The Korea Land and Housing Corporation (LH) has reported that nearly half of the public land it offers remains unsold. Despite significantly reducing the amount of new land supply and easing contract terms, including interest-free installment payments, the number of lots unsold for over a decade has surpassed 700.
According to data submitted by Kim Jong-yang, a member of the National Assembly's Land, Infrastructure and Transport Committee, the unsold rate for LH's public land supply announcements last year was 45%, with 10 out of 22 lots failing to sell. The unsold rate has remained high, increasing from 3% in 2021 to 41% in 2022, 27% in 2023, and reaching 56% in 2024.
The new land supply has also sharply declined. The number of lots announced by LH dropped from 81 in 2022 to just 22 last year, a decrease of 72.8%. During the same period, the total value of announced land also fell from 6.558 trillion won to 1.9952 trillion won, a 69.6% reduction. As of August this year, only one lot has been announced for supply. LH attributed this decline to a sluggish real estate market and rising construction costs affecting project viability.
To promote land sales, LH has relaxed financial and contract conditions. Of the 40.4 trillion won in land supply contracts signed from 2023 to May this year, 9.5 trillion won (23.5%) were interest-free installment agreements. Additionally, contracts under the land return system, which allows buyers to cancel under certain conditions and receive their deposit back, amounted to 646.8 billion won.
Nevertheless, as of July this year, there are still 707 lots that have not been sold for over a decade, with a total supply value of 3.4491 trillion won. By land use, this includes 82 lots for neighborhood facilities, 79 lots for residential use, 73 lots for general industrial use, 69 lots for general commercial use, and 55 lots for parking.
Regionally, among the 100 long-unsold lots in the Seokmun National Industrial Complex in South Chungcheong Province, 57 are designated for general industrial use, while in Yeongjong, Incheon, 30 out of 56 lots are for neighborhood facilities and general commercial use.
Kim stated, "The accumulation of land that has not found owners for over ten years in industrial complexes and local areas is a warning that the local construction and real estate market has reached its limits. The Lee Jae-myung administration's regulation-heavy real estate policies have failed to control housing prices in the metropolitan area while undermining the local economy and housing supply foundation."
* This article has been translated by AI.
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