The increase rate of public housing prices in Seoul and nationwide this year is lower than last year

Reflecting the recent decline in apartment prices
Initially expected to rise by around 30%, it was lowered to less than 20%.
Party and government plan to freeze property tax at last year’s level

Comprehensive real estate tax bill[연합뉴스]

It was found that this year’s public housing price was lower than last year’s level. This is a result different from the initial expectation that it will far exceed the national average growth rate (19%) last year. This seems to be because the trend of declining apartment prices since November of last year was reflected.

According to the National Assembly and government departments on the 13th, it was confirmed that the rate of increase in the publicly announced price of apartment houses (apartments, tenements, and multiple households) this year, which the government will release on the 22nd, is lower than last year in Seoul and nationwide standards. Last year, the publicly announced price of apartment houses rose by 19.05% on average nationwide and by 19.89% in Seoul.

Initially, the real estate market predicted that the increase rate of the listed price this year would exceed the level of last year and reach 20-30%. In particular, some even predicted that the percentage would exceed 30% in Seoul. This is because apartment prices across the country and in Seoul, surveyed by the Korea Real Estate Agency last year, have more than doubled compared to the previous year, and the realization rate of published prices has also increased compared to last year.

In February, the Seoul Tax Reform Advisory Group predicted that “Considering that apartment sales prices increased by 14.1% last year doubled from the previous year, Seoul’s public housing prices will rise by more than 30% compared to last year, increasing the ownership tax burden.” also presented

However, as the Korea Real Estate Agency completed the investigation and calculation of the actual transaction price by January of this year, the decrease in the actual transaction price since November of last year was actively reflected in the published price. Both the National Assembly and the government officials said, “Although apartment prices continued to rise until October of last year, the number of cases of declines in actual transaction prices increased from November and stabilized downward. explained that

Last year, the real transaction price index for apartment complexes in Seoul continued to rise until October. The cumulative increase rate from January to October was 16.28%. However, in November and December, the actual transaction price index turned to a downward trend, and the annual increase rate was slightly lowered to 14.22%.

━

Gyeonggi-Incheon with a possibility of approaching 30%

On the other hand, in Gyeonggi and Incheon, where apartment prices soared last year, the rate of increase in official prices has exceeded the level, raising the possibility that it may reach 30%. Last year, Gyeonggi Province and Incheon recorded an increase of 23.94% and 13.6%, respectively.

Last year, Gyeonggi-do’s actual transaction price index rose by 29.83%, exceeding the level of the previous year (23.7%). In particular, Incheon’s real transaction price index rose by 33.3% last year, 2.4 times higher than the previous year (13.83%).

A cluster of detached houses in Pyeongchang-dong, Jongno-gu, Seoul.[연합뉴스]

The party and government are preparing a plan to freeze the holding tax at the level of last year, as it is inevitable that a large increase is still inevitable even if the average publicly announced price in Seoul and nationwide this year is slightly lower than last year.

The most likely plan to be considered is to lower the property tax to the level of last year only for those subject to property tax of 1.1 billion won or less, which are not subject to comprehensive real estate tax among single households, and to defer the payment of comprehensive real estate tax for the elderly in one house. Multi-family dwellings and those subject to the one-family property tax are excluded from the freezing of the holding tax.

The government plans to report this proposal to the transition committee, which was elected President Yoon Seok-yeol, and prepare a final proposal following discussing the relevant details. Previously, President-elect Yoon made a promise to return to the 2020 level by lowering the fair market value ratio to lower the holding tax. It is said that this promise will be coordinated to the extent that it differs from the party-justice plan.

By Kim Doo-hyeon, staff reporter [email protected]