"Gangneung Express Is Coming": Gangneung Gets Closer to the Nation, Future Value Rises

- 365,000 Passengers Used the Donghae Line in Two Months; Transportation Upgrades Expected After Next Year’s ITS Congress
- Real Estate Market Heats Up... Attracting Both End-User and Investment Demand

As Gangneung in Gangwon Special Self-Governing Province emerges as a transportation hub offering convenient access nationwide, real estate demand in the area is also surging. With major transportation developments that directly impact real estate value being planned, it has become easier to travel to other regions. As a result, both end-user demand for actual residence and investment demand for second homes are converging on Gangneung.

Sky Bay Hotel viewed from Gyeongpo Lake, Source: Korea Tourism Organization

Since the opening of the Donghae Line connecting Gangwon, North Gyeongsang, Ulsan, and Busan in January, the cumulative number of passengers reached 800,000 as of May. The special Donghae Line tourist train, scheduled to depart in July, sold out early, reflecting interest that exceeded expectations. The new line has made it convenient to travel along the coast from Gangneung to Pohang, Dongdaegu Station, Ulsan Station, and Bujeon Station, attracting a large influx of tourism industry professionals, local merchants, and travelers. On weekends, competition for tickets is so fierce that reservations are nearly impossible, and users have praised the ability to reach Gangneung, one of Korea’s top tourist cities, in a short time.

Gangneung is also served by the KTX Gangneung Station, which connects directly to Seoul. According to the Gangwon branch of Korea Railroad Corporation (KORAIL), the cumulative number of passengers on the Gangneung KTX Line reached 34.16 million as of the end of January. Over the past seven years, nearly two-thirds of Korea’s population has traveled between Seoul and Gangneung. In addition, the “Gangho Axis” railway, which will link Suseo in Seoul’s Gangnam district to Gangneung and Mokpo in South Jeolla Province to Gangneung, is scheduled to open around 2028. The expansion of this metropolitan high-speed rail network is expected to further boost the region’s value.

Gangneung’s transportation system is expected to be further upgraded following the 2026 ITS (Intelligent Transport Systems) World Congress, scheduled for October next year. This event, to be held at Gangneung Olympic Park, will bring together global transportation experts and companies to showcase smart transportation technologies and exchange information. Recently, Gangneung signed business agreements with the Korea Road Traffic Authority and private companies specializing in traffic signaling to establish a cooperative system for a successful event. Gangneung is expected to become a hub for future transportation technologies such as autonomous driving and smart signals.

As a result, the steady stream of tourists visiting Gangneung to enjoy the city’s many monthly events is expected to continue. As of this year, Gangneung’s beaches opened starting with Gyeongpo on June 28, and festivals are held regularly. Between May and June alone, festivals such as the Gangneung Danoje Festival, Tea Culture Festival, Myeongju Royal Tomb Ritual Eve, and Gangneung Marble Gourmet Festival took place. Including exhibitions, events, performances, and hands-on experiences, there is something to enjoy every single day of the month. The “2nd Gangneung Busking National Competition,” which opened on July 4, has also become a major topic of conversation.

◆ Gangneung’s Real Estate Market Heats Up with Major Transportation Developments and Plans

With the opening and planning of major transportation projects in Gangneung, the local real estate market is also heating up. When transportation infrastructure is expanded, regional value rises due to population inflow, infrastructure development, and economic revitalization, which can in turn cause real estate values to soar.

According to the “2025 Real Estate Trend” report jointly released in January this year by R2 Korea Real Estate Investment Advisory, Gallup Korea Research Institute, and Heerim Architects & Planners, 64% of respondents cited “transportation convenience” as the most important factor when choosing a home location, marking the highest priority for three consecutive years. As the transportation network improves, demand increases and housing supply proceeds smoothly. A large-scale residential complex of about 1,500 units is being developed in the Gyeongpo district, with supply targeted for the first half of next year.

In particular, Gangneung has benefited significantly from the opening of the Donghae Line, with the Yeongdong region’s sales index rising sharply as a result of the expanded transportation network. According to the “Economic Trends in Yeongdong Region, Gangwon Province, January 2025” report released by the Bank of Korea Gangneung Branch, the sales index for large retail stores in the Yeongdong region reached 153.8 points, up 30.5% from the same period last year. The opening of the Donghae Line in January led to a nationwide surge in demand for Gangneung, resulting in a sharp increase in sales.

An industry official stated, “Since transportation accessibility is considered the top priority for home buyers, not only local residents but also potential newcomers are showing keen interest in Gangneung’s real estate market. In particular, Gangneung’s status as a tourist city and its ongoing development make it an attractive location for both residential living and investment, raising expectations even further.”