This year, the average official price of joint housing has risen by 3.65% compared to last year. Although the apartment official price realization rate has been frozen for three consecutive years, this is due to the rise in real estate prices last year. In particular, Seoul's increase rate was more than double the national average.

The Ministry of Land, Infrastructure, and Transport announced on the 13th that it has prepared the '2024 Joint Housing Official Price (Draft),' which includes the official prices of 15.58 million joint housing units (apartments, multi-family, and row houses) nationwide, surveyed and calculated as of January 1st this year, and has entered the reading process.

The average official price change rate for joint housing nationwide was tallied at 3.65%. This marks a second consecutive year of increase, following last year's 1.52%.

Seoul's increase rate was overwhelmingly large at 7.86%. This was followed by Gyeonggi (3.16%), Incheon (2.51%), Jeonbuk (2.24%), and Ulsan (1.07%). On the other hand, Sejong (-3.28%), Daegu (-2.90%), Gwangju (-2.06%), Busan (-1.66%), and Gyeongbuk (-1.40%) recorded decreases.

Even within Seoul, there was a large deviation by district. The Gangnam 3 districts, including Seocho (11.63%), Gangnam (11.19%), and Songpa (10.04%), all rose by more than 10%. The increase rates for Seongdong (10.72%), Yongsan (10.51%), and Mapo (9.34%) were also large, but Dobong (1.56%), Gangbuk (1.75%), and Guro (1.85%) only saw increases in the 1% range.

Due to the rise in official prices, the number of houses paying the Comprehensive Real Estate Tax this year (based on official prices exceeding 1.2 billion won and 1 household 1 house) is 318,308 households (2.04%), which is an increase of 51,528 households from last year's 266,780 households (1.75%). Among these, 88.2% (280,667 households) are in Seoul.

The house with the highest official price nationwide is 'Eterno Cheongdam' (464.11㎡) located in Cheongdam-dong, Gangnam-gu, with 20.06 billion won. This is also famous as the place where celebrities IU and Song Joong-ki received pre-sale offers. The house with the lowest official price was a multi-family house in Yeongwol-gun, Gangwon, with an official price of 2.8 million won for an exclusive area of 17.76㎡.

Looking at the estimated tax changes for major complexes by the Ministry of Land, Infrastructure, and Transport, Shin Hyundai 9th (111㎡) in Apgujeong-dong, Gangnam-gu, saw its official price rise by 25.9% compared to the previous year to 3.476 billion won, with its holding tax (property tax + Comprehensive Real Estate Tax) being 49.2% more than the previous year at 18.48 million won.

Mapo Raemian Prugio (84㎡), which did not pay the Comprehensive Real Estate Tax in the previous year because its official price was less than 1.2 billion won, will have to pay 270,000 won in comprehensive real estate tax as it rose by 14.9% compared to the previous year to 1.316 billion won. The total holding tax increased by 17.5% compared to the previous year to 2.87 million won.

The public reading of the official housing prices is available from the 14th to the 2nd of next month. The Ministry of Land, Infrastructure, and Transport will decide and announce on April 30th after listening to opinions from owners and reviewing objections.

The official housing price is an index used not only for taxes such as the Comprehensive Real Estate Tax and property tax, but also for setting health insurance premiums and selecting beneficiaries of basic pensions and basic livelihood security. The government has frozen the official price ratio (official price realization rate) compared to the apartment market price at '69%' for three years since 2023.

[Copyright (c) Global Economic Times. All Rights Reserved.]