"Rising Prices Fuel Belief in Government's Resolve"... Taereung and Yongsan Already Stirring

Rising Hopes for Home Price Increases Already
Housing Supply Planned for Taereung Country Club and Yongsan International Business District
Anticipation for Increased Transactions and Prices in Galmae-dong, Guri
Resident Opposition During Moon Adm

View of the Taereung Country Club direction from Galmae Station on the Gyeongchun Line in Guri City. Photo by Lee Jungyoon

As the Ministry of Land, Infrastructure and Transport announced plans to supply nearly 60,000 housing units in urban areas, expectations are rising in the affected regions. Residents near large-scale housing supply sites, such as the Taereung Country Club in Seoul and the Yongsan International Business District, are anticipating the benefits of local revitalization. In particular, the possibility of developing the Taereung Country Club is generating excitement not only in Nowon but also in Guri, which was excluded from the land transaction permit zone.

There are already optimistic forecasts in the Taereung Country Club area that apartment transaction volumes are increasing and this could lead to price hikes. Positive assessments have emerged from Galmae-dong in Guri City, located across from Galmae Station on the Gyeongchun Line. On January 28, a realtor in Galmae-dong said, "If there is a large-scale supply, the surrounding neighborhoods will be revitalized and apartment prices could rise, so many homeowners are hopeful," describing the local sentiment.

It was explained that although all of Seoul was designated as a land transaction permit zone under the October 15 real estate measures last year, Guri was excluded and could enjoy indirect benefits. Another realtor in the area said, "Expectations for the development of the Taereung Country Club have been gradually growing," and added, "In Guri, gap investment (buying with a tenant in place) is possible, making transactions easier than in Seoul, which will be an advantage."

The Taereung Country Club was also in the spotlight in 2020, during the Moon Jae-in administration, when it was selected as a candidate site for housing supply in the August 4 supply plan. The plan was to supply a total of 33,000 units in the Seoul metropolitan area, with 10,000 units allocated to the Taereung Country Club. However, concerns over traffic congestion, environmental destruction, deteriorating living conditions, and the site's proximity to the Taereung and Gangneung World Heritage sites led to the scale being reduced to 6,800 units. Even this reduced plan was met with strong opposition from residents, and not a single shovel was put in the ground.

This time, however, many believe things will be different. A realtor at Agency C said, "Watching prices rise, there is a growing perception that the current administration will follow through on its plans," and added, "With expectations for rising home prices and local revitalization, there does not appear to be any significant opposition."

Another realtor in the area said, "If more than 6,000 units are actually supplied, it would mean the creation of a large residential complex, including about 1,200 units at Galmae Station I-Park and 1,075 units at Guri Galmae Halla Valdi," and added, "More than 6,300 units are also planned for the Galmae Station area currently under construction, so improvements in public transportation, road expansion, and other living infrastructure are also expected."

The site of Yongsan International Business District in Yongsan-gu, Seoul, where the Ministry of Land, Infrastructure and Transport announced the supply of 10,000 housing units. Photo by Buaeri

Expectations are also high in Yongsan-gu, which will receive the largest share of new housing under this plan. A real estate office in Seobu Ichon-dong, adjacent to the Yongsan Maintenance Depot site, said, "If 10,000 units are built, many mid- and small-sized apartments and a large influx of young people are likely to move in," and added, "There are expectations that the environment around the apartment complexes will improve and that prices will rise further." Some realtors are promoting properties by highlighting the area's high investment value due to the favorable development prospects of the Yongsan Maintenance Depot.

Demand from those looking to enter the Yongsan area is also expected to increase. A local real estate agent said, "Once the supply is confirmed and the area becomes more active, inquiries will rise and prices are expected to jump."

However, there are also concerns that the plan to supply 10,000 units could be delayed or even scrapped. A resident of Yongsan-gu said, "Nothing has actually been built yet, and if the administration changes, the situation could change again," but added, "Since this is prime land in Seoul, there is still hope that something will eventually be built."