National Land Prices Fall for the First Time in 12 Years in Q1... Land Transactions Also Drop Below 450,000 Parcels

In the first quarter of this year, nationwide land prices fell by 0.05%. This marks the first quarterly decline in land price change rates in 12 years since the third quarter of 2010 (0.05% decline). The volume of land transactions also fell below 450,000 parcels for the first time in about 12 years.

According to the nationwide land price change rate and land transaction volume for the first quarter of 2023 announced by the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board on the 25th, nationwide land prices fell by 0.05% in the first quarter of this year. This is a decrease of 0.09 percentage points (p) compared to the land price change rate of 0.04% in the fourth quarter of last year, and a decrease of 0.96 percentage points compared to the 0.91% change rate in the first quarter of last year.

By region, the land price change rates declined in both the Seoul Metropolitan Area (0.00% → -0.06%) and other provinces (0.12% → -0.03%). Among metropolitan municipalities, six cities and provinces including ▲Jeju (-0.13% → -0.29%) ▲Daegu (0.15% → -0.13%) ▲Seoul (-0.18% → -0.12%) ▲Ulsan (0.03% → -0.10%) fell below the national average (-0.05%).

In Seoul, areas such as ▲Seodaemun-gu -0.52%, ▲Seongbuk-gu -0.49%, ▲Dongdaemun-gu -0.45%, ▲Gangseo-gu -0.42%, and ▲Jungnang-gu -0.41% recorded declines below the national average.

The total land transaction volume (including land attached to buildings) in the first quarter was approximately 432,000 parcels. This represents a decrease of 5.8% compared to the previous quarter and a 30.1% decrease compared to the same period last year.

Excluding land attached to buildings, the pure land transaction volume was about 185,000 parcels, down 17.9% from the fourth quarter of last year and 29.9% compared to the same period last year.

By region, total land transaction volume increased in four cities and provinces compared to the previous quarter: ▲Seoul 27.2%, ▲Daejeon 16.1%, ▲Sejong 4.1%, and ▲Jeonnam 0.1%, while the remaining 13 cities and provinces saw decreases. During the same period, pure land transaction volume decreased in 16 cities and provinces including ▲Gwangju -52.3%, ▲Daejeon -37.1%, ▲Busan -35.8%, and ▲Jeju -33.6%, except for Jeonnam (1.8%) which saw an increase.

By land use zone, land category, and building use, green areas fell by 30.1%, paddy fields by 20.8%, and other buildings also decreased by 26.6%.

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