Gov’t hikes assessed value of houses worth over 2.5 billion won by 36 percent

Jan 25, 2019, 10:09 am

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Minister of Land, Infrastructure and Transport Kim Hyun-mee speaks during a press conference at the Government Complex in Seoul on this year’s appraised price of standard detached homes held on Thursday./ Source: Yonhap News

By AsiaToday reporter Cheong Ah-reum

The Ministry of Land, Infrastructure and Transport has hiked this year’s appraised prices of standard detached homes that worth over 2.5 billion won (US$ 2.2 million) by 36 percent. The sharp appraised price increase is expected to bring heavy tax resistance from homeowners as it would be reflected in the property tax.

The land ministry announced Thursday that it raised this year’s appraised prices of those homes by an average of 9.13 percent from a year earlier. It is the sharpest increase since the government’s announcement of appraised prices of standard detached homes in 2005. By cities, Seoul recorded the highest on-year growth rate of 17.75 percent.

Daegu came next with 9.18 percent, followed by Gwangju with 8.71 percent and the administrative capital of Sejong with 7.62 percent.

The ministry has sharply raised the prices of standard detached homes worth over 900 million won (US$ 796,812) considering fairness of prices between high-priced and low-priced homes.

For example, a detached house located in Munhwa-dong, Jung-gu, Daejeon city, had an appraised price of 200 million won (US$ 177,070) and actual transaction price of 300 million won (US$ 265,604) last year, reflecting 67 percent of the market value. On the other hand, a detached house located in Hannam-dong, Yongsan-gu, Seoul, had a real transaction price of 3,400 million won (US$ 3,008,850) with an appraised price of only 1,300 million won (US$ 1,150,442), reflecting only 38 percent of the market value.

The government increased the appraised prices of expensive houses considering fairness.

It lifted the appraised prices of standard houses worth over 2.5 billion won by 36.49 percent nationwide, with Seoul by 37.54 percent. The appraised prices of those houses worth over 1.5 billion to 2.5 billion won rose by 21.1%, while those houses worth over 0.9 billion to 1.5 billion won increased by 9.06 percent.

The appraised prices of standard detached homes in Yongsan-, Gangnam-, and Mapo-gu, where housing prices soared last year, jumped more than 30 percent.

The appraised prices of standard houses worth less than 0.9 million won rose by one digit.

In a press conference at the Government Complex in Seoul on this year’s appraised price of standard detached homes, Minister of Land, Infrastructure and Transport Kim Hyun-mee said, “We lowered the appraised price rate after collecting opinions from local governments. After announcing all the appraised prices of real estate by end of May, we will conduct simulations to minimize impact on ordinary people that own low and middle priced homes.”

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