HUG High Price Approval System Improvement... Expansion of Criteria Disclosure Range

Improvement of Nearby Market Price Assessment Criteria and Comparable Project Selection Standards
HUG "Expected to Contribute to Housing Supply Activation"

The Housing and Urban Guarantee Corporation (HUG) partially supplemented the fully revised high-priced housing review system from February after seven months.

HUG announced on the 29th that it will implement improvements to the high-priced housing review system starting on the 30th, focusing on standards for calculating nearby market prices, selecting comparable projects, and reasonably reflecting regional housing price levels. This supplementation comes in response to ongoing industry demands for improvements in pricing standards even after the complete overhaul of the review criteria.

Since the full revision of the high-priced housing review system in February, HUG has evaluated that many issues related to arbitrariness have been resolved; however, in some areas such as the Seoul metropolitan area and major cities, the high-priced housing review prices were still set excessively low without reasonable standards, causing dissatisfaction among housing developers.

Accordingly, HUG improved the high-priced housing review system by partially enhancing the standards for calculating nearby market prices and selecting comparable projects, and by reasonably reflecting regional housing price levels. Additionally, to increase predictability for housing developers, HUG decided to expand the disclosure scope of the high-priced housing review criteria.

Specifically, to rationalize the procedure for calculating nearby market prices, going forward, nearby projects will be evaluated based on complex characteristics and project stability, and the average market price of projects similar to the applicant project will be applied.

Previously, if there were no comparable projects meeting the review score requirements, sometimes only one project among sold or completed projects was used for review, but going forward, the review score requirements will be relaxed to select one comparable project each from sold and completed projects to prevent review distortion due to the absence of comparable projects.

When the upper limit of the high-priced housing review result is significantly low, partial adjustments can be made considering regional housing price levels, and in such cases, the average sale price of the relevant city, county, or province will be reasonably reflected in the review.

HUG will also greatly expand the disclosure scope of the review criteria within the range that does not undermine the purpose of the high-priced housing review system to guarantee the public's right to know and increase predictability for developers. The revised high-priced housing review regulations will take effect on the 30th.

Kwon Hyung-taek, President of HUG, said, "With this system supplementation and additional disclosure of review criteria, we expect to revitalize some regions where supply had been delayed and contribute to the activation of housing supply."

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