Next Year’s Nationwide Standard Housing Official Price to Rise 6.68% Compared to Previous Year

Real Estate Official Price Notification Site Available for Checking Starting Tomorrow

(Data from the Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 17th that it will conduct a 20-day owner review and opinion hearing process for the publicly announced prices of 230,000 standard houses as of January 1, 2021, from the 18th until January 6 of next year.

For next year's price announcement, 230,000 standard houses were selected from 4.17 million nationwide single-family houses (including multi-family houses, multi-unit houses, and mixed-use houses). This is an increase of 10,000 houses compared to 2020 to improve the distribution of standard houses by land use zone.

This announced price proposal was calculated by applying the realization rates from the 'Real Estate Public Price Realization Plan' announced by the government on the 3rd of last month. According to this plan, the publicly announced prices of standard houses will rise to 90% of market prices over 7 to 15 years, depending on the price range.

The 2021 standard house price change rate nationwide is 6.68%, higher than last year's 4.47%, but lower than 2019's 9.13%. By region, the price changes were Seoul 10.13%, Gwangju 8.36%, Busan 8.33%, Sejong 6.96%, and Daegu 6.44%.

The change rate for standard houses priced below 900 million KRW was 4.6%, for houses priced between 900 million and 1.5 billion KRW it was 9.67%, and for houses priced above 1.5 billion KRW it was 11.58%.

Due to the revision of the Local Tax Act related to price realization, the proportion of standard houses with a publicly announced price of 600 million KRW (market price about 950 million KRW) or less, which are subject to property tax rate reductions, is estimated to be 95.5% nationwide and 69.6% in Seoul. From January 1 next year, the tax rate for one household one house owners with a publicly announced price of 600 million KRW or less will be reduced by 0.05 percentage points per tax base bracket.

The realization rate of standard house publicly announced prices is expected to increase by 2.2 percentage points to 55.8% compared to 53.6% in 2020. This is similar to the target (55.9%) according to the realization plan.

The balance index for the distribution of realization rates of houses priced below 900 million KRW, which will be focused on improving balance from 2021 to 2023, decreased from 10.82 to 8.54. The balance index indicates the deviation of the publicly announced price realization rate; the lower the value, the better the balance.

The standard house publicly announced price proposal will be finalized and announced on January 25 next year after owner opinion hearings and deliberations by the Central Real Estate Price Public Announcement Committee. The standard house publicly announced price serves as the basis for calculating individual house publicly announced prices, and city, county, and district offices calculate individual house prices using the standard house prices and adjustment tables.

The publicly announced prices can be checked on the Real Estate Public Price Information website from midnight on the 18th. If there are any opinions, they can be submitted by January 6 next year via the Real Estate Public Price Information website, city/county/district office civil service desks, or by mail, fax, or visit to the Korea Real Estate Board.

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