Office-tel Standard Market Price Up 8%... Gyeonggi Rises 12%, Largest Increase Nationwide

National Tax Service Announces 2022 Standard Market Prices for Officetels and Commercial Buildings

[Sejong=Asia Economy Reporter Kim Hyunjung] The standard market price for officetels and commercial buildings, effective from next year, has increased by an average of 8.05% compared to this year, which is double last year's increase. The officetel with the highest standard market price per square meter is "The Rivers Cheongdam" in Cheongdam-dong, Gangnam-gu, Seoul, priced at 11.59 million KRW per 1㎡.

The National Tax Service announced on the 31st that it has officially notified the standard market prices for officetels and commercial buildings applicable from January 1 of next year.

The notification covers 1.87 million units of officetels and commercial/mixed-use buildings located in the metropolitan area including Seoul, Incheon, Gyeonggi, the five major metropolitan cities, and Sejong City, with ownership transfer registration possible by building and unit. This represents a 15.0% increase in the number of buildings and a 19.5% increase in the number of units compared to the previous year.

The standard market price is used when the market price is unknown for inheritance/gift tax or capital gains tax purposes, but it is not used for local taxes such as acquisition tax or property tax, nor for comprehensive real estate tax or social insurance premiums like health insurance.

The standard market price for officetels rose by 8.05% compared to this year, more than double last year's increase of 4.0%. By region, Gyeonggi (11.91%) and Seoul (7.03%) exceeded the average increase rate, while Ulsan (-1.27%), Sejong (1.22%), and Gwangju (2.41%) were below it.

The increase rate for commercial buildings' standard market price was also higher than this year’s 2.89%, at 5.34%. Seoul (6.74%) and Gyeonggi (5.05%) showed notable increases.

The officetel with the highest standard market price per unit area (㎡) was "The Rivers Cheongdam" in Cheongdam-dong, priced at 11.59 million KRW. "Lotte World and Lotte World Mall World Tower Building" in Sincheon-dong, Songpa-gu, reached 9.19 million KRW. "Gangnam Palace" in Garak-dong, Songpa-gu, and "Seocho Palace" in Seocho-dong, Seocho-gu, newly appeared with prices of 7.59 million KRW and 7.26 million KRW respectively. "Gangnam Station Twenty-First Building 102" in Yeoksam-dong, Gangnam-gu recorded 6.79 million KRW.

The top commercial building was "Jamsil Jugong 5 Complex Shopping Center" in Jamsil-dong, Songpa-gu, at 28.58 million KRW per ㎡, followed by "Cheongpyeonghwa Market" in Sindang-dong, Jung-gu at 21.51 million KRW, and "Dongdaemun Shopping Center D-dong" in Jongno 6-ga, Jongno-gu at 21.19 million KRW.

For mixed-use buildings, "Diot" in Sindang-dong, Jung-gu, Seoul, recorded 13.06 million KRW, and "Yeoksam Nobluche Eonju" in Yeoksam-dong, Gangnam-gu, was priced at 12.18 million KRW, ranking as the most expensive buildings.

The total standard market price was highest for officetels at "Lotte World Tower and Lotte World Mall World Tower Building" with 1.1376 trillion KRW. For commercial buildings, it was "LCT Landmark Tower" in Jung-dong, Haeundae-gu, Busan, at 1.2094 trillion KRW, and for mixed-use buildings, "Forena Gwanggyo" in Hadong, Yeongtong-gu, Suwon-si, Gyeonggi-do, at 954.9 billion KRW.

The notified standard market prices can be viewed on Hometax starting today. Owners who have objections to the standard market price may apply for a reassessment. The calculation method for the standard market price of general buildings not individually notified was also announced today. The standard market price for buildings not subject to notification is calculated by multiplying the building area (㎡) by the "price per ㎡."

The "price per ㎡" is the product of the building construction price standard, structure index, usage index, location index, residual value rate by elapsed years, and individual characteristic adjustment rate. The building construction price standard is 780,000 KRW per ㎡.

The National Tax Service provides an automatic calculation service for building standard market prices on Hometax. By entering the structure, usage, construction year from the building register, and the official land price of the relevant land into Hometax, the standard market price can be confirmed.

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