The Top Standard Price for Officetels is 'Jamsil Lotte World Tower'

Ministry of the Interior and Safety Announces 2024 Standard Price Reference
1㎡ at 1.78 Million KRW, Slight Decrease from Last Year's 1.82 Million KRW

The officetel with the highest standard price per 1㎡ in the Ministry of the Interior and Safety's officetel standard price criteria was confirmed to be 'Lotte World Tower and Lotte World Mall' in Jamsil, Seoul.

Lotte World Tower. [Photo by Lotte Corporation]

On the 7th, the Ministry of the Interior and Safety announced the '2024 Officetel Standard Price Criteria' and the '2024 Building Reconstruction Price Criteria,' which serve as the basis for local tax calculations. The standard price criteria announced by the ministry serve as the basis for local taxes such as acquisition tax and property tax on non-residential buildings like commercial buildings and officetels.

The standard price per 1㎡ of 'Lotte World Tower and Lotte World Mall' was set at 1,785,000 KRW, making it the highest. This is a slight decrease compared to last year's 1,829,000 KRW.

'Rich Tower Officetel' in Gwanak-gu, Seoul, followed with 1,651,000 KRW, and 'The Palace Officetel' in Jongno-gu recorded 1,574,000 KRW.

The average standard price for all officetels was found to have decreased by about 5%.

The Ministry of the Interior and Safety explained that the officetel standard price includes actual real estate transaction prices in its calculation criteria, and the decline in actual transaction prices due to interest rate hikes and real estate market downturns influenced this decrease.

The building reconstruction price criteria are set by considering how much it would cost to rebuild the building at the current time. For residential, commercial, and industrial buildings excluding officetels, the building reconstruction price criteria per 1㎡ were raised by 10,000 KRW each from last year to 820,000 KRW, 810,000 KRW, and 800,000 KRW respectively.

The standard market price for land and housing is determined by local government heads based on the criteria (officially announced land prices) provided by the Minister of Land, Infrastructure and Transport, while the standard market price for non-residential buildings is determined according to the criteria set by the Minister of the Interior and Safety. The National Tax Service also provides standard market prices for officetels and others, which are used when the market price is unknown for inheritance, gift tax, and capital gains tax assessments.

Local government heads set the standard market price reflecting individual characteristics of buildings such as location and building age based on these criteria. After hearing opinions from building owners and stakeholders, the final decision is made on June 1.

An official from the Ministry of the Interior and Safety stated, "Since the building reconstruction price criteria reflect costs significantly, considering inflation, the rates should have been raised more, but the increase rate was minimized to consider the tax burden on citizens."

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