National Apartment Officially Announced Price Rises 5.98%... Reduced by 0.01%p Considering Backlash

Significant Increase in Official Prices of High-Value Homes Over 900 Million Won
Official Prices Near 80% for Homes Over 3 Billion Won

[Asia Economy Reporter Moon Jiwon] This year, the publicly announced prices of apartment complexes nationwide have been finalized at a level 5.98% higher than the previous year.

The Ministry of Land, Infrastructure and Transport announced on the 28th that it will decide and publicly announce the official prices of 13.83 million apartment units as of January 1 this year on the 29th.

The nationwide official prices of apartment complexes increased by 5.98% compared to the previous year. The Ministry lowered the final official prices by 0.01 percentage points from the previously disclosed draft last month, reflecting owners' opinions.

The rate of change in official prices has been increasing annually: 4.44% in 2017, 5.02% in 2018, and 5.23% last year.

By region, Seoul (14.73%) showed the highest rate of change in official prices, followed by Daejeon (14.03%), Sejong (5.76%), and Gyeonggi (2.72%).

Other regions had changes below 1%, and Gangwon, Gyeongbuk, Gyeongnam, Chungbuk, Chungnam, Jeonbuk, Ulsan, and Jeju saw official prices decline compared to the previous year.

Looking at price ranges, the official prices of high-priced homes over 900 million KRW increased significantly.

Homes under 900 million KRW, which account for over 95% of the 13.83 million apartment units with announced official prices, rose by 1.96%, showing a slower increase than last year's 2.87%.

Homes under 300 million KRW saw a 1.90% decrease in official prices, while homes priced between 300 million and 600 million KRW rose by 3.93%, and those between 600 million and 900 million KRW increased by 8.49%.

The official price change rate for homes over 900 million KRW, which make up about 4.8% of all apartment complexes, was 21.12%. Specifically, homes priced between 900 million and 1.2 billion KRW rose 15.19%, between 1.2 billion and 1.5 billion KRW rose 17.25%, between 1.5 billion and 3 billion KRW rose 26.15%, and those over 3 billion KRW rose 27.40%. The higher the market price, the greater the change rate in official prices.

The realization rate of official prices for apartment complexes nationwide was 69.0%, up 0.9 percentage points from the previous year. The realization rate also tended to be higher for high-priced homes.

Homes priced under 900 million KRW had a realization rate of 68.1%, slightly down from the previous year.

In contrast, homes priced between 900 million and 1.5 billion KRW saw a 2?3 percentage point increase in realization rate compared to the previous year, and homes over 1.5 billion KRW increased by 7?10 percentage points. Notably, homes over 3 billion KRW had a realization rate of 79.5%, approaching 80%.

This year's official prices of apartment complexes can be viewed from the 29th until next month’s 29th on the 'Real Estate Official Price Informer' website and at the civil service offices of the city, county, or district where the apartment complex is located.

If there are objections to the official prices, an objection form can be submitted by the 29th of next month through the 'Real Estate Official Price Informer' website, the Ministry of Land, Infrastructure and Transport, the civil service offices of the city, county, or district, or the Korea Appraisal Board.

This content was produced with the assistance of AI translation services.