Not All Station-Area Locations Are the Same—Home Prices Rise More Sharply in Ultra-Close-to-Station Areas

[Financial News] Home prices are rising more sharply for apartments closer to stations, even within the same neighborhood, bringing ultra-close-to-station locations back into focus. As the expansion of the Seoul metropolitan subway network has reduced the scarcity of ordinary station-area locations, purchase and housing subscription demand is concentrating on complexes within a three- to five-minute walk of a station.
According to the Ministry of Land, Infrastructure and Transport (MOLIT)'s real transaction price disclosure system on the 6th, a 53-square-meter unit at Mok-dong Sinsigaji 7 in Yangcheon-gu, Seoul, sold for 2.28 billion won in June this year. Compared with the 2.05 billion won sale of a unit of the same size in June last year, the price rose 11.2% in one year. The complex is directly adjacent to Mokdong Station on Subway Line 5.
By contrast, a 54-square-meter unit at Mok-dong Sinsigaji 8, located about a 10-minute walk from Mokdong Station, rose 5.5%, from 1.82 billion won in June last year to 1.92 billion won in June this year. The two complexes are similar in completion date and size and belong to the same Mokdong neighborhood, but their price gains over the past year differed.
A similar trend was seen in Gyeonggi Province. An 84-square-meter unit at Sungbok Station Lotte Castle Gold Town in Suji-gu, Yongin, Gyeonggi Province, directly adjoining an exit of Seongbok Station on the Shinbundang Line, rose 24.3% from 1.48 billion won in September last year to 1.84 billion won in September this year.
By contrast, an 84-square-meter unit at Seongbok Station KCC Switzen, located about a 10-minute walk from Seongbok Station, rose 13.6%, from 810 million won in August last year to 920 million won in July this year.
High competition rates continue in the housing subscription market, particularly for complexes directly adjacent to stations.
According to Cheongyak Home operated by the Korea Real Estate Board (KREB), Autier Banpo, supplied near Banpo Station on Subway Line 7 in Seocho-gu, Seoul, received more than 30,000 applications for 43 homes offered to the general public in April, posting an average competition ratio of 710.2 to 1.
Also supplied that month near Gongdeok Station on Subway Lines 5 and 6, Gongdeok Station Xi Rene received 6639 applications for 83 homes offered to the general public and closed in the first-priority round with an average competition ratio of 79.99 to 1.
Real estate developers expect that as the Seoul metropolitan rail network becomes denser, the actual walking time to a station, rather than simply whether a property is in a station area, will become an important criterion in home selection.
New complexes located close to stations will continue to be offered across the Seoul metropolitan area in the second half of this year.
Raon Construction plans to launch Junghwa Station Raon Private Centro for sale this month through an urban environmental improvement project in the Junghwa 3 Redevelopment Promotion District in Junghwa-dong, Jungnang-gu, Seoul. Junghwa Station on Subway Line 7 is about a three-minute walk away.
The apartment complex will have 176 units with exclusive areas ranging from 45 to 126 square meters, including 113 units for general sale. It will also offer 74 officetel units with exclusive areas of 20 to 59 square meters.
In Yongdam-ri, Yangseo-myeon, Yangpyeong County, Gyeonggi Province, Ssangyong Engineering & Construction plans to offer Ssangyong The Platinum Hangang this month. The complex will comprise 333 units with exclusive areas of 74 to 146 square meters and is adjacent to Yangsu Station on the Gyeongui-Jungang Line. Express trains can reach Wangsimni Station in the 30-minute range.
POSCO E&C plans to launch Akmer Dongtan for sale this month in Bansong-dong, Dongtan District, Hwaseong, Gyeonggi Province. The complex will comprise 1808 units with exclusive areas of 84 to 188 square meters.

[email protected] Choi A-young Reporter