[Graphics by Song Ji-yoon]
Land prices in Seoul are projected to rise by the fastest pace in 11 years this year on surging property prices and large urban development projects.
According to Korea Appraisal Board on Tuesday, Seoul’s land prices in October gained 5.02 percent from the beginning of the year, compared with the 4.32 percent increase over the same period last year. At the current rate, this year’s appreciation rates are expected to be the highest since 2007 when prices rose 5.88 percent.
Land prices in the Seoul metropolitan area have spiked 4.21 percent in October from the beginning of the year, the highest since the agency started compiling such data in 2012. Prices climbed 0.54 percent month-on-month in October, with Seoul and the Gyeonggi Province up 0.41 percent and Incheon up 0.42 percent.
Despite government efforts to cool the heated housing market, insatiable demand has sent Seoul property prices soaring, driving up the prices of land as well. Renovation of old apartment buildings has also helped lift prices.
Land prices in Yongsan and Seongdong districts of Seoul have jumped sharply in recent months following the announcements of urban renewal projects.
Land prices for the entire country rose 0.46 percent on month in October, up from the 0.43 percent increase in September and extending gains for the 96th straight month. Prices in October jumped 3.80 percent since early this year, compared with the 3.33 percent rise over the same period last year. The administrative capital city of Sejong saw the highest jump at 0.85 percent. Prices in Gwangju gained 0.58 percent, Daegu 0.48 percent and Busan 0.43 percent.
By Chu Dong-hun and Kim Hyo-jin
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]