[비즈한국] Deogyang-gu borders Seoul and has been a vital transportation hub since the Joseon Dynasty. It includes the Wondang area, which was once the heart of Goyang-gun, where long-standing historical heritage coexists with newly developed new towns. In particular, following its elevation to city status, Goyang City has seen full-scale urban development, establishing Deogyang-gu as a core residential area in the Seoul metropolitan region.
The modern development of Deogyang-gu can be divided into three major periods: the first-generation Hwajeong District development in the mid-1990s, the second-generation Samsong New Town development in the 2010s, and the current third-generation Changneung New Town development, which is awaiting its main subscription phase. This phased development has turned Deogyang-gu into a region of continuous growth, and investment strategies need to vary according to each period.
1st Generation: Hwajeong District – Investment in Existing and Reconstructed Housing
Developed in the mid-1990s, the Hwajeong District has established itself as a representative residential area of Deogyang-gu. The transportation network centered around Hwajeong Station is well-established, and the residential environment has significantly improved with the arrival of large-scale commercial facilities and public institutions nearby.
However, many apartment complexes in the Hwajeong District have aged as more than 20 years have passed since move-in. Consequently, apartment complexes with potential for reconstruction are drawing attention. Recently, as discussions regarding the application of the Special Act on the Improvement of Aged Planned Cities have begun, there is a high possibility that remodeling and reconstruction projects will be actively pursued. Therefore, a strategy of purchasing older apartments in the Hwajeong District to aim for long-term reconstruction or remodeling appears effective.
2nd Generation: Samsong New Town – Investment in Undervalued Semi-New Housing
Samsong New Town was developed in full force during the 2010s, elevating the real estate value of Deogyang-gu to the next level. This new town, formed around Samsong Station and Wonheung Station, boasts excellent accessibility to Seoul, and its living infrastructure is superb, with large shopping malls like Starfield Goyang, IKEA, and Lotte Outlet located in the vicinity.
However, Samsong New Town remains an undervalued area. While it has excellent accessibility to Seoul, it is evaluated as relatively lacking in commercial and cultural facilities compared to the existing Hwajeong District. Yet, this undervaluation can act as an investment opportunity. Many semi-new apartment complexes in Samsong have seen occupancy completed within the last few years, and demand for owner-occupancy is steadily increasing; there is a strong potential for price appreciation if accessibility to Seoul is further emphasized in the future.
In particular, the value of Samsong New Town is likely to be reassessed with the opening of the GTX-A line. If the transportation network improves in the future, it is expected that prices in Samsong New Town will not lag significantly behind some areas of Seoul. Therefore, now may be a good opportunity to purchase undervalued apartments in the Samsong area.
3rd Generation: Changneung New Town – Pre-emptive Investment in a New Town
Changneung New Town is an area being developed as part of the government’s 3rd-generation new town policy and is currently awaiting its main subscription. With its location close to Seoul, Changneung New Town is planned as a large-scale residential and commercial complex, and it is expected that accessibility to Gangnam and major downtown areas will be drastically improved with the establishment of the GTX-A Changneung Station.
Currently, Changneung New Town is in the early stages of subscription, so prices are relatively low. However, once move-ins begin after the main subscription, real estate prices in the area are likely to surge. In particular, Changneung New Town is expected to lead the balanced development of all of Deogyang-gu by connecting with the existing Hwajeong and Samsong areas.
Changneung New Town has a high potential to grow into a core residential area in the Seoul metropolitan region according to government plans. Therefore, prospective owner-occupiers currently considering subscriptions should prioritize reviewing Changneung New Town. Furthermore, as initial investment costs are likely to be low for a period after the main subscription, it can also be an attractive opportunity for investors aiming for short-term capital gains.
Deogyang-gu is continuously developing around three axes: the Hwajeong District, Samsong New Town, and Changneung New Town. It is a region where various investment strategies are possible, ranging from the reconstruction potential of older apartments to the growth potential of undervalued semi-new apartments and pre-emptive investment in new towns.
In particular, the opening of the GTX-A line, in line with the government's plan to expand the transportation network in the metropolitan area, is expected to act as a significant positive factor for the entire Deogyang-gu real estate market. Accordingly, it is important to establish long-term investment strategies centered on areas where transportation networks and infrastructure are improving.
Once Changneung New Town begins full-scale occupancy in the future, the residential environment in Deogyang-gu will further improve, and the real estate value of the entire district is highly likely to rise. Thus, now may be the optimal time to invest in Deogyang-gu.
In conclusion, Deogyang-gu is growing into a key residential hub in the northwestern part of the Seoul metropolitan area, passing through the development stages of the 1st-generation Hwajeong District, 2nd-generation Samsong New Town, and 3rd-generation Changneung New Town. With continuous development and infrastructure expansion, it is a place to look forward to even more ten years from now.
Kim Hak-ryeol, the head of the Smart Tube Real Estate Research Institute and famous by his pen name "Pashong," previously served as the team leader of the Real Estate Research Division at Gallup Korea. He operates and hosts the Naver blog "Pashong's World Exploration" and the YouTube channel "Stue TV." His books include "The Power of Gyeonggi-do Real Estate (2024)," "The Absolute Principles of Seoul Real Estate (2023)," "The Future of Incheon Real Estate (2022)," "Kim Hak-ryeol's Absolute Principles of Real Estate Investment (2022)," "The Future Map of South Korean Real Estate (2021)," "From Now On, Only Places That Will Rise, Rise (2020)," and "The South Korean Real Estate User Manual (2020)."