1Q Nationwide Land Prices Rise 0.96%... Transaction Volume Down 11%

1st Quarter Nationwide Land Price Change Rate and Land Transaction Volume
Price Increase in the Capital Region Expands, Regional Areas Slow Down
Transaction Volume Decreases Mainly in Residential Land

(Data provided by the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board announced on the 25th that nationwide land prices in the first quarter of this year rose by 0.96% compared to the previous quarter. This is the same rate of increase as in the fourth quarter of last year (0.96%) and represents a 0.04 percentage point increase compared to the first quarter of last year (0.92%).

The land price increase rate in March this year was 0.34%, which is 0.03 percentage points higher than the previous month (0.31%) and 0.07 percentage points higher than the same month last year (0.27%).

In the metropolitan area (1.08%→1.11%), the rate of land price increase expanded compared to the previous quarter, while in the provinces (0.78%→0.72%), it slowed down.

In the metropolitan area, Seoul recorded 1.26%, Gyeonggi 0.97%, and Incheon 0.90% in order of highest increase. In the provinces, Sejong 2.18%, Daejeon 1.16%, and Daegu 1.00% showed high rates of change among three cities.

By land use zone, land prices increased in the order of residential areas 1.09%, commercial areas 1.00%, green areas 0.82%, agricultural and forest areas 0.79%, planned management areas 0.78%, and industrial areas 0.65%.

Land Transaction Volume Growth Rate by Province in Q1 2021 (Data provided by Ministry of Land, Infrastructure and Transport)

The volume of land transactions (including land attached to buildings) in the first quarter of this year was about 846,000 parcels (544.3㎢), a decrease of 11.1% (about 105,000 parcels) compared to the fourth quarter of last year (about 952,000 parcels).

The Ministry of Land explained, "At the beginning of this year, due to housing supply policies, interest rate hikes, and holding tax burdens, the buying demand decreased, leading to a decline in transaction volume centered on residential land compared to the previous quarter."

The volume of pure land transactions excluding land attached to buildings was about 316,000 parcels (500.8㎢), a 0.2% decrease compared to the previous quarter, but an 18.1% increase compared to the same period last year.

Compared to the previous quarter, land transaction volumes decreased in 13 cities and provinces including Busan (-46.6%), Ulsan (-45.5%), Gwangju (-43.0%), Daegu (-38.5%), and Gyeongnam (-20.5%).

The Ministry of Land stated, "We plan to continuously monitor trends in land prices and transaction volumes following government policy implementations and actively respond to any abnormal phenomena."

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