In the Gangnam area of Seoul, reconstruction complexes are buzzing as the levy for the recovery of excess profits from reconstruction (hereafter referred to as re-entry) is on the countdown for the first time.
The levy for the reconstruction of the old 'Banpo Hyundai' (currently Banpo Centerville Asterium) apartment in Banpo-dong, Seocho-gu is expected to reach hundreds of millions of won per household as soon as next month.
Reconstruction associations across the country have called for system improvement, saying that it is inevitable to pay hundreds of millions of won in fees not only in Gangnam, but also in the metropolitan area and provinces.
Reconstruction levy is a tax system of 10-50% if the excess profit obtained by subtracting the increase in the average house price and development costs such as construction costs from the increase in house price (based on the published price) during the project period (from the time of approval to the completion of the project) exceeds 30 million won.
Introduced in 2006 during the Roh Moo-hyun administration, this system was put on hold during the real estate slump and was revived under the current government.
According to the industry today (16th), the reconstruction charge for the old 'Banpo Hyundai' apartment in Banpo-dong, Seocho-gu will be confirmed and charged as early as March or April.
This is the first case in the Gangnam area.
This apartment, which used to be a 'alone' complex with 80 households and 1 building, has a total area of 60, 82, and 89 m2, and is newly built with a total of 108 households, and occupancy began at the end of July last year.
It also seems to have played a role in the presidential election.
Seocho-gu, the levying authority, has recently received notification from the Real Estate Agency of the published price at the time of completion (completion) of this complex, which is necessary for calculating excess profit, and is reviewing it.
When the price at the end point is confirmed, the published price at the time of establishment of the Promotion Committee (2015) is corrected by substituting the current realization rate, and the final charge is calculated and notified to the cooperative.
Members must pay the levy in cash within six months of the date the rebuild levy is imposed.
Banpo Hyundai was previously notified of KRW 135.69 million as the expected amount to be borne per household in 2018 (at the time of approval for business implementation).
At that time, Seocho-gu and the Ministry of Land, Infrastructure and Transport estimated the published price at the time of completion to be '1.42 billion won'.
However, as house prices soared since then, the excess profit of the cooperative grew larger than expected at the time, and the maintenance industry observes that the actual burden will also greatly exceed the expected amount.
Although the size of the complex is different, the published price of 84 m² for Banpo Riche (1,119 households) located right next to Banpo Hyundai has risen by a whopping 138% from 856 million won in 2015 to 2.04 billion won as of January 2021. I did.
The actual transaction price of this apartment is 3 billion won as of July last year, when Banpo Hyundai moved in.
Since Banpo Hyundai is a small complex and small in size, brokerages estimate that the market price of an 82m2 exclusive area will be around KRW 2.5 billion at the time of moving in.
If we apply the realization rate of last year (78.3%) on the published price roadmap to this amount, the announced price at the time of moving in is around 2 billion won, which is 550 million to 600 million won, which is higher than the estimated price at the time the estimated price was notified four years ago. rises by approx.
An official from the maintenance industry said, "Due to the recent surge in house prices, the levied amount per household, excluding development costs such as construction costs and the normal house price increase rate, from excess profits will be at least 200 million won, and at most 300 million won or more, more than double the expected price." was expected.
According to the National Assembly and the maintenance industry, 63 complexes and 33,800 households nationwide have been notified of the expected re-reimbursement levy since 2018.
Starting with this Banpo Hyundai, the levy for large complexes is scheduled to begin in earnest from this year, and the reconstruction market has fallen into chaos.
J&K Urban Development President Baek Jun said, "If a surcharge of 200 to 300 million won per household is imposed on a reconstruction complex with less than 100 households like Banpo Hyundai, the development profit (excess profit) is expected to be greater in the Gangnam area or a large-scale detached house with a large floor area ratio benefit. "Housing reconstruction complexes can drop hundreds of millions of won in deductible bombs," he said.
Above all, the union is nervous that due to the recent surge in house prices, the levy may significantly exceed the estimated amount notified at the time of the approval of the project.
According to the 'National Solidarity of Reconstruction and Maintenance Projects', which is a group of 72 reconstruction complexes nationwide, the rose apartment in Seongsu-dong, Seongdong-gu is a small complex in the non-Gangnam area, but the estimated amount to be paid per household is 500 million won.
