Amid a continued transaction freeze and contraction in the housing market, the land market also saw a significant decline in transaction volume in the first half of this year.
The Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board announced on the 25th that the total land transactions (including land attached to buildings) in the first half of 2022 amounted to approximately 1.271 million parcels (966.3㎢), a decrease of 18.2% (about 282,000 parcels) compared to the second half of 2021 (about 1.553 million parcels). Compared to the first half of 2021 (about 1.744 million parcels), it decreased by 27.1% (about 473,000 parcels).
Pure land transactions, excluding land attached to buildings, were about 535,000 parcels (897.4㎢), down 9.8% from the second half of 2021 and 18.3% from the first half of 2021.
By region, compared to the second half of 2021, total land transactions decreased in 15 metropolitan cities and provinces, including Daegu (-39.4%) and Busan (-27.3%). Jeju (0.7%) and Jeonbuk (0.1%) saw slight increases.
Pure land transactions decreased in all 17 metropolitan cities and provinces, including Gwangju (-37.4%), Daegu (-19.9%), and Daejeon (-18.8%).
By land use zone, residential areas decreased by 25.4%, commercial areas by 21.6%, and green areas by 14.1%. By land category, paddy fields decreased by 22.6%, forest land by 18.3%, and factory sites by 17.5%.
By building use, residential decreased by 25.5%, industrial by 24.8%, and commercial/business by 20.5%.
Along with the decrease in transaction volume, the rise in land prices has also slowed.
In the first half of 2022, nationwide land prices rose by 1.89%, down 0.22 percentage points from the second half of 2021 (2.11%) and 0.13 percentage points from the first half of 2021 (2.02%).
The land price change rate in the second quarter of this year was 0.98%, a 0.07 percentage point increase from the previous quarter (0.91%), but 0.07 percentage points lower than the same period last year (1.05%).
By region, the land price change rate in the first half of this year slightly contracted in both the metropolitan area (from 2.41% to 2.12%) and other regions (from 1.61% to 1.51%) compared to the second half of 2021.
In the metropolitan area, Seoul (from 2.63% to 2.29%), Gyeonggi (from 2.21% to 1.99%), and Incheon (from 2.19% to 1.77%) all saw a decrease in the rate of increase compared to the second half of 2021.
The Ministry of Land, Infrastructure and Transport stated, "We plan to closely monitor trends in land prices and transaction volumes going forward and actively respond to any abnormal phenomena."
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