Next year, the national standard detached house price will be 5.95% lower than this year.
The published price of standard paper fell by 5.92%.
It is the first time since 2009 that the official price of standard detached houses and land has decreased.
This is the result of the government returning the public announcement realization rate (public announcement price to market price ratio) to the level of 2020 in order to alleviate the burden of holding tax amid the real estate market slump.
The official price is used as a standard for 67 administrative systems, including property tax, comprehensive real estate tax, health insurance premium, and basic pension.
It is expected that the decrease in the public price will slightly lower the holding tax burden.
The Ministry of Land, Infrastructure and Transport announced today (14th) that it will disclose the public price of standard land and standard housing as of January 1, 2023, and receive owner opinions.
Standard land covers 560,000 lots out of 35.02 million lots nationwide, and standard housing covers 250,000 units out of 4.11 million detached houses nationwide.
This is a 'sample' that the government judged to be representative and used as the standard for calculating the publicly announced price.
Once this price is confirmed, the local government sets the official price for individual detached houses and land.
Next year, the standard detached house published price fell 5.95% to the national average.
It is the first time in 14 years since 2009 (-1.98%) that the official price of a standard detached house has declined.
It rose 4.47% in 2020, 6.80% in 2021, and 7.34% this year.
The official price fell the most in Seoul (-8.55%), and the decline was also large in Gyeonggi (-5.41%), Jeju (-5.13%), and Ulsan (-4.98%).
Regions with a smaller decline in the official price than the national average are Jeonnam (-2.98%), Gangwon (-3.10%), and Busan (-3.43%).
The standard detached house announcement price realization rate was 53.5%, which was 4.4 percentage points (p) lower than this year (57.9%).
If the real estate market slump continues, the government believes that a reversal phenomenon in which the official price is higher than the actual transaction price can become frequent, and the government returned next year's public announcement to the level of 2020 before the Moon Jae-in government established a roadmap for realization.
In 2020, the standard detached house public price realization rate was 53.6%, 0.01%p higher than this year.
Even within Seoul, the official price of Gangnam-gu (-10.68%), Seocho-gu (-10.58%), Songpa-gu (-9.89%), Yongsan-gu (-9.84%), and Mapo-gu (-9.64%), where there are many expensive houses, fell significantly.
According to the public announcement realization roadmap, the rate of realization of high-priced detached houses was raised at a faster rate, and as a result of returning it, the official announcement price fell more sharply.
Next year, the official land price for standard paper fell 5.92% to the national average.
It is also the first decline in 14 years since 2009 (-1.42%).
Standard land prices rose 10.35% in 2021 and 10.17% this year, recording double-digit growth rates for two consecutive years.
By province, Gyeongnam (-7.12%), Jeju (-7.09%), Gyeongbuk (-6.85%), and Chungnam (-6.73%) showed the greatest decline.
By use, the decline rate was large in the order of forestry (-6.61%), agricultural land (-6.13%), residential (-5.90%), and industrial (-5.89%).
The rate of realization of standard paper publicly announced next year was 65.4%, 6%p lower than this year (71.4%).
The fact that the disclosure has returned the realization rate to the level of 2020 has had the effect of reducing the standard detached house published price by 7.5% and the standard land by 8.4%.
However, as the market price was judged to have risen slightly, the actual official price decline rate was reduced to the 5% range, which is lower than this.
This means that if the realization rate had not been lowered, the official price of land and detached houses could have risen even in the real estate market downturn.
An official from the Ministry of Land, Infrastructure and Transport said, "The recent sharp decline in house prices is multi-unit housing," and said, "There was no negative market price for single-family homes and land throughout the year."
In fact, if you look at the housing trends announced by the Korea Real Estate Agency, the cumulative increase rate of single-family homes in Seoul from January to October this year is 2.51%.
In October, it fell 0.07% and turned downward.
The national average price of detached houses rose 1.86% from January to October.
Land also rose 2.5% and 2.7% nationwide and in Seoul from January to October, respectively, and was counted as a decline in October.
The period for viewing and listening to opinions on standard land and standard housing prices is until January 2 next year.
Afterwards, it will be announced on January 25 next year after deliberation by the Central Real Estate Price Disclosure Committee.
Standard public housing prices such as apartments, townhouses, and villas will be released in March next year.
Considering the recent sharp drop in house prices, there is a possibility that next year, the official price of an apartment house will fall more sharply than that of standard land and standard detached houses.
The actualization rate is estimated to have a -3.5% level of reduction in the official price of apartment houses next year due to the return to the level of 2020.
In the end, it seems that the extent of the decline in the public housing price will be determined depending on how the market price will be judged in the event of a transaction cliff and whether the decline in the actual transaction price will become steeper.
(Photo = Yonhap News)