Q2 Land Price Change Rate Records 0.11%
4-Month Increase Expansion Leads to First Half Rise
920,000 Parcels of Land Traded in First Half
The nationwide land price change rate, which had turned downward in the first quarter for the first time in 12 years, reversed to an upward trend in the second quarter. As a result, the nationwide land price change rate for the first half of the year also showed an increase. However, the growth was not significant, indicating that the real estate market remains under the influence of a downturn.
On the 25th, the Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board announced that the land price change rate for the second quarter of this year was 0.11%, up 0.16 percentage points from -0.05% in the first quarter. Accordingly, the total nationwide land price change rate for the first half of the year rose by 0.06%.
The land price change rate declined for three consecutive months from November last year (-0.03%), December (-0.04%), to January this year (-0.02%). However, it turned positive in March (0.01%) and continued to increase for four consecutive months in April (0.02%), May (0.04%), and June (0.05%).
Nevertheless, compared to previous years, the rate of increase has clearly diminished. The increase in the land price change rate for the first half of the year was 0.76 percentage points lower than the second half (0.82%) and 1.83 percentage points lower than the first half of last year (1.89%).
By region, the land price change rates in both the Seoul Metropolitan Area (0.89% → 0.08%) and other provinces (0.72% → 0.02%) were lower than those in the second half of last year.
By city and province, Jeju experienced the largest decline (-0.35%). This was followed by Ulsan (-0.16%), Daegu (-0.12%), Jeonbuk (-0.08%), Busan (-0.04%), Gwangju (-0.03%), Jeonnam (-0.02%), and Seoul (-0.01%), with these eight cities and provinces falling below the national average (0.06%).
The overall land transaction volume (including land attached to buildings) in the first half of this year was sluggish. The land traded in the first half amounted to 924,000 parcels (area of 717.8 km²), a decrease of 1.5% (15,000 parcels) compared to the second half of last year and a 27.3% decrease (346,000 parcels) compared to the first half of last year.
The volume of pure land transactions, excluding land attached to buildings, recorded approximately 375,000 parcels (669.1 km²), decreasing by 14.6% compared to the second half of last year and by 30.0% compared to the first half of last year.
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