Gov`t-set Prices of Multi-unit Homes Fell 4.6%

The average official price of multi-unit homes fell 4.6 percent last year, the first decline since 2005 when the official price system was introduced.

The threshold official price of homes subject to the comprehensive real estate tax increased from 600 million won (449,400 U.S. dollars) last year to 900 million won (674,200 dollars), or 600 million won plus 300 million won in deductions allowed for the owners of single homes. The number of homes subject to the tax declined to 68,054 units this year from last year`s 284,821.

The Land, Transport and Maritime Affairs Ministry said yesterday that it will announce today the official prices of 9.67 million multi-unit homes nationwide. Cities, countries and wards will also announce the official prices of 3.99 million single-family homes.

The official price is the base for the property and comprehensive real estate taxes.

Seoul and Gyeonggi Province, which led price hikes three to four years ago, saw their official prices fall more than in other regions. Seoul`s declined 6.3 percent and Gyeonggi`s 7.4 percent.

Prices in Incheon (up six percent) and North Jeolla Province (up 4.3 percent), which are home to development projects including a free economic zone and the Saemangeum reclamation area, saw sharp rises.

By area in Gyeonggi, the official price fell 21.5 percent in Gwacheon, 20.6 percent in Seongnam’s Bundang district, and 15.5 percent in Yongin.

"Bubble 7 districts" around Seoul, or areas seeing the highest land speculation, saw across-the-board drops in the price. The price declined 14.9 percent in Yangcheon and 14.1 percent in Gangnam.-gu in Seoul. That in Anyang`s Dongan district, which has Pyeongchon New Town, dropped 11.5 percent and that in Seocho-gu, Seoul, fell 10.5 percent.

In contrast, the official price jumped in areas where development projects, including the construction of light electric railways and urban redevelopment projects, are being conducted. Uijeongbu saw a rise of 21.6 percent; Dongducheon 21.5 percent; and Incheon`s Dong district 19.8 percent.

People can check the official prices of their homes at the ministry’s Web site (www.mltm.go.kr) or the homepages of cities, counties and ward offices from today to June 1. They can also check the price of single-family homes at the Web sites of these government offices.

jefflee@donga.com