Land Prices Rose 0.96% in Q4 Last Year... Trading Volume Increased by 8.3%

Land Prices Rose 0.34% in December Last Year... Similar to Same Month Previous Year

[Asia Economy Reporter Jo Gang-wook] The Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board announced on the 26th that land prices nationwide rose by 0.96% in the fourth quarter of last year, an increase of 0.01 percentage points compared to the third quarter (0.95%). Compared to the fourth quarter of the previous year (1.01%), it decreased by 0.05 percentage points.

The land price change rate in December last year was 0.34%, with the increase margin 0.02 percentage points higher than the previous month (0.32%), but it was at the same level as the same month of the previous year (0.34%).

By city and province, the Seoul metropolitan area (1.10% → 1.08%) showed a slight slowdown in the increase compared to the previous quarter, while the provinces (0.70% → 0.78%) expanded.

In the Seoul metropolitan area, the rates changed to 1.22% in Seoul, 0.95% in Gyeonggi, and 0.88% in Incheon, with Gyeonggi and Incheon showing levels lower than the national average (0.96%).

In the provinces, the change rates of five cities?Sejong 3.60%, Busan 1.24%, Daejeon 1.21%, Gwangju 1.04%, and Daegu 0.98%?were higher than the national average (0.96%).

By land use, residential areas recorded 1.06%, commercial areas 1.04%, green spaces 0.89%, planned management areas 0.84%, and agricultural and forestry areas 0.82%.

The volume of land transactions (including land attached to buildings) in the fourth quarter of last year was approximately 952,000 parcels (561.4㎢, about 0.9 times the area of Seoul), an increase of 8.3% (about 73,000 parcels) compared to the third quarter (about 879,000 parcels) and 12.6% compared to the fourth quarter of the previous year (about 845,000 parcels).

Quarterly transaction volumes decreased from 871,000 parcels in the first quarter of last year to 805,000 parcels in the second quarter, but after recording a high transaction volume of 365,000 parcels in July, it stabilized at around 250,000 parcels from August to October, and has shown a continuous increasing trend since November (309,000 parcels). The third quarter transaction volume was 879,000 parcels, and the fourth quarter recorded 952,000 parcels.

The volume of pure land transactions, excluding land attached to buildings, was about 316,000 parcels (510.4㎢), an increase of 17.0% compared to the third quarter and 18.9% compared to the same period last year.

By city and province, land transaction volumes increased in 14 cities and provinces including Gwangju (52.9%), Gyeongbuk (35.7%), Busan (35.0%), and Ulsan (30.1%) compared to the previous quarter. Pure land transaction volumes increased in 16 cities and provinces including Gwangju, Jeonbuk, Gyeongbuk, Gyeongnam, and Jeonnam.

The Ministry of Land, Infrastructure and Transport analyzed that both the rate of change in land prices and transaction volumes are on an upward trend, and stated that it plans to closely monitor the possibility of overheating in the land market and actively respond to any abnormal phenomena.

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