Ministry of Land, Infrastructure, and Transport announced on the 15th,’The official price of apartment houses in 2021’… Various reactions poured out
Sejong City’s’median price’ surpassed Seoul for the first time…
Ministry of Land, Infrastructure and Transport explained “Reflecting actual transactions and reflecting reality”… Owners’ opinions received by April 5th
1Housing citizens are dissatisfied with the’increased tax’… Some complexes pointed out the irrationality of valuation
[세종포스트 이주은 기자] On July 20, 2020, in line with the 13th anniversary of the construction of the Happy City, the proclamation of the relocation of the administrative capital of “Democratic Party Representative Kim Tae-nyeon”, and the promise of “League Nak-yeon Lee’s submission of relevant legislation and transfer of the National Assembly.”
This brought about a sharp rise in house prices in Sejong City, which was tied to the nation’s highest level of regulation along with Seoul.
Some central media have even used the expression’Bitcoin in the real estate market = Sejong City’.
It is natural that the governor feels good when the price of his house rises. However, there was also a dark shade of the rising’selling price and jeonse price’, which was close to soaring.
The troubles of young couples and young couples living under the Seoul sky gradually shifted to’Sejong City’, and the barriers to entry for my house arrangements gradually increased. Voices of older generations who are worried about the generation of children who will live in the completion period of Sejong City also flowed out.
More realistically, the rise in the’listed housing price’ throws two negative things to the Sejong citizens living in the present day.
The’tax burden’ of Sejong citizens who live for the purpose of housing rather than investment is becoming a reality that far exceeds the expected value, and is expressed in the form of emotional confrontation between living areas and complexes surrounding the quoted price.
In this regard, the Ministry of Land, Infrastructure and Transport (hereinafter referred to as the Ministry of Land, Infrastructure, and Transport) has put forward a position that the disclosure under the’Real Estate Price Disclosure Act’ on this year’s public price is a proposal for actualization. The realization plan refers to the method of calculating the public housing price for apartments that achieved 90% of the housing market price reflection rate over 5 to 10 years.
A person in charge of the Ministry of Land, Infrastructure and Transport explained, “The actual transaction price is the most important reference material for determining the disclosed price.”
Eventually, the increase in the official housing price in Sejong City was due to a surge in actual transaction prices based on the market quotes.
◎ You said it exceeded the median price of a house in Sejong City,’Seoul City’?
The distribution of public housing prices announced on the 15th is as follows.
Among apartment houses, 92.1% of the housing price of 600 million won or less, which is subject to the special property tax rate, is 1.388 thousand units, and 70.6% of Seoul is 18.25 million units. The median public price was presented at an average of 160 million won nationwide.
However, what should be noted here is the fact that Sejong City has 420 million won and Seoul City has 380 million won. For the first time since 2006, when the price of apartment houses was announced, Sejong City changed its position.
Moreover, Sejong City recorded a record-high 70.68% of the rate of change in the public price compared to the previous year.
By region, it was almost four times ahead of the next rankings, Seoul (19.91%) and Busan (19.67%), and significantly exceeded the national average rate of change of 19.08%. As mentioned earlier, it is the level of soaring.
◎ Sejong Citizens Appeal for Details on’Increase in Public Prices’
I looked into the first phenomenon. Citizens’ opinions on the’review of the publicly announced prices for apartment houses for 2021′ announced by the government on the 15th are continuing day after day.
“I bought a house with cheap money, but the tax only gets higher as time goes by. The tax has doubled compared to 2018.” One citizen made this appeal.
Other citizens said, “I don’t know how the official price in Sejong City is higher than in Seoul,” from “It was too high even if the ownership tax went up”.
Actually, this magazine analyzed the situation directly.
In the case of Apartment A, 96㎡ in Arum-dong, Sejong-si, the publicly announced land price in 2018 was 294 million won and property tax was 560,000 won, but the property tax rose 170,000 won to 730,000 won this year.
Converted to the forecast (average price) for 2022, it rises again to 1.07 million won from 542.49 million won. It means paying taxes that doubled in four years.
