Apartment Official Price Objections Increased by Over 32%, but Only 5% Reflected

National Apartment Official Prices Up 19.05%...0.03%p Decrease from Draft
Seoul 19.91%→19.98%, While Daejeon and Jeju Increase by 0.01%p
Total 49,601 Opinions Received, Up 32.6% YoY...Adjustment Rate 5.0%

[Asia Economy Reporter Kangwook Cho] The publicly announced prices of nationwide multi-family housing have been finalized at a 19.05% increase, the largest rise in 14 years. Although objections to the announced prices approached 50,000 cases, increasing by more than 32% compared to last year, the reflection rate was only 5%.

The Ministry of Land, Infrastructure and Transport announced on the 28th that after collecting opinions from owners and conducting review procedures on the draft public prices of 14.2 million multi-family housing units including apartments, row houses, and multi-unit houses for 2021, the prices will be finalized and announced as of the 29th.

According to this announcement, the nationwide public prices of multi-family housing increased by 19.05% compared to the previous year. This is 0.03 percentage points lower than the draft released last month but represents the highest increase since 2007 (22.7%). The rate of change in public prices has been increasing annually: 4.44% in 2017, 5.02% in 2018, 5.23% in 2019, and 5.98% last year. Seoul's rate was adjusted downward by 0.02 percentage points from 19.91% to 19.89%.

By region, the highest increases were in Sejong at 70.25%, Gyeonggi at 23.94%, Daejeon at 20.58%, Seoul at 19.89%, and Busan at 19.56%. Most regions saw slight decreases or remained the same compared to the draft, but Daejeon and Jeju (1.73%) increased by 0.01 percentage points. Accordingly, the realization rate of the public prices remained at 70.2%, the same as the draft, which is 1.2 percentage points higher than last year's 69.0%, explained the Ministry of Land, Infrastructure and Transport.

During the viewing period, a total of 49,601 opinions were received from owners, an increase of 12,191 cases (32.6%) compared to last year's 37,410 cases. This is the highest number since 2007 (56,355 cases). Among the submitted opinions, 48,591 cases (98%) requested a reduction in the public prices. The remaining 1,010 cases (2%) requested an increase.

However, only 2,485 cases were reflected in the public prices, resulting in an acceptance rate of just 5.0% of all submitted opinions. Although this is an increase compared to last year's adjustment rate of 2.4%, considering that the rate was 21.5% in 2019, most applications were not accepted.

By region, the adjustment rates based on submitted opinions were 12.4% (54 cases) in Gyeongnam, 11.5% (470 cases) in Sejong, and 10.9% (7 cases) in Gangwon, while Seoul had 3.8% (865 cases) and Gyeonggi 4.2% (638 cases).

Regarding the distribution of multi-family housing prices, 13.089 million units, or 92.1% of the total, had public prices of 600 million KRW or less nationwide, with 1.825 million units (70.6%) in Seoul. Units exceeding 900 million KRW accounted for 3.7% (524,000 units) nationwide and 16.0% (413,000 units) in Seoul.

The public prices of multi-family housing can be checked from the 29th on the 'Real Estate Public Price Information' website and at the civil service offices of the city, county, or district where the housing is located. If there are objections, an objection form can be submitted online via the 'Real Estate Public Price Information' website or by mail, fax, or direct visit to the Ministry of Land, Infrastructure and Transport, city/county/district offices (civil service offices), or the Korea Real Estate Board by the 28th of next month. The Ministry will conduct a re-investigation of objections and adjust and announce any necessary changes to the public prices on June 25.

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