The third phase of new town applications attracted actual demanders, achieving success with all areas recording competition rates of double digits, except for Incheon Gyeyang, which was sold last year. However, concerns have arisen that the scheduled infrastructure construction for transportation may be delayed, resulting in a delay in occupancy by 1 to 3 years.
According to the Korea Land and Housing Corporation (LH) on the 31st, the results of the application for general supply for Block A7 in the Bucheon Daebang district, which took place on the 27th, showed that 13,312 applications were received for 110 households, recording an average competition rate of 121 to 1. Similarly, Block A8, which also conducted general supply applications on the same day, had 12,769 applicants for 93 households, closing at 137 to 1.
The A5 and A6 blocks (e-Pyeonhan World Daebang Pursitum) in the Bucheon Daebang district, which conducted applications on the 16th of this month, also saw an average competition rate of 22.3 to 1, with 14,951 applications for 670 households. The competition rate for the general supply of the Hanam Gyosan A2 block (Gyosan Prugio The First), sold on the 8th, was 263.28 to 1.
Previously, in February, the general applications for the A4 (Newlyweds Hope Town), S5, and S6 blocks in the Goyang Changlu district recorded a competition rate of 53.2 to 1. All areas except for the Incheon Gyeyang district, which had a single-digit competition rate due to high sale prices compared to the preliminary applications last year, recorded competition rates in double digits.
Although construction costs have risen, and the sale prices during the general application exceeded initial expectations, recent increases in construction costs have led to continued increases in the sale prices of private apartments, suggesting a strong performance in the third phase of new town general applications.
However, forecasts that the completion of transportation infrastructure, which is a key consideration for actual demanders, will be delayed compared to expectations are raising concerns.
According to LH, the Songpa-Hanam line passing through the Hanam Gyosan district is expected to begin operations at least 3 years after occupancy due to a 4-year delay in its opening. The Songpa-Hanam line's original plan was to start construction in 2025 and open in 2030, but it has been postponed to start in 2027 and open in 2032. Additionally, it is now in a situation where an additional 3-month delay is unavoidable following the rejection in the first central investment review by the Ministry of Interior and Safety last month. Compared to the scheduled occupancy for the third phase of new towns between late 2027 and 2028, it is expected to be delayed by about 4 years.
The Goyang Eunpyeong line passing through the Goyang Changlu district had its expected opening goal pushed back from 2029 to 2031 when it received approval from the Ministry of Land, Infrastructure and Transport last year. Subsequently, Gyeonggi Province announced a tender for construction on the 13th. With the construction period expected to be about 5 years and 5 months from the start date, the actual completion is anticipated to be possible at the earliest in the first half of 2032.
The Seobu Line is also facing difficulties in selecting a construction company due to insufficient project feasibility, raising the possibility of a delay until 2031 from the original 2028 opening date. The opening of the GTX-A Changlu station has also been postponed from the initial target of 2026 to 2030 due to design changes and additional construction periods.
The GTX-B, a key traffic infrastructure being developed in areas such as Namyangju Wangjeong, Hanam Gyosan, and Incheon Gyeyang, held its groundbreaking ceremony last year, but due to concerns about revenue, some construction companies have begun to withdraw since the beginning of this year, delaying actual construction. The initial target for opening was 2030; however, considering the construction period of 72 months, a delay of at least one year is inevitable.
In light of this situation, it is anticipated that residents of the third phase of new towns will experience inconvenience for about 1 to 3 years, even after paying for housing costs that include transportation infrastructure expenses. An official at a real estate agency near the Goyang Changlu district noted, “It has gained significant attention due to public supply, but if the transportation infrastructure is not in place, residents will inevitably face inconveniences,” adding, “Especially since most are actual demanders, experiencing inconvenience during commuting carries significant implications.”
Professor Ko Jun-seok from Yonsei University’s Sangnam Institute of Management said, “Given the current situation of delays, if it’s delayed by 2 to 3 years, that would be a fortunate situation. The inconveniences for residents immediately after moving in will be very significant,” adding, “Especially for the public supply in the third phase of new towns, where many are actual demanders commuting via public transport, the impact is expected to be significant. The primary cause of the delay in construction is budget-related, making it difficult to find immediate solutions to expedite the construction process.”