National Standard Land Price Officially Announced Up 6.33%... Realization Rate Rises to 65.5%

Slightly Reduced Rate of Change Compared to Last Year
Somewhat Higher Level Compared to the 10-Year Average
Seoul 7.89%, Gwangju 7.60%, Daegu 6.80%
Total of 8,577 Opinions Submitted... Decrease from Previous Year

[Asia Economy Reporter Moon Jiwon] This year's 'Standard Land Official Price,' which serves as the benchmark for nationwide land prices, has risen by 6.33% compared to the previous year. Although the rate of change has somewhat decreased compared to last year, it rose relatively high, especially in Seoul (7.89%), leading to a slight increase in the standard land official price realization rate to 65.5%.

The Ministry of Land, Infrastructure and Transport announced on the 12th that it will disclose the prices of 500,000 standard land parcels as of January 1 this year on the 13th. The standard land official price serves as the basis for calculating individual official land prices for approximately 33.03 million parcels nationwide and is used as fundamental data for various taxes and charges such as property tax.

According to the Ministry, the rate of change in this year's standard land official price is 6.33% nationwide, down 3.09 percentage points from last year's 9.42%. However, it is somewhat higher compared to the average rate of change over the past 10 years (4.68%).

The standard land official price has gradually increased as follows: ▲2011 1.98% ▲2012 3.14% ▲2013 2.70% ▲2014 3.64% ▲2015 4.14% ▲2016 4.47% ▲2017 4.94% ▲2018 6.02%. Notably, last year it rose by 9.42%, marking the highest increase in 11 years since 2008 (9.63%).

By region, Seoul (7.89%), Gwangju (7.60%), Daegu (6.80%), and Busan (6.20%) showed relatively high increases. While Seoul and Busan experienced sharp increases of over 10% last year, the rate of change somewhat decreased this year. Nationwide, Ulsan recorded the lowest increase at 1.76%.

By usage, residential land (7.70%) increased more than the average (6.33%), while commercial land, which rose 12.38% last year, increased by 5.33% this year, showing a significant slowdown. Industrial land rose by 3.43%, farmland by 4.90%, and forest land by 4.06%.

The overall realization rate of the standard land official price rose by 0.7 percentage points to 65.5% compared to last year's 64.8%. Residential land increased by 1.1 percentage points to 64.8%, and the realization rates of farmland and forest land, which were relatively low, also improved somewhat.

During the viewing and opinion submission period for the standard land official price, a total of 8,577 opinions were submitted, including 2,477 from owners and 6,100 from local governments. This represents a 41.2% decrease compared to last year's 14,588 and is similar to the average over the past five years.

Among the submitted opinions, 270 cases (about 3%) deemed valid, such as changes in land characteristics and securing balance with nearby standard land, were reflected in the determined official prices.

The standard land official prices disclosed this time can be viewed on the Ministry of Land, Infrastructure and Transport website, the Real Estate Official Price Notification website, and the civil service offices of the respective cities, counties, and districts until the 13th of next month. During this period, objections can also be submitted online.

Objections received by the 13th of next month will be re-investigated and evaluated, and after re-deliberation by the Central Real Estate Price Public Announcement Committee, the final announcement will be made on April 10. The Ministry plans to pilot the disclosure of evaluation data for the Sejong City area to enhance transparency regarding real estate official prices.

This content was produced with the assistance of AI translation services.