that has risen a lot," and explained, "Apartment prices have not risen significantly yet."

According to the Ministry of Land, Infrastructure and Transport's actual transaction price system, the 'Daegok Station Doosan We've' apartment in Todang-dong, Daegok District, with an exclusive area of 59㎡, was traded for 630 million KRW in January. This apartment's price rose to 670 million KRW in August but did not increase further afterward. The actual transaction price of the relatively older 'Daelim Apartment' in Todang-dong with the same exclusive area also only rose from 400 million KRW in February to 420 million KRW in September.

There is also a forecast that the new residential site development combined with the GTX-A opening at the end of the year could raise nearby apartment prices. The representative of A Real Estate Agency said, "Since Daegok District development is not yet advanced, once development becomes full-scale, prices of nearby complexes will rise significantly." He added, "Along with apartment supply from residential site development and the GTX opening at the end of the year, nearby housing prices will rise further."

A price list for properties is posted at a real estate agency near Todang-dong, Deogyang-gu, Goyang-si, Gyeonggi Province. Photo by Seungwook Park

There are also responses that more time must be waited since it is residential site development. Another resident in Neunggok-dong said, "There has been talk for 15 years that Daegok District would be developed, so I bought land, but development was sluggish," adding, "It is good news that development is happening now, but I think we need to wait at least 10 more years for residential site development."

The representative of C Real Estate Agency in Daegok-dong, Daegok District, said, "This district development will take at least 8 to 10 years, during which time development in Daegok District will progress and housing prices may rise," adding, "If sales occur in Daegok District during that time, it could literally be a 'lottery sale.' Since there will be subscription opportunities, I think it is good for those without homes."