The Ministry of Land, Infrastructure and Transport announced on the 21st that this decision was made at the Central Real Estate Price Disclosure Committee held at the Land Development Exhibition Hall in Jung-gu, Seoul.
|▲ Appearance of an apartment in Seoul.|
The Ministry of Land, Infrastructure and Transport explained that it decided to freeze the realization rate in consideration of the need to minimize the increase in publicly announced prices in order to ease the burden on the public due to interest rate hikes, rising prices, and increased household debt, uncertainty in the real estate market, and instability in macroeconomic conditions.
The publicly announced price is the appraised price that the government assigns to real estate as of January 1 each year. It is used as basic data for 67 administrative systems, including property tax and comprehensive real estate tax, as well as health insurance premiums and basic pensions.
The actualization rate of publicly announced real estate prices to be applied in 2024 is an average of 69.0% for apartment complexes. This is the same as this year and is at the level of 2020 before the implementation of the roadmap for realizing publicly announced prices.
The realization rate applied to apartments worth less than 900 million won in 2024 is 68.1%, 69.2% for apartments priced between 900 million won and less than 1.5 billion won, and 75.3% for apartments priced over 1.5 billion won. In addition, single-family homes account for 53.6% and land accounts for 65.5%.
There is an interpretation that the government is taking steps to effectively discard the roadmap for realizing publicly announced prices introduced in 2020. The main framework of the existing realization roadmap was to increase the realization rate every year to 90% by 2035.
As the government reexamines its realization plan, the real estate ownership tax in 2024 will only reflect the amount of market price fluctuation.
The 2024 publicly announced price will be determined in the first half of 2024 (January for standard housing and standard land, April for apartment complexes).
Kim Oh-jin, First Vice Minister of Land, Infrastructure and Transport, said, “In order for the disclosure system to be operated based on fairness and common sense, a fundamental review and comprehensive prescription regarding the actualization plan are necessary,” and “We will reexamine the actualization plan from the public’s perspective.” Reporter Ryu Soo-jae