As the underground railway project in Seoul gains momentum, the area around Yongsan Station is emerging as a primary candidate for consideration. If the underground line between Yongsan Station and Seoul Station goes ahead, forecasts suggest that the real estate market near Yongsan will become more competitive in conjunction with large-scale development projects such as the International Business District and Yongsan Park.
According to the Ministry of Land, Infrastructure and Transport and the maintenance industry on the 23rd, the announcement of the first phase of the lead underground railway project has been moved forward from the end of the year to as early as March. Previously, the ministry noted that it would announce the results of the first phase selection in the first quarter of this year once consultations with local governments that applied for the project had been completed. Additionally, it plans to accept further project proposals in May and establish a comprehensive plan for 'integrated development of underground railways' nationwide by the end of the year.
The Gyeongbu Line section between Yongsan Station and Seoul Station is the top priority for the underground project review. Although it is in the city center, it has been an area with significant resident inconvenience due to noise and vibration issues caused by the railway for a long time. The space above the underground line is expected to be developed into green areas and public facilities.
Professor Kim Jin-yu of the Department of Urban Transportation at Kyonggi University said, "The section between Seoul Station and Yongsan Station should be prioritized as it will become a central area in the future." He added, "Especially since the presidential office has moved to Yongsan, the development axis in the nearby area has been strengthened, making it appropriate to place Yongsan Station as a priority."
However, the ministry conveyed that nothing has been decided. A ministry official stated, "We plan to announce the lead project areas after receiving plans from local governments," adding, "There is no predetermined area for the lead project yet."
Meanwhile, in surrounding residential areas such as Ichon-dong in Yongsan, excitement is growing, and house prices in some areas are also showing an upward trend. Looking at the apartment sales prices in Seoul during the third week of January, as announced by the Korea Real Estate Board, 10 out of 25 districts exhibited an upward trend, with Yongsan District experiencing a 0.03% increase compared to the previous week, ranking second after Songpa (0.09%) in terms of the largest increase.
A representative from B Real Estate Office in Ichon 2-dong, Yongsan District, noted, "This neighborhood is divided by the railway, and even though it's the same area, many residents find it inconvenient to use the elevated road over the railway on foot, leading to a lot of complaints." They added, "Once the railway is underground, we expect to benefit greatly due to its proximity to the Han River."
Professor Kim stated, "While how to utilize the aboveground space after the underground railway project is important, the potential will increase compared to aboveground rail, and negative factors like noise and dust will disappear, allowing for expected increases in real estate prices."
However, the underground railway project requires a large budget, raising concerns about securing financial soundness and the speed of the project. Additionally, with many areas in Seoul requesting underground railway construction, prioritizing certain sections could lead to equity disputes. Professor Ko Jun-seok from Yonsei University's Sangnam Business School remarked, "How much the regulations on surrounding areas will be relaxed and the expected feasibility will prompt corporations to calculate the potential benefits." He added, "However, underground railway construction generally takes a long time, and it takes time to set up infrastructure in neighboring areas, so it may not act as an immediate boon for real estate."
He further emphasized, "Regardless of where the lead project site is decided, backlash from residents in other areas is anticipated. It is crucial to select lead sections based on accurate evidence to prevent such pushback."