As the Wirye Line tram (streetcar) running through the Wirye new town recently began trial runs, home prices in nearby complexes are stirring. There is also a sense of renewed momentum for tram projects that had been stalled for years in places such as Dongtan in Hwaseong, Gyeonggi, and Songdo in Incheon. Still, some say buyers should avoid purchasing real estate based solely on the possibility of tram openings, as each line faces many variables.
According to the industry on the 20th, the Wirye Line tram has been conducting trial runs from the 19th to Oct. 31. Running north to south through the Wirye new town, the Wirye Line tram operates over a 5.4-kilometer section connecting Macheon Station on Subway Line 5 with Bokjeong and Namwirye stations on Line 8. After the trial runs, the goal is to complete commercial trial operations and comprehensive inspections in November and officially open by year-end.
As the opening of the Wirye Line tram becomes more tangible, home prices near the stops are rising. In the trial runs, the tram stops at Wiryebyeol Station; near there, in Jangji-dong, Songpa District, the 84-square-meter unit at Songpa Kumegreen Wirye Complex 24 set a record high at 2.12 billion won on Dec. last year and reset the record at 2.15 billion won on the 19th of last month. A 59-square-meter unit in the same complex also set a record at 1.7 billion won on the 16th of last month. At e-Pyeonhansesang Songpa Park Central, which offers access to both the Wirye Line and Line 5, an 84-square-meter unit hit a record at 1.915 billion won on the 6th of last month, and a 59-square-meter unit reached 1.8 billion won on the 4th of last month.
With trams reappearing in Korea after having disappeared, other regions are moving to revive long-stalled tram projects. Hwaseong, Gyeonggi, recently restarted bidding for the Dongtan tram project. On the 29th of last month, it analyzed key issues and risk factors raised during the project process, improved bidding conditions, and asked the Public Procurement Service to place the construction order and handle the contract.
The Dongtan tram project had faced the risk of being scrapped. DL E&C, the sole bidder for Phase 1 of the Dongtan urban rail construction, withdrew from the project on Dec. 29 last year. At the time, DL E&C cited factors such as the work schedule and project execution conditions, and the negotiated contract procedure ended. In response, Hwaseong lowered the bar for builder participation by improving bidding conditions for a month after the contract ended. Buoyed by these favorable developments, a 102-square-meter unit at Dongtanyeok Lotte Castle, considered the flagship apartment of the Dongtan new town, reset its record at 2.23 billion won on the 31st of last month. That is more than 400 million won higher than the same period last year.
The long-delayed Songdo tram project in Incheon will also make another attempt at the government's preliminary feasibility study, as the city of Incheon plans to redesign the entire project. The city is set to begin a one-year re-planning service for the Songdo tram next month, and once the work is completed, it is expected to apply for a preliminary feasibility study to the Ministry of Land, Infrastructure and Transport in the second half of next year. The Songdo tram is an internal figure-eight loop that starts at Songdo Moonlight Festival Park Station on Incheon Subway Line 1, passes through University of Incheon Station, Campus Town Station, and Knowledge Information City Station, and returns to the starting point. The total length is 25.18 kilometers.
However, the industry analyzed that most of these projects are adrift due to feasibility issues, so caution is needed for related investments. An industry official said, "As time keeps slipping from planning to groundbreaking, prices for materials and exchange rates have surged, and no builder is eager to step in," and added, "For the Wirye Line tram, overlapping with nearby park construction raises the possibility of the opening being delayed to next year. With so many variables, investors should avoid deciding on real estate purchases based on tram-related 'good news' alone."