The downstairs neighbors don't pay, but only the upstairs neighbors face a heavy 종부세 bomb...

Looking into the Rough Public Price Assessment
Many Cases of Large Price Gaps in the Same Area and Identical Size
Homeowners' Outrage... "Specific Assessment Criteria by Housing Type Must Be Disclosed"

[Asia Economy Reporters Kim Hyemin and Moon Jewon] Controversy over fairness continues unabated following the disclosure of official prices for apartments and other multi-family housing this year.

On the 18th, a review of the Ministry of Land, Infrastructure and Transport’s ‘Real Estate Official Price Informer’ revealed numerous cases where official prices differed significantly between apartments in the same neighborhood with similar market prices. In some cases, despite having the same area within the same apartment complex, one unit paid comprehensive real estate tax (CRET) while another did not due to differences in official prices.

The official price for an 84㎡ (exclusive area) unit at ‘e-Pyeonhansesang Yeomchang’ in Yeomchang-dong, Gangseo-gu, Seoul, was set at 969 million KRW this year. This represents a 33.1% increase from last year’s 728 million KRW, placing it within the scope of CRET for the first time this year (threshold of 900 million KRW for single homeowners). Meanwhile, a unit of the same size at ‘Yeomchang Hanwha Dream Green,’ located just a 5-minute walk away, was priced at 889 million KRW, thus avoiding CRET. This was because its increase rate was lower at 27.7%. The price gap between the two apartments widened from 32 million KRW last year to 80 million KRW this year.

At ‘Mapo Raemian Prugio’ in Ahyeon-dong, Mapo-gu, the official price increase rates varied depending on the unit size. For example, an 114㎡ unit on the 13th floor was priced at 1.481 billion KRW this year, up 18.4% from last year, while a 59㎡ unit increased by 16.1%. The 84㎡ units saw a more modest rise of 12.4%.

There were also cases where official prices were identical last year but diverged this year. In the Magok district of Gangseo-gu, the 84㎡ units at ‘Magok Hillstate’ and ‘Magok 13th Complex Hillstate Master’ both had official prices of 771 million KRW last year. However, this year, Magok Hillstate was priced at 880 million KRW, while Magok 13th Complex Hillstate Master was at 909 million KRW, a difference of 29 million KRW. Their CRET liabilities also differed accordingly.

In Saerom-dong, Sejong City, at Saetteum Village Complex 14, the imposition of CRET differed between upper and lower floors. The 11th floor of building 1404 had an official price of 919 million KRW, a 63.8% increase, resulting in CRET liability, whereas the lower floor was priced at 899 million KRW, thus avoiding the tax.

The Ministry of Land, Infrastructure and Transport explains that official prices can vary even within the same apartment complex. The ministry stated, “Official prices for multi-family housing are calculated by reflecting factors such as building location, floor level, view, sunlight, and noise. Even within the same complex and on the same floor, differences in view and other conditions can cause price variations, and location within the building can also lead to price differences.” They emphasized that price differences between lower, upper, or neighboring units do not necessarily indicate errors in price assessment.

However, experts argue that detailed calculation criteria should be disclosed to quell dissatisfaction. Lee Eunhyung, Senior Researcher at the Korea Institute of Construction Policy, said, “When official prices vary so much within the same neighborhood and complex, those who end up paying higher holding taxes like CRET understandably feel aggrieved. The government should disclose detailed official price calculation criteria not only for apartments but also for other housing types such as row houses.”

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