SH Corporation Estimates Apartment Market Value at Approximately 50 Trillion Won for 100,000 Units

Book Value 12.8 Trillion → Publicly Announced Price 34.7 Trillion '2.7 Times Gap'

[Asia Economy Reporter Kim Min-young] Seoul Housing and Communities Corporation (SH Corporation) is disclosing the asset details of its 101,998 apartment units. This is the second disclosure following the first phase in March, when SH Corporation became the first public enterprise in South Korea to fully disclose its housing, buildings, land, and other assets, initially revealing the assets of about 28,000 long-term lease housing units.

On the 29th, SH Corporation detailed the acquisition cost, book value, and publicly announced price of the total 101,998 apartments it holds, broken down by autonomous district and year, through its website.

The asset types disclosed this time are apartment types among public housing (including the long-term lease housing disclosed in the first phase). The data is categorized by the completion year, divided into before and after 2000, with assets acquired after 2000 further segmented by year.

The acquisition cost of apartments held by SH Corporation is approximately KRW 7.0177 trillion for land and KRW 8.9255 trillion for buildings, totaling KRW 15.9432 trillion. (The average per unit is KRW 160 million.) The book value is about KRW 7.0177 trillion for land and KRW 5.8741 trillion for buildings, totaling KRW 12.8918 trillion, while the publicly announced price is approximately KRW 34.7428 trillion. The estimated market value is about KRW 50 trillion, with an average of KRW 490 million per unit.

For assets completed before 2000, the acquisition cost is about KRW 974.2 billion for land and KRW 896.3 billion for buildings, totaling KRW 1.8705 trillion. The book value is KRW 974.2 billion for land and KRW 184.7 billion for buildings, totaling KRW 1.1589 trillion. The publicly announced price is approximately KRW 6.076 trillion, which is 5.2 times higher than the book value. The market value is about KRW 8.6553 trillion, representing a 4.6-fold increase over the acquisition cost.

For assets completed after 2000, the acquisition cost is about KRW 6.0435 trillion for land and KRW 8.0292 trillion for buildings, totaling KRW 14.0727 trillion. The book value is KRW 6.0435 trillion for land and KRW 5.6894 trillion for buildings, totaling KRW 11.7328 trillion. The publicly announced price is approximately KRW 28.6668 trillion, 2.4 times higher than the book value. The market value is about KRW 40.8359 trillion, a 2.9-fold increase over the acquisition cost.

Apartments in the Gangnam 4 districts total 35,772 units, accounting for about 35% of the total. The acquisition cost is about KRW 3.2974 trillion for land and KRW 3.9797 trillion for buildings, totaling KRW 7.2771 trillion. The book value is KRW 3.2974 trillion for land and KRW 2.8815 trillion for buildings, totaling KRW 6.1789 trillion. The publicly announced price is approximately KRW 17.3245 trillion, 2.8 times higher than the book value. The market value is about KRW 24.6788 trillion, a 3.4-fold increase over the acquisition cost.

For other autonomous districts, the acquisition cost is about KRW 3.7203 trillion for land and KRW 4.9548 trillion for buildings, totaling KRW 8.6661 trillion. The book value is KRW 3.7203 trillion for land and KRW 2.9926 trillion for buildings, totaling KRW 6.7129 trillion. The publicly announced price is approximately KRW 17.4183 trillion, 2.6 times higher than the book value. The market value is about KRW 24.8124 trillion, a 2.9-fold increase over the acquisition cost.

According to the business feasibility review criteria, the residual value of the Segok 2 District is calculated based on the land acquisition cost of KRW 260.8 billion. However, the actual publicly announced price is KRW 1.2429 trillion, resulting in a difference of KRW 982.1 billion. SH Corporation is continuously urging related agencies to reflect the actual value of rental housing in the business feasibility review.

The acquisition cost and book value are based on the accounting settlement figures as of the end of December last year, and the publicly announced price is as of June 1 of last year.

The market value is based on the Ministry of Land, Infrastructure and Transport's announcement of the "Publicly Announced Price and Standard Market Price Application Ratio" revised and implemented on August 17 last year, calculated by reverse-engineering the 2021 publicly announced price realization rate, which averaged 70.2% for multi-family housing.

SH Corporation plans to transparently disclose additional data on multi-family, multi-household, and residential officetels in the first half of this year.

Kim Heon-dong, President of SH Corporation, said, "As the owners and shareholders of our corporation are the ten million citizens of Seoul, we will transparently disclose all information so that they can check the status of SH Corporation's assets at any time," adding, "We will continue to disclose public data to satisfy citizens' right to know and to ensure transparency and reliability in the corporation's management."

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