Input 2021.02.24 15:00
Experts say that when a residential complex is created in’Gwangmyeong Siheung’, which was announced as the location of the 6th 3rd new city, It was evaluated that there would be an effect of stabilizing house prices in the southwestern area of Seoul. However, it was said that the speed of supply and securing of railroad connectivity should be closely watched. Some suggestion that there is a need to further increase the supply of housing. There were also suggestions that it is important to increase the speed of’execution’.
On the 24th, the Ministry of Land, Infrastructure and Transport announced a plan to promote new public housing sites to expand housing supply in metropolitan areas. The Ministry of Land, Infrastructure and Transport is planning to develop a housing site with a scale of 12.71 million ㎡ in Gwangmyeong Siheung, Gyeonggi Province, 2.43 million ㎡ in Busan Daejeon, and 1.68 million ㎡ in Gwangju Sanjeong.
◇ Gwangmyeong·Siheung District 70,000 households “Close to Seoul and good balanced development effect”
Gwangmyeong and Siheung districts in Gyeonggi-do, which were announced this time, have been mentioned as the number one candidate for new cities in the metropolitan area. It is a place that encompasses Gwangmyeong-dong, Okgil-dong, Noonsa-dong, Gahak-dong, Siheung-si Gwarim-dong, Mujinae-dong, and Geumi-dong in Gwangmyeong-si. It was designated as the Bogeumjari housing district in 2010 during the Lee Myung-bak administration. It was lifted from the district in 2015 in the aftermath of the real estate economic downturn caused by the global financial crisis, and now there are rice fields and small warehouse facilities.
Joon-seok Ko, adjunct professor at the Graduate School of Law at Dongguk University, said, “It is close to Seoul and is a location that can distribute the demand for working houses in Guro, Ansan, Pyeongtaek, Incheon, etc.”. “If there is not much concern about self-sufficiency and if the metropolitan transportation network is well connected, Seoul “The effect of diversifying demand can be great.”
Park Hap-soo, senior real estate expert of KB Kookmin Bank, also said, “If you look at the public housing districts for the 3rd new city in the Seoul metropolitan area announced earlier, the northwestern region (Changneung Goyang, Gyeyang Incheon), the northeastern region (Namyangju), and the southeastern region (Gyosan Hanam) were announced, and the southwestern region was missing. It was regrettable, but it is appropriate in terms of arrangement,” he said, “but the regret that the supply is insufficient in such a good position is still there.”
According to expert committee member Park, the supply plan of 70,000 households announced by the government this time is less than that of the plan at the time of selection of the supply zone. Previously, the Lee Myung-bak administration had planned about 190,000 households as housing supply for public housing in the Gwangmyeong and Siheung areas by 2020.
◇ “Even if there is short-term anxiety, the effect of stabilizing house prices in the long term will be great”
Real estate experts predicted that, in the short term, housing prices in neighboring areas may rise due to the news that transportation networks will improve and large-scale residential complexes will be established, but there will be adjustments to lower house prices when moving in.
Gwangmyeong is the place where the largest new town in the Gyeonggi region is already being promoted. There are only 11 redevelopment areas. When the maintenance project is completed, a brand apartment village of 25,000 households is expected to be formed by 2025. Gwangmyeong Siheung New City announced by the government was also at a similar time. I plan to recruit tenants.
Professor Shim Gyo-eon of Konkuk University’s Department of Real Estate said, “Until the pre-sale, the market accepts it as a favorable development due to the expansion of the wide-area transportation network, and the price of a house in this area may be upset and the jeonse crisis may increase due to waiting demand.” “There will be a situation where the house price is lowered.”
Senior expert expert Hap-soo Park also said, “It is an area with good accessibility to Seoul, and it is expected to play a sufficient role in stabilizing housing prices in the southwest region, including the Gwangmyeong area.”
To this end, a railroad transportation network will be established connecting Lines 1, 2, 7, Sinansan Line, GTX-B, and the 2nd Gyeongin Line. However, there are many examples of transportation plans that are far behind the government’s schedule.
Senior Expert Park Hap-soo said, “After moving in the first and second new cities, we must never repeat the serious problem of traffic disruption. It is important to secure subway connectivity as planned by the government.”
Some advise that speeding up procedures such as zoning and land compensation can alleviate anxiety about rising house prices. In the case of the 3rd new city, Gyeyang in Incheon is due to the problem of excavation of cultural properties, and the Hanam district is having difficulty in stabilizing house prices as housing cannot be supplied as planned while experiencing legal disputes.
Most of the Gwangmyeong and Bucheon districts designated this time are also privately owned. Professor Shim Gyo-eon said, “In the end, the speed of supply is the key,” he said. “If the backlash from the land owner or local residents is strong, the project may be delayed from the planned schedule, so we must actively communicate.”
◇ “Busan Daejeo·Gwangju Sanjeong District, sufficient quantity, can meet housing demand”
Experts gave positive reviews one after another for the new public housing sites selected by the government in Busan and Gwangju. This is because the Busan Daejeo Public Housing Area is located north of Gimhae Airport and has transportation systems such as highways and subway lines 3, and Gwangju Sanjeong can serve as a residential area behind Hanam Industrial Complex.
The Ministry of Land, Infrastructure and Transport is planning to implement a living environment near direct-injury by arranging start-up support facilities and youth housing near the self-sufficient site in order to create a self-sufficient city in the area of Daejeo-dong, Gangseo-gu, Busan.
As a transportation measure, the Busan Gimhae Light Rail Station will be newly established in the district to facilitate access to downtown Busan and Gimhae. In addition, when the Gangseo Line tram passing through Myeongji New Town and Eco Delta City is confirmed, a station within the district will be installed to improve accessibility to the south side of the district.
The Gwangju Sanjeong District, located in Sanjeong-dong and Jangsu-dong, Gwangsan-gu, Gwangju, is planning to provide residential areas for workers such as the Bitgreen Industrial Complex in connection with the Gwangju-type job project, and to establish a smart logistics and youth startup platform. As a traffic countermeasure, a new road linking the Hanam Jingok Industrial Complex and the city center will be constructed, and the linking IC will be improved to facilitate wide area access to Muan Gwangju and Honam Expressways.
Prof. Joon-Seok Ko said, “Considering the flow of the real estate market in Busan and Gwangju, the amount of supply planned for the Daejeo and Gwangju peaks in Busan will have a sufficient impact on the local housing market.” (東高西低) There was a strong tendency, but development benefits and new towns in western regions such as Gangseo-gu could create synergies in terms of dispersing housing demand and balanced development.”