In addition, 400 million won for reconstruction in Banpo 3-ju-gu, Seocho-gu, 300 million won for Daechi Ssangyong 1 in Gangnam-gu, and 275 million won for Samik in Bangbae, Seocho-gu, respectively.
In 2018, for a reconstruction complex in the Gangnam area that the Ministry of Land, Infrastructure and Transport revealed through its own simulation, the estimated amount to be levied was 800 million won per household.
If house prices continue to rise, the actual charges for these complexes could exceed KRW 500 million to KRW 1 billion per household.
Not only in Seoul, but also in the metropolitan area and provinces, as a billion-dollar contribution is announced, the cooperatives are in a state of panic.
As a result of the reconstruction period, the estimated amount to be paid for the reconstruction complex in Yeongtong 2 district in Suwon is 295 million won per household and the Yongmun-dong reconstruction complex in Daejeon is 276 million won.
Anyang, Gwacheon, and Daegu also have many complexes with estimated prices of 100 million won.
The Reconstruction Coalition and the associations are protesting, saying, "There are many places where members of each complex are reconstructing at a high additional cost, and asking them to pay a reconstruction fee of hundreds of millions of won is the same as not doing business."
In the case of Banpo Hyundai, the average number of households for sale is only 12, so the additional contribution of union members alone is an average of 300 million won.
If the reconstruction cost is 300 million won, each household will have to pay 600 million won in additional contributions and taxes.
Lee Soon-bok, president of Banpo Hyundai Reconstruction Cooperative Association, said, "After the reconstruction, our apartment complex has decreased in square footage (84 → 82㎡), and the contribution is high. This is due to the failure of the government's real estate policy, and it is unreasonable to impose a huge tax burden on union members."
Because of this, the reconstruction unions took action in groups such as protests in front of the National Assembly, demanding that the re-exit levy be eliminated or that the implementation period be delayed for at least 5 to 10 years.
Apgujeong Hyundai, Jamsil Jugong 5 Complex, Daechi Eunma Apartment, etc. Gangnam Yonkjawi Complexes are places where the possibility of charges of hundreds of millions of won is raised in the future.
Park Kyung-ryong, secretary of the Reconstruction Coalition, said, "There are many union members who are unable to pay the contribution within six months because they have to pay debt to pay the re-retirement fee, but government regulations block loans. do,” he said.
Real estate experts say that improvement is needed, pointing out that the reconstruction levy is a tax levied on unrealized profits, and the levy is in the form of a 'bubble-up' in which the levy varies by complex depending on the house price at the time of move-in.
If the house price at the time of move-in is high, the excess profit will increase and you will have to pay more taxes.
CEO Baek Joon said, “If you charge a high levy because you moved in when house prices are at a high point, it is questionable whether the levy will be refunded if house prices fall for a long time as the government says. Things are out of balance."
There is also the issue of equity with redevelopment.
The reinstatement levy is levied only on the reconstruction project, and there is no levy for the redevelopment project, which is receiving a large amount of speculative demand, even if it generates high profits for the public interest.
Since the contribution is levied on the union side in a lump sum unit, it is not practically easy for the union to properly distribute the contribution to the members.
It is pointed out whether it is right to pay the same levy even if the balance is the same in situations where the purchase price and the purchase price are different for each member from before the establishment of the Promotion Committee to the time of moving in.
Fides Development CEO Kim Seung-bae said, "Compared to the development levy imposed on the developer (company), the restructuring levy is inevitably a problem of equity because the interests of the members who are the owners of the project differ from each other."
There are also complaints about discrimination from general sellers.
Park Kyung-ryong, secretary of the Reconstruction Coalition, said, "Reconstruction members suffer for a long time and have to pay a contribution to rebuild with their own money. “He said.
The industry expects that the demand for system improvement will grow even more in the coming government as the issue of reintroduction is also mentioned as a presidential candidate's pledge.
Experts are of the opinion that it is necessary to reexamine the method of calculating the levy from the beginning.
Professor Shim Gyo-eon of the Department of Real Estate at Konkuk University said, "The reconciliation surplus profit recovery system is to recover the excess profits resulting from the preferential floor area ratio from the reconstruction project, but it is not fair to consider the market price at the time of move-in at a different time for each complex as development profit and impose a tax. "It is preferable to collect development profits in the early stages of the project by constructing rental housing or collecting cash or donations to public facilities," he said.