Winter Olympics hoist land prices in PyeongChang

By Kim Tae-gyu

In about six and a half years PyeongChang will host the Winter Olympics and the effects are already evident in the rising prices in surrounding real estate.

The Ministry of Land, Transport and Maritime Affairs (MLTM) said Monday that the average land prices of PyeongChang jumped 0.86 percent last month compared to June.

The appreciation marked the highest in the country where the month-on-month rise was 0.1 percent. In Seoul the rate was a mere 0.07 percent.

``Expectations seem to run high that PyeongChang and its vicinity will be developed with infrastructure and various facilities for the Winter Olympics,’’ an MLTM official said.

``And the trend has spread to adjacent areas such as Wonju and Gangneung where land prices increased by far more than the country’s average.’’

Located some 40 kilometers west of PyeongChang, Wonju saw land prices rise 0.32 percent in July from a month before as the city is expected to enjoy investment thanks to the Winter Games.

Situated about 40 kilometers east of PyeongChang, Gangneung benefited from the 0.31-percent rise of land prices as some of the facilities will be constructed in the region.

Gangwon Province has designated PyeongChang as a special area. Accordingly, anybody who wants to buy or sell land there will have to receive permission from the authorities in advance.

PyeongChang was picked by the International Olympic Committee as the 2018 host of the Winter Olympics in July against Munich in Germany and Annecy of France.

Included as the immediate beneficiary of PyeongChang’s successful bid is the Alpensia Resort, where the main stadium is located.

Events such as the ski jump and biathlon will be held at facilities inside or around the resort.

Five million square meters of land in and around PyeongChang have been dedicated to host the winter sports festival. Even acres of forest previously protected for environmental reasons are to be sacrificed.

Elsewhere in the nation, the MLTM said that land transactions shrank in July in line with the moribund market for apartments and houses in the wake of the global financial unrest.

Last month, 167 million square kilometers of land changed hands, down 1.3 percent from a month before even though average values rose 0.1 percent.