The government has decided on a plan to raise the listed real estate price to 90% of the market price.
For 10 years until 2030 for apartments and other apartments, and 15 years for single-family houses until 2035, the public price will be steadily increased, raising the actualization rate (disclosed price/market price) to 90%.
In this case, the public price for apartments and other apartments increases by 3-4% per annum and 3-7% for detached houses.
In order to reduce the tax burden on the low-income class due to the increase in the public price, the property tax rate for houses with a public price of 600 million won or less held by one-family house owners will be reduced by 0.05 percentage points for 3 years starting next year.
On the 3rd, the Ministry of Land, Infrastructure and Transport and the Ministry of Public Administration and Security announced a plan for realizing public prices and a plan for easing the burden on property taxes to alleviate the burden of realization of public prices.
First of all, the listed real estate price is gradually realized to the level of 90% of the market price.
As of this year, the realization rate of the published prices is 65.5% for land (standard land), 53.6% for detached houses (standard housing), and 69.0% for apartment houses. It will be uploaded steadily.
However, the timing of achieving the goal varies by type and price range.
The realization rate rises by about 3 percentage points per year on average, but the current level of realization is different for each type and price range, so it takes 5-10 years for apartments, 7-15 years for detached houses, and 8 years for land. Achieve realization goals.
Housing realization rate is slightly different based on 900 million won.
For houses with less than 900 million won, the official price is gently raised to reach a certain intermediate target (realization rate) for the first three years, and then the target value is raised.
In the first three years, the increase in the realization rate will be reduced to 1 percentage point, reducing the initial shock, and then increasing it by 3 percentage points.
Currently, the realization rate of houses under 900 million won is 68.1% for multi-family houses and 52.4% for detached houses. Three years later, in 2023, 70% for multi-family houses and 55% for detached houses.
After that, the actualization rate is increased to 90% by 3 percentage points every year.
Houses with more than 900 million won are raised equally toward the target realization rate.
The slope of the graph is slightly different for apartment houses, with all 900 million won or more increase by 3 percentage points per year, but single-family houses increase by 3.6 percentage points per year for 900 million to 1.5 billion won, and 4.5 percentage points per year for single-family houses or more.
If the public price is raised at this rate, the realization rate of apartment houses under 900 million won will reach 90% in 2030.
The actualization rate of 900 to 1.5 billion won will reach 90% in 2027 and apartment houses with 1.5 billion won or more in 2025.
For detached houses, the realization rate of houses with less than 900 million won will be 90% by 2035, the realization rate of 900 to 1.5 billion won houses by 2030, and those with 1.5 billion won or more by 2027.
In the case of land, the actualization rate will be raised by 3 percentage points per year to reach 90% by 2028.
The Ministry of Land, Transport and Maritime Affairs decided to set the annual improvement cap at 6% points, which is twice the average increase, in consideration of the burden from the soaring public price of real estate with a significantly lower realization rate.
The fluctuations in the published price according to the realization are expected to be 3-4% per year for apartment houses, 3-7% for detached houses, and 3-4% for land.
Houses with a market price of less than 900 million won will rise to 1~1.5% per year for the first three years, but among detached houses, those with a market price of more than 900 million won are expected to see a significant increase in the public price, at 4-7% per year.
The published price realization plan is applied from the calculation of the published price in 2021.
In addition, the government decided to cut the property tax rate by 0.05 percentage points for three years for houses with a public price of less than KRW 600 million owned by one householder.
The party government has been debating whether the property tax rate cut price range will be less than 900 million won or less than 600 million won, and as a result, it has been decided as a house with less than 600 million won.
In this case, a maximum of 30,000 won for the public price of 100 million won or less, 30,000 to 75,000 won for 100 million to 250 million won, 75,000 to 150,000 won for 250 million to 500 million won, 5 150,000 to 180,000 won will be deducted from billion to 600 million won.
The reduction rate is 22.2~50%.
Houses with an official price of 100 million won or less will receive a 50% reduction in the amount of money themselves.
Due to the nature of excess progressive taxation, the higher the house price, the lower the reduction rate.
The Ministry of Public Administration and Security predicted that most 1st homeowners could benefit from this tax rate cut.
Based on the property tax imposed this year, the Ministry of Public Administration and Security explained that out of the 18.86 million households per person per person, one person per house with an official price of KRW 600 million or less (13 million households).
The Ministry of Public Administration and Security estimates that this will result in a tax support effect of KRW 477.8 billion per year and KRW 1.4 trillion over three years.
The tax rate cut will be applied for three years from next year to 2023, and will be reviewed for extension after taking into account changes in the housing market and the effect of realizing the published price.
The reduced tax rate will be applied from the property tax imposed next year.
The tax base date is June 1.
To this end, the Ministry of Public Administration and Security is planning to discuss ways to amend the local tax law at the regular National Assembly.
(Photo = Yonhap News)