Korea’s land value increases at its lowest in 12.5 years, Seoul sees decline

[Photo by Yonhap]

The increase in land values nationwide in Korea in the first half of this year was the lowest in 12 years and 6 months on a semi-annual basis. Land values in Seoul experienced a reversal, showing a decline for the first time in 10 years and 6 months.

According to the nationwide land price increases and land transaction volume for the first half released by the Ministry of Land, Infrastructure and Transport on Tuesday, land values nationwide in the first half increased by 0.06 percent, down 0.76 percentage points from 0.82 percent in the latter half of last year, and down 1.83 percentage points from 1.89 percent during the same period last year.

This rise in land values marks the lowest level since the second half of 2010 when the figure stood at 0.059 percent.

Compared to the second half of last year, the fluctuation rates of land prices in the first half fell in both the metropolitan areas, down to 0.08 percent from 0.89 percent, and in other regions, down to 0.02 percent from 0.72 percent. By region, Jeju saw the largest decline in land values in the first half, with a negative 0.35 percent from 0.45 percent, followed by Ulsan with a negative 0.16 percent from 0.49 percent, and Daegu with a negative 0.12 percent from 0.82 percent.

Seoul’s land values increased by 0.75% in the second half of last year but declined by 0.01% in the first half of this year. The shift to a decline in Seoul’s land values over a half-year term is the first time since the second half of 2012 when the rate was a negative 0.05 percent.

Among the 250 cities and districts in the country, 152 regions had a land value fluctuation rate lower than the national average. Those regions include Seoul’s Seongbuk-gu with a negative 0.64 percent, Seodaemun-gu with a negative 0.61 percent, and Dobong-gu with a negative 0.56 percent.

On a quarterly basis, nationwide land values declined by 0.05 percent in the first quarter of this year but increased by 0.11 percent in the second quarter.

On a monthly basis, nationwide land values have risen for four consecutive months since March, reaching the level of October last year.

While the transaction volume is still on a downward trend compared to the previous term, the rate of decline has narrowed.

The total land transaction volume, including attached lands for buildings, was 717.8 square kilometers (km²) in the first half of the year, a 1.5 percent decrease from the second half of last year and a 27.3 percent decrease compared to the first half of last year.

The transaction volume of land alone, excluding those attached lands for buildings, also decreased by 14.6 percent to 669.1 km² compared to the second half of last year.

When comparing the first half of this year to the previous term, the total land transaction volume increased in eight regions, including Daegu with 26.4 percent, Daejeon 24.5 percent, and Seoul 23.3 percent. The figure decreased in nine regions, including Jeju with a negative 19.9 percent and South Gyeongsang Province with a negative 8.1 percent.

The transaction volume of land alone increased only in South Jeolla Province by 1.0 percent, while it decreased in 16 regions, including Gwangju with a negative 39.4 percent, Sejong a negative 37.8 percent, and Busan a negative 32.3 percent.