Next Year’s Office-tel Standard Market Price Average Down 4.77%... "Impact of Interest Rate Rise and Real Estate Market Slump"

National Tax Service Announces 2024 Regular Notice of 'Standard Market Prices for Officetels and Commercial Buildings'
Highest Standard Market Price per 1㎡ for Officetels: 'The Rivers Cheongdam' in Gangnam-gu, Seoul

Due to rising interest rates and a downturn in the real estate market, the standard market price of officetels is expected to decrease by an average of 4.77% next year.

On the 29th, the National Tax Service officially announced the '2024 Standard Market Prices for Officetels and Commercial Buildings.'

The standard market price is used when the market price is unknown for the purpose of taxing inheritance and gift taxes on officetels and commercial buildings. It is not applied to holding taxes such as property tax and comprehensive real estate tax, nor to social insurance fees such as health insurance premiums. Property tax, comprehensive real estate tax, and health insurance premiums apply the standard market value set by the Ministry of the Interior and Safety.

The announced volume includes a total of 2.29 million units, consisting of 1.22 million officetels and 1.07 million commercial buildings, marking a 5.9% increase compared to the previous year. Due to rising interest rates and the real estate market downturn, the standard market price of officetels fell by an average of 4.77%, and commercial buildings by an average of 0.96% compared to the previous year.

The announced amount is the value per unit area (㎡) for each unit. The standard market price for each unit is calculated by multiplying the announced price per unit area by the area of the unit (sum of exclusive and shared areas).

An officetel located in Noryangjin, Dongjak-gu, Seoul, where civil service academies and entrance exam academies are concentrated. Photo by Jinhyung Kang aymsdream@

By region, the decline in officetels is notable in Chungnam at -13.03%, Jeonbuk at -8.3%, and Daegu at -7.9%. For commercial buildings, Sejong and Ulsan saw significant decreases of -3.27% and -3.19%, respectively. The main causes of the decline are considered to be commercial district stagnation and prolonged vacancies due to a lack of floating population. On the other hand, Seoul and Busan experienced relatively smaller declines due to increased investment demand from redevelopment and reconstruction.

The officetel with the highest standard market price per 1㎡ is 'The Rivers Cheongdam (?1,285,500)' in Gangnam-gu, Seoul, and for commercial buildings, it is 'Dongdaemun Comprehensive Shopping Center Didong (?2,642,500)' in Jongno-gu.

The standard market prices can be viewed starting from the 29th, and owners or other interested parties who have objections to the standard market price may apply for reassessment. Applications for reassessment can be submitted from January 2 to 31 next year. The results of the re-investigation for the submitted properties will be notified by February 29.

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