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Yangsan City Accelerates the Jungsan District Urban Development Project
Yangsan City is officially starting the 'Jungsan District Urban Development Project'. Recently, the Jeil Construction Consortium was selected as the preferred negotiating party, and the Yangsan mayor revealed the vision of this project at a press conference.
The Jungsan District is the last large-scale development area planned within Yangsan New Town, with a total investment of 833.1 billion won. This project aims to develop large-scale facilities, including 7,069 multi-family and single-family homes, an elementary school, a kindergarten, a library, and a complex community facility on an area of 800,000㎡.
Through this development, Yangsan City aims to achieve a planned population of 480,000 by 2040 and is expected to establish itself as a hub for future growth.
Jeil Construction Consortium's Business Specialization Strategy
This project is led by Jeil Construction, with a total of three companies participating, including Korea Investment & Securities. Korea Investment & Securities aims to strengthen stability through financial investment, while Jeil Construction plans to minimize long-term risks by directly purchasing 72% of the land to be developed.
Notably, around 29% of the area in the Jungsan District is planned to be developed as parks and green spaces. Therefore, various green infrastructures, such as a 100,000㎡ lakeside park and a 50,000㎡ urban agriculture park, are set to be established. These efforts are expected to have a positive impact on the local community.
All profits generated from private investment will be returned to the public to create pedestrian overpasses and specialized facilities connected to Hwangsan Park. This strategy aims to develop the area into a representative eco-friendly landmark.
Business Promotion Schedule and Sale Outlook
Yangsan City plans to sign an agreement within this year and complete the designation of the project implementer by 2026. Following that, the permission process will begin in 2027, construction is set to start in 2028, and completion is aimed for 2032.
However, apartment sales are expected to take place between 2032 and 2033, after the completion of land development, with move-ins starting in earnest after 2035. Given that this is a long-term project, various factors such as economic changes, interest rate fluctuations, and population demand are likely to have an impact.
Recent Market Price of Mulgeum Apartments
To predict the sales price of the Jungsan District, it is essential to examine the market prices of nearby Mulgeum New Town. According to the recent actual transaction prices released by the Ministry of Land, Infrastructure, and Transport and real estate platforms, various 84㎡ units completed after 2010 are showing transaction prices exceeding 300 million won. This serves as important reference material for assessing the value of new apartments.
Easy The One 5th phase is an apartment completed in 2017, with a exclusive area of 84.91㎡ and a recent transaction price of 375 million won.
Daebang Nobleland 1st phase was completed in 2014, with the same area (84.94㎡) recently trading for 320 million won.
The Yurim Norway Forest is an apartment completed in 2018, with an exclusive area of 84.63㎡ recently trading for 496 million won.
Additionally, Daebang Nobleland 8th phase Royal County was completed in 2018, with an exclusive area of 84.98㎡ trading for 510 million won.
This data indicates that the average market price for 84㎡ apartments built in Mulgeum-eup since 2010 ranges from mid 300 million won to 500 million won.
Development Effects and Risks
The urban development project in Jungsan District is not just about creating housing, but also has the potential to expand education and cultural infrastructure, leading to overall development of Yangsan City. This is expected to activate the local economy, create jobs, and improve transportation networks.
However, this project has challenges to address, including uncertainties regarding the population growth target for 2040, risks associated with the long duration of the project (over eight years), environmental and transportation burdens, transparency issues regarding the execution of public contributions, and potential conflicts with existing residents. How these issues are resolved will determine the project's future success.
Conclusion
The urban development project in Yangsan Jungsan District aims for completion in 2032, with move-ins expected to start from 2035. Considering that apartments in Mulgeum New Town of 84㎡ are trading in the range of mid 300 million won to 500 million won, it is likely that the new sale prices in the Jungsan District will be set higher than this. Thus, attention must be paid to future trends in the housing market.
Even if the urban development project is targeted for completion in 2032, it is anticipated that it will take at least 10 years before actual move-ins occur in the Jungsan District. This becomes clearer when considering the various procedures such as land sales, apartment licensing, and construction and sales.
As seen in recent local new towns like Eco Delta, it is also important to note that the market is currently facing difficulties due to unsold units caused by high sale prices.
In conclusion, the development of Jungsan District is a significant project that will determine Yangsan's future urban competitiveness. However, its outcome may vary significantly depending on market demand, economic conditions, and policy support. Therefore, a long-term perspective and cautious approach are essential.
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Frequently Asked Questions (FAQ)
Q. What does the Jungsan District Urban Development Project entail?
Yangsan Jungsan District is a large-scale urban development project valued at 833.1 billion won, creating 7,069 housing units and educational/community facilities.
The Jungsan District Urban Development Project is the last large-scale development area within Yangsan New Town, covering an area of 800,000㎡, including 7,069 multi-family and single-family homes, an elementary school, a kindergarten, a library, and a complex community facility. A total investment of 833.1 billion won is planned, aiming to achieve a population of 480,000 in Yangsan City by 2040 and foster a hub for future growth.
Q. What is the leading company and its strategy for this project?
The project is led by the Jeil Construction Consortium, which has developed a strategy to minimize risks through direct land purchases and green space development.
The project is centered around Jeil Construction, with support from three companies, including Korea Investment & Securities, to enhance financial stability. Jeil Construction plans to directly purchase 72% of the land for development to reduce long-term risks, with around 29% of the area designated as parks and green spaces. Plans also include constructing eco-friendly infrastructures, such as a 100,000㎡ lakeside park and a 50,000㎡ urban agriculture park.
Q. What is the schedule for the project and the estimated timing for apartment sales?
The agreement will be signed within this year, the project implementer will be designated in 2026, completion is expected in 2032, with sales from 2032 to 2033 and move-in anticipated after 2035.
Yangsan City plans to designate the project implementer by 2026 and proceed with permissions in 2027, starting construction in 2028, aiming to complete by 2032. Apartment sales are expected to occur in 2032 to 2033 after land development is finished, with move-ins projected to start after 2035. As this is a long-term project, various factors such as economic fluctuations, interest rates, and population demand will influence it.
Q. What is the current market price status of apartments near Mulgeum New Town?
84㎡ apartments are trading between 300 million and 500 million won, serving as a reference for sales prices in the Jungsan District.
Based on recent actual transaction prices from the Ministry of Land and real estate platforms, 84㎡ apartments constructed in Mulgeum New Town after 2010 have frequently traded above 300 million won. Easy The One 5th phase is trading at approximately 375 million won, Daebang Nobleland 1st phase at 320 million won, Yurim Norway Forest at 496 million won, and Daebang Nobleland 8th phase Royal County at 510 million won.
Q. What are the expected benefits and issues of the urban development project?
The expected benefits include regional development and economic activation, while challenges remain with population uncertainties, long-term risks, and environmental burdens.
The development of the Jungsan District is expected to bring improvements in education and cultural infrastructure, job creation, and transportation network enhancements, contributing to various facets of development. However, challenges such as uncertainties regarding the 2040 population growth targets, risks from the long-term duration of the project, concerns about environmental and traffic issues, transparency regarding public contributions, and potential conflicts with existing residents remain to be addressed.