Posted June. 21, 2008 04:59,
As the government has effectively given up its Grand Canal project, the price of land located along the watercourse of the canal has sharply fallen.
For example, the real estate market overheated in Yeoju County of Gyeonggi Province, Mungyeong City of North Gyeongsang Province, and Chungju City of North Chungcheong Province, where terminals were planned to be established. But as the government has halted the project, there is no longer any interest among people to invest in the areas.
According to realtors in Yeoju County, investors have suddenly stopped making calls and paying visits to buy land in Daeshin Village, the future site of a passenger terminal, and Jeomdong Village, where a freight terminal was expected to be built. After the presidential election late last year, the land price doubled from 50,000 won to 100,000 won per 3.3 square meters in the areas.
Similarly, no one is attempting to buy land nearby the Nakdong River, which covers Jungdong Village of North Gyeongsang Province, whose price soared at the beginning of this year. In that area, land price stood at 50,000-60,000 won per 3.3 square meters last spring. But, as the Grand Canal project was expected to run through the area, the land price soared to 150,000 won per 3.3 square meters in the autumn last year. Also, the number of real estate agencies increased to 10 in late 2007, up from one or two at the beginning of the year.
A real estate broker whose office is located in Jungdong Village said, Certainly, the land in Jungdong can be bought and sold without the approval of the government. As a result, a considerable part of the land had been bought by those living in Daegu and Gumi. Given the land price soared solely due to the Grand Canal project, many land owners will attempt to sell their land urgently.
Maseong, Mungyeong County in North Gyeongsang Province and Jangcheon, Chungju City in North Chungcheong Province are no different.
Hahm Yeong-jin at Real Estate Serve, a real estate information provider, said, The land market will further cool down due to the governments decision to stop the project. Investors who bought land located along the expected watercourse of the canal are highly likely to suffer loss.