National Land Prices Rise 1.05% in Q2... Transaction Volume Increases 6.1%

Sejong Land Price Increase Rate 1.79%... Ulsan Transaction Volume Up 27.6% Compared to Previous Quarter

[Asia Economy Reporter Kangwook Cho] National land prices rose by 2.02% in the first half of this year. This is an increase of 0.30 percentage points compared to the first half of last year (1.72%) and 0.10 percentage points compared to the second half of last year (1.92%).

The Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board announced on the 25th that the nationwide land price increase rate in the second quarter of this year was 1.05%, up 0.09 percentage points from the previous quarter (0.96%) and 0.26 percentage points from the second quarter of last year (0.79%).

Both the Seoul metropolitan area (1.11% → 1.19%) and other regions (0.72% → 0.80%) saw an increase in land price change rates compared to the previous quarter.

In the Seoul metropolitan area, Seoul (1.34%) and Gyeonggi (1.07%) showed levels higher than the national average (1.05%). Incheon rose by 0.96%.

In other regions, the change rates in three cities?Sejong (1.79%), Daejeon (1.21%), and Daegu (1.11%)?exceeded the national average.

By land use zone, residential areas increased by 1.15%, commercial areas by 1.15%, green spaces by 0.90%, planned management areas by 0.88%, industrial areas by 0.81%, and agricultural and forest areas by 0.79%.

The volume of land transactions (including land attached to buildings) in the second quarter was approximately 898,000 parcels (617.6㎢), up 6.1% from the first quarter (846,000 parcels) and 11.5% from the second quarter of last year (805,000 parcels).

The volume of pure land transactions, excluding land attached to buildings, was about 339,000 parcels (567.5㎢), an increase of 7.4% from the previous quarter and 22.6% from the same period last year.

The Ministry of Land explained that pure land transaction volume showed a declining trend at the beginning of the year, increased mainly in farmland near development project sites in March, and then slightly decreased again after April.

By city and province, land transaction volumes increased in 12 cities and provinces compared to the first quarter, including Ulsan (27.6%), Gyeongnam (20.0%), Incheon (19.3%), Busan (18.9%), and Jeju (15.9%).

Pure land transaction volumes increased in 14 cities and provinces, including Daejeon (28.4%), Jeju (26.4%), Seoul (20.7%), Gwangju (17.1%), Gangwon (14.2%), and Chungnam (12.0%).

The Ministry of Land plans to closely monitor trends in land prices and transaction volumes following government policy implementations and actively respond to any abnormal phenomena.