Price of land continues gradual rise, data shows

Land prices in Korea grew 1.14 percent on average last year, the Ministry of Land, Infrastructure and Transport said yesterday.

According to the ministry, the cost of land has been relatively stable for the past six years, increasing less than the consumer price index (CPI). The ministry data shows that the CPI grew 1.3 percent in 2013.

Land prices in the Seoul metropolitan area increased 1.14 percent year-on-year in 2013, while property in other regions rose 1.3 percent. The ministry said land prices in the Seoul metropolitan area are recovering compared to 2012, when they advanced only 0.68 percent.

Sejong City saw the largest increase in land prices for the second consecutive year, with 5.5 percent growth in 2013. The city has been designated as the administrative center for the country, and the arrival of government agencies and new infrastructure has boosted land values, said the ministry.

Rounding out the top five areas with the largest increases were Hanam in Gyeonggi, Yecheon-gun in North Gyeongsang, and the Songpa and Gangnam districts in southern Seoul.

In contrast, Yongsan District, central Seoul, saw the largest drop at 2.11 percent year-on-year. The ministry cited the cancellation of the 31 trillion won ($27 billion) Yongsan International Business District and sluggish development in the Hannam-dong area.

The other top four regions with the largest price drops were Jung District, Incheon; Taebaek, Gangwon; Ganghwa County, Incheon; and Ongjin County, Incheon.

Meanwhile, the ministry said there were 2.24 million land transactions last year, up 9.6 percent from 2012.

By size, 1.82 billion square meters (449,731 acres) were traded, up 0.2 percent from a year earlier. Gyeonggi was the most active region, with nearly 450,000 transactions.

The ministry said transactions were boosted by the government’s real estate stimulus plans announced last April and August.

BY JOO KYUNG-DON [kjoo@joongang.co.kr]