Kyeongsilryeon "Official Land Price Realization Rate 30.7%... Half of Government Announcement"

Ministry of Land's Market Price Reflection Rate at 68.4%... "Gangnam 42.1% · Non-Gangnam 27.5%"

[Asia Economy Reporter Lim On-yu] A survey revealed that the actual realization rate of publicly announced land prices differs significantly from the government's announced figures.

The Citizens' Coalition for Economic Justice (CCEJ) held a press conference on the 18th, claiming that "the realization rate of publicly announced land prices is 30.7%, less than half of the government's announced rate of 68.4%." Referring to KB Real Estate data, CCEJ calculated the land market prices of 85 apartment complexes across 25 autonomous districts in Seoul. Building values were applied between 1 million and 6 million KRW per pyeong depending on the apartment's age, with the survey based on data from January each year.

As a result of the analysis, the average land market price was 83.28 million KRW per pyeong, which corresponds to a market reflection rate of 30.7% compared to the government's announced average publicly announced land price of 25.54 million KRW per pyeong. Although the standard land price reflection rate for apartments was higher in the Gangnam area than in non-Gangnam areas, no area approached the government's announced standard land price reflection rate of 68.4%.

The land market price for 11 standard land apartment complexes in the three Gangnam districts was 140.13 million KRW per pyeong, with a publicly announced land price of 59 million KRW, resulting in a realization rate of 42.1%. By district, the realization rates were 40.9% in Gangnam-gu, 43.7% in Seocho-gu, and 40.9% in Songpa-gu. For 74 standard land apartment complexes in 22 non-Gangnam districts, the land market price was 74.83 million KRW per pyeong, and the publicly announced land price was 20.57 million KRW, resulting in a realization rate of only 27.5%. Among these districts, Yeongdeungpo-gu had the highest rate at 40.6%, while Seongdong-gu had the lowest at 22.1%, showing significant regional variation.

CCEJ pointed out that although apartment and land prices have rapidly increased since the Moon Jae-in administration, the rise in publicly announced land prices has not kept pace.

According to CCEJ, the average 34-pyeong apartment in the three Gangnam districts was 1.31 billion KRW in January 2017 but rose to 2.26 billion KRW by January 2021. During the same period, a 34-pyeong apartment in non-Gangnam areas also increased from 580 million KRW to 1.08 billion KRW.

Looking at all 25 districts in Seoul, apartment prices rose by 81% (from an average of 680 million KRW to 1.23 billion KRW), and land prices increased by 98% (from 42 million KRW to 83.28 million KRW per pyeong) during this period. In contrast, publicly announced land prices only rose 55%, from 16.52 million KRW per pyeong in 2017 to 25.54 million KRW in 2021, resulting in a further decline in the market reflection rate.

CCEJ stated, "We can no longer tolerate the distortion of taxation standards by the Ministry of Land, Infrastructure and Transport," and urged, "The government must immediately raise publicly announced land prices by more than double to achieve a market reflection rate of over 80%."

They added, "The publicly announced price system applies only to apartments and houses and does not reflect commercial office buildings," and called for legal amendments to ensure that taxes are imposed based on correct publicly announced land prices without discrimination across all real estate.

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