Detached House Prices End Year Higher

The posted price of detached houses (including multi-family units and houses), a standard factor in determining property comprehensive real estate taxes, rose 5.6 percent nationwide on average.

The property tax-related burden for those possessing detached houses will be bigger by five to six percent as a result.

The Ministry of Construction and Transportation (MOCT) posted its appraisal study results and prices for 200,000 standard houses out of 4.7 million detached houses nationwide yesterday.

Based on this posted price on standard houses, the MOCT will appraise and announce individual prices for all detached houses on April 28. The standard date for the pricing was January 1 of this year.

The posted prices of detached houses in Yeongi-gun in South Chungcheong Province where the New Multi-functional Administrative City will be built rose by 50.5 percent on average, the highest increase overall. Yangju City in Gyeonggi Province (21.1 percent), and Jung-gu in Incheon (20.4 percent) saw increases of over 20 percent.

As for cities and provinces, due to the influence of administrative cities and various development projects, the increase in South Chungcheong Province was the highest at 13.0 percent, followed by Gyeonggi (8.9 percent), Ulsan (7.4 percent), Daejeon (7.2 percent), and Incheon (5.8 percent).

The detached house with the highest posted price out of all standard houses was located in 2-ga Shinmun-ro, Jongno-gu, Seoul, and listed as worth 3.02 billion won. The house with the lowest price was a farm worth 483,000 won.

The number of detached houses worth more than 600 million won and targeted for the comprehensive real estate tax amounted to 1,000 standard houses. Nationwide, the total is estimated to be 23,000.

Joong-Hyun Park sanjuck@donga.com