Along with the Rise of Housing Prices, Soaring Land Prices around the Country

Due to the lively real estate market last year, land prices also soared.

According to the `national land price fluctuation rates in 2001` which the Ministry of Construction and Transportation announced on the 30th, the rate of price increase for land last year was 1.32 percent, soaring from 0.67 percent in 2000.

Especially quarterly increase ratios compared to the previous quarter were 0.14 percent in the first quarter, 0.36 percent in the second, 0.29 percent in the third, and 0.54 percent in the last showing increasing range of the rise in prices.

The price rising rate on the land in Seoul last year was 1.89 percent, shooting up from 0.05 percent in 2000. While the land price rose in only 5 kus including Kangnam-ku and Songpa-ku in 2000, the land price rose in all 25 kus last year. The rising rate of land price in Mapo-ku was the highest with 3.49 percent due to the residential land development of Sangam area near the main stadium for the World Cup and the recovery of commercial lands from the opening of the subway line 6.

Among all the cities, kuns, and kus in the nation, the highest increase rate of land price was 10.03 percent in Chuncheon city in Kangwondo whose green belt was completely removed in December 2001. On the contrary, the land price of Dong-ku in Kwangju fell the most by 1.93 percent, because businesses shrank with the moving plan of the Southern Cholla province office.

Among cities and provinces, the rate of the price increase in Jeju-do is the highest with 3.13 percent due to the expectation for Jeju Free International City plan.

The MCT announced that the rise of land prices in residential areas around the Metropolitan area and major cities was caused by an inflow of capital into the real estate market due to low interest rates, increase of house prices, expectation raised by the announcement of plans to lift restrictions from the restricted development district, and large scale residential area development projects.

The rate of price increase in Ilsan-ku (2.84 percent) Koyang city in Kyonggi province, Yongin city (3.94 percent) and Osan city (2.45 percent) was higher than that of the national average due to the residential area development projects. On the contrary, the land price in Seocheon-kun (-0.09 percent) in Chungbuk province, Koesan-kun (0.56 percent) and Haenam-kun (-0.24 percent) in the Southern Cholla province fell or rose a little due to the decrease of demand for farming land and shrinking local businesses.

bonhong@donga.com