Housing Regulation Balloon Effect... Last Year's Pure Land Transactions Reach Record High

[Asia Economy Reporter Kim Min-young] Last year, the volume and value of pure land transactions nationwide, excluding cases where land and buildings were traded together, reached record highs.

According to an analysis of the land transaction status statistics by the Korea Real Estate Board on the 20th, the volume of pure land transactions nationwide last year was recorded at 1,248,084 cases (parcels). This is the highest annual figure since related statistics began to be compiled in 2006.

The transaction volume statistics compiled by the Real Estate Board are based on the reporting date and include all types of transactions such as share transactions, sales, gifts, exchanges, and judgments.

Nationwide pure land transaction volumes ranged between 900,000 and 1,000,000 cases from 2006 to 2014, increasing to around 1.1 million cases from 2015 to 2017.

In 2018 and 2019, the volume decreased for two consecutive years, falling back to around 1 million cases, but in 2020 (1,130,569 cases) and last year (1,248,084 cases), record highs were consecutively broken.

Last year, the total land transaction volume nationwide, including land attached to buildings, was approximately 3,296,622 cases, a 6.0% decrease from the previous year; however, during the same period, pure land transaction volume increased by 10.4%.

The boom in land transactions is believed to be due to investors turning their attention to land amid strong housing regulations, as well as a flood of development-related favorable issues including transportation.

By region, last year Gyeonggi-do recorded 317,838 pure land transactions, surpassing 300,000 cases for the first time. This was the highest among the 17 cities and provinces nationwide.

The proportion of Gyeonggi pure land transactions to the total reached a record high of 25.5% last year. This means that more than one out of every four pure land transactions last year took place in Gyeonggi-do.

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