GTX-B Enters Full Swing with Private Investment... Undervalued Songdo and Namyangju in the Spotlight [Practical Investment]

Recent Construction Contracts Signed with Daewoo E&C and Others
Privately Financed Section of 4.2894 Trillion Won Virtually Fully Funded
Songdo and Namyangju See Price Drops of Hundreds of Millions from Peak... Hopes Rise for Recovery as GTX Construction Begins
Following the A Line Example, "The Best Investment Window Is from Now Until Opening"
Expert: "Selective Approach Focusing on Prime Station Areas... Gap Between Station and Non-Station Areas Will Widen"

The GTX-B line of the Greater Seoul Metropolitan Express Railway (GTX) has entered full-scale development after successfully attracting private investment. This line, connecting Incheon Songdo and Namyangju, is scheduled to open as early as 2030. As construction of the GTX-B line accelerates, areas expected to benefit, such as Incheon Songdo and Namyangju in Gyeonggi Province?which had experienced price adjustments due to project delays and high interest rates?are once again drawing attention.

GTX-B Enters Full Swing with Confirmation of Private Investment

Incheon Songdo International City (left) and an apartment complex in Namyangju. Photo by Lee Juryong, Asia Economy.

According to the Financial Supervisory Service's electronic disclosure on August 5, GTX-B's project operator, GTXB Co., recently signed construction contracts with Daewoo E&C (1.0343 trillion won), HS Hwaseong (114.9 billion won), Taeyoung E&C (114.9 billion won), and Dongbu E&C (114.9 billion won). With major financial institutions such as IBK Industrial Bank of Korea joining as new investors, funding for the privately financed section, totaling 4.2894 trillion won, has been virtually completed.

The B line stretches a total of 82.8 kilometers, starting from Incheon Songdo International City (Incheon National University Station), passing through Yeouido, Yongsan, Seoul Station, Cheongnyangni, and ending at Maseok in Namyangju. The Ministry of Land, Infrastructure and Transport plans to complete construction permits within the year, and some sections have already broken ground as of May.

The full-scale launch of GTX-B is seen as a catalyst for resolving the east-west disconnection in the Seoul metropolitan area and triggering a structural transformation in the real estate market landscape. While GTX is regarded as a key transportation infrastructure that overcomes the physical distance limitations of the metropolitan outskirts, the B line had faced prolonged delays due to project setbacks and funding challenges. The recent success in attracting private investment is considered highly symbolic, as it not only marks the start of construction but also effectively eliminates the "uncertainty" that the market had been most sensitive to.

Songdo and Namyangju Rebound After Slump... "GTX as a Turning Point"

In particular, Songdo is expected to shed its image as an "isolated island" by entering the 30-minute commute zone to Yeouido and Seoul Station thanks to the GTX opening. This holds significant meaning in terms of attracting external demand and expanding corporate residential needs. Namyangju, meanwhile, is expected to see its status shift from a "bedroom community" to a "new growth axis" as it simultaneously strengthens its self-sufficiency through projects such as Wangsuk New Town and the attraction of high-tech industrial complexes.

Beneficiary areas such as Songdo and Namyangju have experienced real estate price adjustments for several years due to both GTX-B delays and the economic downturn. According to KB Real Estate, the average apartment sale price in Songdo fell from about 1.03 billion won in 2022 to 822 million won as of August 5, while the nearby "The Sharp Songdo Marina Bay" 84m² unit traded in the low 600 million won range?nearly half of its peak price of 1.14 billion won.

In Namyangju, the "Hopyeong Onet Central" 74m² unit near Pyeongnae-Hopyeong Station, which peaked at 740 million won in 2021, has recently been trading around 600 million won. Apartment complexes near Maseok Station also continued to see price adjustments, to the extent that the positive impact of GTX seemed negligible. However, signs of a rebound are now emerging, starting from the pre-sale market. Expectations for GTX benefits are appearing more quickly in the rental and new subscription markets than in sales transactions.

Park Wongap, Chief Real Estate Expert at KB Kookmin Bank, said, "The positive impact of GTX has not yet been fully reflected in either Songdo or Namyangju," adding, "It is especially important to adopt a selective approach centered on complexes with immediate station access." He also stated, "The differentiation between areas with GTX stations and those without will become increasingly pronounced."

In the actual market, new complexes with excellent GTX accessibility are leading the recovery, such as Songdo The Sharp First Park (a 6-minute walk away, with recent 84m² transactions at 1.1 billion won) and Namyangju "Doosan We've the Zenith N49" (within walking distance of Pyeongnae-Hopyeong Station, with 84m² units priced between 640 million and 780 million won at launch).

"Pre-Opening Is the Opportunity"... Investment Timing Lessons from GTX-A

The case of the GTX-A line serves as a key reference for predicting the price trend of the B line. For the A line, price increases were concentrated between groundbreaking and opening, with the upward trend slowing after the line began operation. Experts expect the B line to follow a similar pattern, viewing the period from now until opening as the true "golden window" for investment.

Yang Jiyeong, Senior Expert at Shinhan Premier Pathfinder, said, "The impact of GTX opening is clear, but the degree of effect may vary depending on the supply-demand structure in each region." She analyzed, "Songdo still has a large number of units scheduled for occupancy, so a medium- to long-term approach is needed rather than a short-term one, while Namyangju has greater upside potential due to the combination of transportation, new towns, and industrial complexes."