15.1 % Increase in Housing and Land Value

Land value by public announcement will be raised nationwide by an average of 15.1 percent from today, based on which taxes of transfer income or inheritance of real property are imposed.

This is likely to increase tax burdens particularly for those in speculation-prone Gangnam, where land values by public announcement have gone up 34.3% since April, last year, for apartments scheduled for reconstruction.

National Tax Service, yesterday, announced the readjusted land values, which will be applicable to row houses across the nation. They include apartments and townhouses on 18,000 sites in which as many as 5,162,693 families currently live.

The average growth rate of land value, 15.1%, is the highest since the 46.5% increase in 1990. In April last year, a 9.7% increase was announced.

On a regional basis, Daejeon Metropolitan City, the probable destination for the government`s administrative bodies, recorded the highest increase at 26%. This is followed by Incheon at 22%, Seoul 19.5%, Gyeonggi province and Gyeongnam province at 18.4% and 14.9% respectively.

Valued the highest at 3.2 billion 34 million won was the 180 pyeong Traunhouse III, located in Seocho-gu, Seoul.

The lowest valued was Yonggi apartment in Iksan City, Jeolla Province. With Yonggi apartment valued at 4 million won for a 13 pyeong space, it would take 810 Yonggi apts to buy a single Traumhouse III.

Cheongdam-Royal County, at 116 pyeong and also in Gangnam, saw the highest jump from 1. 71 billion to 2. 14 billion won since April last year.

Dogok-jugong-yicha apt. in Daechi-dong, Gangnam was estimated as the most expensive at 31 million 492 thousand won per pyeong. On the opposite scale was an apartment for employees in Iksan City at 281 thousand won per pyeong.

Jin-Hup Song Chang-Won Kim jinhup@donga.com changkim@donga.com