Frozen official price realization rate next year...Housing prices in Gangnam are likely to increase.

∀ Government Announces Roadmap to Realize Public Price in 2020

As the tax burden grows, the realization rate returns to 2020 levels

Public hearings will be held as the related law becomes uncertain as the National Assembly passes by the end of this year

Next year's market price reflection rate is set at the current level.

[Anchor]
The government is expected to freeze the realization rate of the declared value of real estate next year, that is, the ratio of the declared value to the market price, for the second consecutive year.

There is a possibility that the holding tax burden will increase in some areas, including Gangnam-gu, Seoul, where housing prices have risen significantly this year.

This is reporter Choi Doo-hee.

[Reporter]
In 2020, the Moon Jae In government announced a roadmap for realizing the declared value of apartment houses to raise the declared value to 90% of the market price by 2030, saying it would increase tax equity.

The official price is based on the imposition of holding tax, but as the tax burden on homeowners surged due to soaring housing prices, the Yoon Suk Yeol government returned the realization rate to the 2020 level from the official price in 2023.

Last March, we decided to abolish the roadmap.

[Yoon Suk Yeol / President (March): Our government will completely abolish the reckless disclosure price realization plan so that the public will no longer feel anxious.]

As a result, a related law amendment was proposed, but as the passage of the National Assembly within this year became unclear due to opposition parties, the government held a public hearing to set the direction of price disclosure next year as a temporary measure.

[Nam Young-woo / Land Policy Officer, Ministry of Land, Infrastructure and Transport (Yesterday): In September, we announced a plan to rationalize the real estate disclosure price calculation system to increase the declared value balance. However, as the revision of the Real Estate Disclosure Act has not been finalized so far....]

At this meeting, the Korea Research Institute of Land, Infrastructure and Transport proposed a plan to set next year's market price reflection rate to the current level.

[Park Cheon-gyu / Director of Housing Real Estate Research Division at the Korea Research Institute for Human Settlements (Yesterday): It only reflects the market fluctuation rate as it is in 2020. It reflects the market level as much as possible by reflecting the rise and fall, but maintains the stability of the published price and minimizes the burden on the public....]

In fact, as it is the government's official price plan for next year, it is expected that the realization rate of the official price will be frozen next year.

If this happens, the declared price realization rate next year will be 69% for apartment houses, as it is this year when the level of 2020 is applied, and next year's declared price will only reflect changes in the market price.

As a result, the holding tax burden is expected to increase next year, especially in high-priced apartments such as Gangnam-gu, Seoul, where the price fluctuations have been high this year.

However, by the end of the year, the impact of fluctuations in housing prices can be reflected in the official price and the adjustment work will be conducted to see if it was an appropriate actual transaction price.

Based on the results of the public hearing discussions, the Ministry of Land, Infrastructure and Transport has decided to announce measures this month to apply to next year's official price.

I'm Choi Doohee of YTN.

Photographer: Kwon Seok-jae
Design: Im Sae-byul