Gyeonggi-do Reports 5.51% Decline in Standard Land Prices This Year... Impact of Housing Price Crash and More

Gyeonggi Provincial Government Gwanggyo New Office Building

[Asia Economy (Suwon) = Reporter Lee Young-gyu] This year, the official land price of 69,140 standard land parcels in Gyeonggi-do fell by 5.51% compared to the previous year. This decline rate is lower than the national average decline rate of 5.92%.

Earlier, the Ministry of Land, Infrastructure and Transport announced on the 25th the official land prices of Gyeonggi-do, which were finalized after about six months of direct investigation and evaluation by appraisers belonging to the Korea Real Estate Board and appraisal corporations starting from August last year, along with hearing opinions from landowners and city/county/district offices, and deliberation by the Central Real Estate Appraisal Committee.

The official land price of standard land serves as a basis for calculating individual official land prices and compensation evaluations. Individual official land prices are used as standards for various tax assessments and imposition of charges.

By city/county, Dongducheon had the highest decline rate at 7.38%, followed by Gapyeong (7%), Yeoncheon (6.88%), Yangju (6.81%), and Uijeongbu (6.67%). The lowest decline rate was in Hanam City at 4.38%. There was no area where prices increased compared to the previous year.

The cause of the decrease was analyzed to be due to the recent decline in housing prices and the government's adjustment of the realization rate (the ratio at which the official land price reflects the actual market price).

The province explained that it calculated this year's official land price by applying the 2020 realization rate (65.4%) to the market price survey data. Meanwhile, the 2022 realization rate was 71.4%. This measure was taken to reduce the burden of real estate holding tax in 2023, considering the difficult economic conditions.