Confirmed 17.2% Increase in Apartment Official Land Prices... Objections Reduced to One-Fifth Level

A view of the downtown apartment complex from Namsan, Seoul.

This year, the nationwide official price increase rate for apartment complexes was confirmed at a significant 17.2%, continuing the sharp rise from last year. However, the number of objections submitted dropped to about one-fifth of last year’s level. This appears to be due to the government’s announcement to ease the tax burden on single-homeowners, which reduced dissatisfaction related to the official price hikes.

The Ministry of Land, Infrastructure and Transport announced on the 28th that the 2022 official apartment complex price proposal, released on the 24th of last month, has been finalized and publicly announced on the 29th after collecting opinions from owners and local governments and undergoing review and resolution by the Central Real Estate Price Public Announcement Committee.

The nationwide official apartment complex price increase rate was finalized at 17.20%, a slight decrease of 0.02 percentage points (p) compared to the draft for public inspection.

Seoul remained unchanged at 14.22%, while Incheon decreased slightly from 29.33% to 29.32%, Gyeonggi from 23.20% to 23.17%, and Busan from 18.31% to 18.19%.

Daejeon (16.35%→16.33%), Chungnam (15.34%→15.30%), Jeju (14.57%→14.56%), Gyeongnam (13.14%→13.13%), Gyeongbuk (12.22%→12.21%), and Ulsan (10.87%→10.86%) also saw minor downward adjustments. Other cities and provinces showed no changes from the draft.

This year’s official apartment complex prices rose sharply again, following last year’s 19.05% increase, which was the largest since 2007 (22.70%). For two consecutive years, the increase rate has remained in double digits, showing a significant rise.

On the other hand, the total number of opinions submitted nationwide during the inspection period was only 9,337.

This is less than one-fifth of the 49,601 requests for downward adjustments that flooded in last year due to the sharp price hikes. It is also the lowest number in four years since 2018 (1,290), just before the government began efforts to raise the official price realization rate.

An official from the Ministry of Land, Infrastructure and Transport said, "The decrease in the number of submissions this year seems to be due to the tax burden relief measures for property tax and comprehensive real estate tax, which were announced together with the official price inspection."

Among these, requests to lower the official price accounted for 8,668 cases, or 92.8% of the total, while requests to raise the price were 669 cases (7.2%).

The rate at which opinions on price adjustment requests were reflected averaged 13.4%, significantly higher than last year’s 5.0%.

The reflection rate for downward requests was 13.4% (1,163 cases), and for upward requests, it was 12.7% (85 cases).

The Ministry stated that those who have objections to the official price can submit an objection form by the 30th of next month. For these objections, a re-investigation will be conducted, and any necessary changes to the official prices will be adjusted and announced on June 24.

Meanwhile, the officially announced apartment complex prices can be checked from the 29th (Friday) on the Real Estate Official Price Information website and at the civil service offices of the city, county, or district where the apartment complex is located.

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