Average land prices fell in commercial and residential areas as of Jan. 1 for the first time in three years amid the deepening recession, with 97 percent of around 24,000 locations showing price declines, the government said March 23.

The nationwide average of commercial land prices posted a year-on-year drop of 4.7 percent while residential land prices fell an average of 3.2 percent, the Land, Infrastructure, Transport and Tourism Ministry said.

The global recession, exacerbated by the collapse of Lehman Brothers Holdings Inc. in September, dragged down land prices in major cities, ending an upward trend.

With declining investment in the real estate market, particularly in major cities, due to the global financial crisis, land prices are likely to stay in the doldrums for some time amid increased office vacancy rates and persistently weak demand for condos, analysts said.