Capital New Town Selections Finalized

Geomdan of Incheon has been picked as the next new town in the Seoul metropolitan area which will soon be announced by the government.

A high ranking government official revealed on October 25, “The result of examination that looked at a number of likely places was that Geomdan new town was the most appropriate place for the next new town of the Seoul metropolitan area.”

“As long as no unexpected variable comes up during the final procedures for agreement among relevant ministries such as the Ministry of Finance and Economy and the Ministry of Construction and Transportation, [the government will] confirm that Geomdan new town is to be the new town of the metropolitan area and officially announce so around October 26 and 27,” he added.

Geomdan new town of Incheon will be constructed 5.48 million pyeong wide in and around Wondang-dong, Dangha, and Geomdan in west Incheon.

Incheon City has been promoting the development of this area as the new town since early last year and had made the application to the Ministry of Construction and Transportation this June, and it is expected that the development will gain speed.

Geomdan new city can be reduced to 4.5 million pyeong, excluding the existing Military Facilities Protection Area of 0.9 million pyeong in Geomdan new town area, depending on the result of negotiation with the Ministry of National Defense.

Provided the Geomdan new town is developed 5.48 million pyeong wide, it will support around 70,000 houses and a population of above 200,000.

The government plans to fix the development action plan of the Geomdan new town in 2008. Accordingly, the sales of apartments will open in 2010 and moving in will begin in 2013.

Meanwhile, with the rumor spreading that the Geomdan new town will be designated as the next new town of the Seoul metropolitan area, the price of houses has already jumped and the symptoms of speculation such as the unsold apartments being sold up instantly are appearing.

There are doubts as to whether the government will achieve the goal of stabilizing the price of houses, for the private specialists assess that site condition of Geomdan new city is not fit for absorbing the demand for housing in Seoul, and in the Gangnam area in particular.

Kim Hee-seon, the executive director of Budongsan 114, a real estate information provider, says, “It will be hard for Geomdan new city to absorb the demand for housing in the Gangnam area even after it is equipped with sufficient numbers of schools and other facilities due to its distance from Seoul. It should not be expected to stabilize the price of houses in the Seoul metropolitan area.”

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