An Apartment Once Worth 400 Million Won Nears 1 Billion... "Still Worth It" as 1990s-Born Pangyo Workers Flock to Gyeonggi Gwangju [Report]

14 Minutes from Pangyo by Gyeonggang Line
80-90% of Clients Are '1990s-born Pangyo Commuters'
Flagship Apartment Once Priced at 400 Million Won Now Nears 1 Billion
Unregulated Development and Land Compensation Disputes Remain Key Issues

On October 1, I visited the area around Gyeonggi Gwangju Station in Gwangju, Gyeonggi Province. As I exited the station, the first things that caught my eye were low-rise villas and old commercial buildings, each two to three stories tall. After passing through an alley reminiscent of an untended country path and walking for another one to two minutes, newly built high-rise apartment complexes came into view, towering in the distance. Around the station, construction fences have been set up in various spots, and the distinct atmospheres of an outdated old town and a modern new city blend in a somewhat disordered way, creating a rather chaotic impression.

The real estate landscape of Gwangju, once considered underdeveloped, is now being restructured as young IT professionals, unable to cope with the high housing prices in Seoul and Pangyo, are flocking to the area for its proximity to Pangyo and relatively affordable home prices. It takes about 14 minutes to travel from Pangyo Station to Gyeonggi Gwangju Station via the Gyeonggang Line. Around Pangyo Station, an apartment of about 99 square meters is priced between 2 billion and 3 billion won. In contrast, a 109-square-meter apartment near Gyeonggi Gwangju Station is valued at around 600 million to 700 million won.

According to a local realtor, "The Gyeonggang Line offers high-speed rail service with excellent accessibility to Pangyo, and both housing and living expenses here are inexpensive, so a lot of young people are moving in. Around 80 to 90 percent of our customers are people born in the 1990s working in Pangyo," he explained.

On the 1st, I visited the area around Gyeonggi Gwangju Station in Gwangju, Gyeonggi Province. As I exited the station, low-rise villas and old commercial buildings with two to three floors caught my eye at first, but after walking for one to two more minutes, newly built high-rise apartment complexes towering in the distance came into view. Photo by Sim Sungah

An Apartment That Sold for 400 Million Won Now Nears 1 Billion Won

The 84-square-meter Nature&Xi apartment, considered a landmark complex in the area, was sold in 2019 for around 400 million won. Its price has recently surged to 985 million won, putting it on the verge of surpassing 1 billion won.

There are also a series of favorable developments in transportation. When the Suseo-Gwangju Line opens in 2031, it will be possible to travel from Gyeonggi Gwangju Station to Suseo Station in just two stops. In addition, plans are underway for the GTX-D metropolitan express railway line and development of the Gyeonggi Gwangju Station district, providing further positive momentum for the area.

Another realtor commented, "Recently, instead of gap investment, there is a trend of people in their 20s and 30s focusing on purchasing new apartment pre-sale rights for actual residency. Even for newly built apartments in the outskirts such as Gonjiam, a 79-square-meter pre-sale right comes with a premium (P) of more than 50 million won," they noted. The realtor continued, "Lotte Castle Signature, set to begin pre-sales in October, will offer 84-square-meter units for close to 900 million won, but with positive factors such as a 396,000-square-meter park donation, I expect home prices to rise even further due to the shortage of supply by the time tenants move in."

Yoo Jongguk, chairman of the Preparation Committee for the Yeokdong Station Area Urban Complex Development Project, stated, "We have submitted the resident consent forms to the Gwangju city office and are now awaiting the city’s decision on whether to pursue public development or private urban complex redevelopment. Perhaps because Gyeonggi Gwangju Station is about to become a double station district, external inquiries have surged." He added, "Compared to four or five years ago, it feels like prices for aging buildings in the area have risen by more than 30 percent. Outside investors are showing intense interest."

The Shadow Behind the Development Boom... Compensation Conflicts Intensify as Project Transfers to LH

However, behind the dramatic surge in development, tensions and conflicts have also deepened. Recently, the government announced that Jangji-dong and its surroundings would be considered as candidates for new public housing districts, and as the likelihood grows of the project being transferred from the city of Gwangju to Korea Land & Housing Corporation (LH), opposition within the community is mounting.

On the 1st, at Jangji-dong, a candidate site for new government public housing land, banners opposing public development were hung chaotically in various places. Photo by Seongah Shim

Banners opposing public development were hung chaotically around the site. An employee at a nearby shop remarked, "It's not so much that people oppose development itself, but more that they're worried they won't be able to sell their land at a high enough price."

Owner C of a local real estate office said, "About 40 percent of the owners are older folks who have held on to the land for a long time and have a lot of attachment to it. There is a prevailing perception that LH usually offers lower prices than private developers, so it will likely take some time for tensions to subside."

Since the government announced the designation of the new development zone, inquiries from outside the area have increased. Realtor D said, "After the news about development broke, we've received several more phone calls from external parties."

This content was produced with the assistance of AI translation services.