Next Year's Officially Announced Prices Slightly Increase... Standard Land Up 1.1%, Standard Housing Up 0.57%

Ministry of Land, Infrastructure and Transport Announces 2024 Official Land Price Proposal
Applying the Same 2020 Realization Rate as This Year

The official land price and official price of standard detached houses, which serve as the basis for land and detached house ownership taxes, will slightly increase next year compared to this year. The official land price will rise by 1.1%, and the official price of standard houses will increase by 0.57%. This is the result of applying the government's 2020-level price realization rates for next year's official prices (65.5% for official land price and 53.6% for standard houses), which are the same as this year. The burden of various taxes based on the official prices, such as ownership tax, is expected to slightly increase or remain similar to this year.

A citizen visiting the Seoul Sky observation deck at Lotte World Tower in Songpa-gu, Seoul, is looking out over the cityscape of Seoul./Photo by Dongju Yoon doso7@

On the 20th, the Ministry of Land, Infrastructure and Transport disclosed the draft official land prices and official prices of standard houses for next year.

The official land price will increase by 1.1% next year compared to this year. This increase rate is the lowest in the past 10 years (rate of change relative to absolute price). Last year (10.17%) saw a significant rise, followed by a decrease of -5.91% this year.

Official land prices nationwide mostly showed a slight upward trend. Looking at the rate of change by city and province, Sejong (1.59%↑), Gyeonggi (1.35%↑), Daejeon (1.24%↑), Seoul (1.21%↑), and Gwangju (1.16%↑) were at the top of the increase rates, while Jeju was the only region among the 17 cities and provinces to decline by 0.45%. By usage type, commercial land rose by 1.32%, industrial land by 1.16%, residential land by 1.01%, farmland by 1.01%, and forest land by 0.62%, showing slight increases.

The official price of standard houses next year showed the lowest rate of change since the introduction of housing price disclosure in 2005. It increased by 0.57% compared to this year. By city and province, Seoul (1.17%↑), Gyeonggi (1.05%↑), Sejong (0.91%↑), Gwangju (0.79%↑), and Incheon (0.58%↑) showed increases. Jeju (0.74%↓), Gyeongnam (0.66%↓), Ulsan (0.63%↓), Daegu (0.49%↓), and Busan (0.47%↓) experienced decreases.

The official land price and official price of standard houses serve as the reference prices for individual parcels or houses assessed by local governments. This time, 580,000 parcels were selected out of 35.35 million parcels of land subject to official disclosure nationwide, and 250,000 households were selected out of 4.09 million detached houses nationwide.

The official prices form the basis for real estate-related taxes such as property tax and comprehensive real estate holding tax (comprehensive tax), as well as various charges including health insurance premiums. The tax burden on citizens next year is expected to be similar to or slightly higher than this year. In regions where some declines were recorded, a slight reduction in burden is also expected.

The Ministry of Land, Infrastructure and Transport will conduct a review and opinion hearing process for owners from today until January 8 next year regarding these draft official land prices and standard house prices, and after deliberation by the Central Real Estate Price Publicity Committee, plans to officially announce them on the 25th of the same month.

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