The official price for the middle floor of the same apartment also rose from 275 million won last year to 475 million won this year, a year-on-year increase of 200 million won.
Dodam-dong 85㎡ apartment B, the official price of 300 million won in 2018 rose to 4729.2 billion won this year, and the property tax jumped from 580,000 won to 860,000 won. The property tax to be levied in 2022 is 1.68 million won, which is expected to result in a tax bomb that has risen more than 1 million won a year.
Citizens are expressing doubts that’the publicly announced land price of Sejong City was set higher than that of the metropolitan area’. Dissatisfaction among residents of 1 house is high, second only to those with more than 2 houses.
Citizen E criticized, “The acquisition tax when buying a house and the capital gains tax when selling a house are insufficient, so the tax is going beyond common sense just because of living in a single house.”
Another citizen, Mr. F, said, “I think the general real estate tax is’double taxation’. It is true that even though I did so just because I was told to own one house, it was true that the increased tax would be borne.”
◎ In the case of some complexes, the’public announcement price’ became a civil-private conflict.
The unexpected civil-private conflict arises from the result of’disclosure price’, which is out of common sense.
Basically, it is understandable that property taxes vary widely depending on the lake and scent, even in the same complex and in the same dong. In addition, the difference in the published price for each household is acceptable depending on the degree of personal additional property, under the age of 60, and the period of holding a house.
C, a citizen of Boram-dong, expressed the unconcerned part of the recently announced land price.
He said, “The public land price standard is unreasonable from the perspective of residents,” he said. “In the case of Boram-dong, only 10 units are set high. Even if the complex next door trades more than 400 million won than the actual transaction price, the official price is 10 units, but it is set higher.”
He said, “I grasped the irrationality of the publicly announced land price last year and filed an objection as a group to the Ministry of Land, Infrastructure and Transport, but it was not reflected at all, and this year was reflected higher.”
The civil-private conflict is also partially expressed as an emotional battle between’homeless vs. homeless’.
As of 2019, 46.7% of Sejong City’s population is homeless. This is the second largest percentage after Seoul. As there were not many pre-sale quantities in 2020, it is an analysis that this reality would not have improved significantly.
Some homeless people responded, saying,’If the price of a house rises that much, it is natural to pay a lot of taxes.’
You can view and appeal until April 5th. Ⓒ Real Estate Public Price Alert website
Meanwhile, the Ministry of Land, Infrastructure and Transport plans to proceed with a procedure to hear opinions from the owners and local governments by April 5 on the’Public housing price (proposal) as of January 1, 2021, which was released on the 15th.
You can view the published price (draft) and apply for objection at the website (www.realtyprice.kr) and the Civil Affairs Office of the City/Gun/Gu office in which the apartment is located during the same period.
‘The publicly announced price of Sejong City in 2021’ has risen sharply. It is the time when the voices of ‘taxes only rise’ are being heard everywhere, leaving the Corona 19 and the difficult circumstances of the citizens behind.
[공시지가 산정과 관련한 주요 내용]
◎ One-householders with a publicly announced price exceeding 900 million won, or multi-households with a combined publicly announced price of over 600 million won, are subject to comprehensive real estate tax.
◎ 1 Homeowner can benefit from deduction of 20~40% for each age group for those aged 60 or older.
◎ Long-term holders of 5 years or more can also deduct 20-50% depending on the retention period. Increased the combined upper limit of long-term retention and deduction for the elderly to 80%
* Senior deduction: 60-65 years old 20%, 65-70 years old 30%, 70 years old or older 40%
* Long-term holder deduction: 5 years or more 20%, 10 years or more 40%, 15 years or more 50%
◎ If one house is owned under the joint name of a couple, it is possible to apply as a 1 house 1 house. Basic deduction of 900 million won in public price and tax deduction for the elderly and long-term holders is possible
◎ 1 For homeowners, the increase in property tax plus comprehensive real estate tax compared to the previous year is limited to 50% or less.
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