Seoul Standard Land Prices Rise 7.89%... Seongdong and Gangnam Districts 'Soar'

Land Price Increase Rate Significantly Slows Compared to Last Year
However, Development Benefits Reflected in Seongdong and Gangnam Districts

[Asia Economy Reporter Moon Jiwon] As of January 1 this year, the official land price of standard land in Seoul rose by 7.89% compared to the previous year. Although this rate of change significantly slowed down compared to last year's 13.87% increase, areas with high investment demand such as Seongdong-gu and Gangnam-gu still showed relatively high growth rates, rising more than 10% this year as well.

On the 12th, the Ministry of Land, Infrastructure and Transport announced that it will disclose the prices of 500,000 standard land parcels out of approximately 33.53 million nationwide land parcels subject to official announcement on the 13th.

According to the Ministry, the nationwide official land price of standard land rose by 6.33% this year, with Seoul recording a 7.89% increase. By autonomous district, only Seongdong-gu (11.16%) and Gangnam-gu (10.54%) showed a rate of change exceeding 10%.

In the case of Seongdong-gu, it appears that investment demand surged due to the demand for knowledge industry center development and expectations for redevelopment projects near station areas. Gangnam-gu's increase is analyzed to be driven by positive factors such as the construction of Hyundai Motor's new headquarters, the Global Business Center, the metropolitan complex transfer center, and development projects along Yeongdong-daero.

In addition, Dongjak-gu (9.22%), Songpa-gu (8.87%), Seocho-gu (8.73%), Yeongdeungpo-gu (8.62%), Seodaemun-gu (8.40%), and Nowon-gu (8.38%) also showed relatively high growth rates. Seodaemun-gu, Geumcheon-gu (7.31%), and Nowon-gu recorded higher growth rates than the previous year. This was influenced by active progress in various new towns and redevelopment projects.

However, compared to last year's very large increases centered on Gangnam-gu (23.13%), Jung-gu (21.93%), Yeongdeungpo-gu (19.86%), and Seongdong-gu (16.09%), this year's increase range has somewhat narrowed. Last year, the increase rate was high as the prices of land parcels exceeding 20 million KRW per square meter were intensively raised to improve the realization rate, which is the ratio of official price to market price.

By province, only Seoul, Daegu (6.80%), and Gwangju (7.60%) exceeded the national average, while most regions such as Busan (6.20%), Incheon (4.27%), Sejong (5.05%), Gyeonggi-do (5.79%), and Jeju (4.44%) showed lower rates of change than the average. In particular, Ulsan rose by only 1.76% this year, recording the lowest increase nationwide.

While the growth rate in local areas generally declined due to the economic downturn, popular regions such as Daejeon, Daegu, and Gwangju (called Dae-Dae-Gwang) still showed high growth rates. In the case of Daejeon (5.33%), the increase rate was lower than the average but higher than last year's (4.52%).

By city, county, and district, the official land prices of standard land in Ulleung-gun, Gyeongbuk; Seongdong-gu, Gangnam-gu, Mapo-gu, Yongsan-gu, Seoul; Bundang-gu, Seongnam, Gyeonggi-do; Yangyang-gun, Gangwon-do; Gwacheon-si, Gyeonggi-do; and Seo-gu, Daegu rose higher than the average. On the other hand, Buk-gu, Busan; Pyeongtaek-si, Gyeonggi-do; Jinan-gun, Jeonbuk; Gangjin-gun, Jeonnam; Daedeok-gu and Jung-gu, Daejeon showed rates of change below the average. Thirty-one regions including Yeoncheon-gun, Gyeonggi-do; Seosan-si, Chungnam; and Boeun-gun, Chungbuk saw price increases of less than 3%.

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