It is analyzed that the rate of increase in public apartment prices in Seoul this year is higher in the Gangbuk area, which is a residential area for the low-income district, than in the Gangnam area, and the subject of taxation has widened. In particular, residents in the Gangbuk region are protesting, saying they don’t know why they have to pay more taxes, even though they haven’t raised their house prices.
On the 16th, a complaint was posted on the bulletin board of the website of Nowon-gu Office,’I wish to the mayor,’ saying,’Ask the mayor’s opinion on the increase in the public announcement price of the apartment.’
A civil petitioner who identified himself as a native of Nowon-gu argued that it is unpredictably excessive that the public price, which is the basis of the tax increase, rises more than 30% in one year.
“There is a concept that property taxes related to real estate share the cost of maintaining social infrastructure, but it is difficult to understand that infrastructure expenditures have increased as much as the public announcement increases,” he said. Nowon-gu has the highest rate of increase in public housing prices this year, 34.66%, among the 25 autonomous districts in Seoul.
They argued that if the central government calculates the public price and cannot do anything about it, what does local autonomy mean? He said, “The central government is also the Democratic Party regime, so is this policy for citizens?” An official at Nowon-gu Office said, “The department will understand the situation and come up with a response plan.”
In addition to Nowon-gu, Seongbuk-gu (28.01%) and Dobong-gu (26.19%) ranked 2nd and 5th in the autonomous district of Seoul, respectively.
The rate of increase in publicly announced prices is high across Seoul, and the number of objections is expected to increase rapidly. The rate of increase in public apartment prices in Seoul last year was 14.73%, which was lower than that of this year (19.97%), but the number of objections was 37410, up 30% (8675) from the previous year. This is the highest since 2007 (53,355 cases), when the rate of increase in publicly announced prices was the highest.
However, of the opinions received, the acceptance rate was only 2.4%, and the objection was not accepted than the previous year (21.5%). About 70 complexes, such as Gangnam area and Mokdong new city apartment complexes, have filed objections against the public announcement.
On this day, there were many articles in the real estate community complaining that even if the public price this year is less than 600 million won, even if you receive a property tax reduction, next year, you will also be hit by a small bomb.
One netizen said, “It is said that I pay taxes as much as the house price rises, but what if I raise the official price this way?”
As the public price has soared, some point out that the fair market price ratio should be adjusted to prevent a surge in tax burden. The fair market value ratio is the ratio that sets the tax base (table), which is the basis for imposing taxes. The quoted price is determined by multiplying the quoted price by the corresponding ratio. If this percentage is lowered, even if the quoted price rises, the rating can be lowered and the actual tax paid is reduced. This is not a law, but an enforcement ordinance, so it can be changed by the government’s authority. However, the government plans to increase this ratio, which is applied to the comprehensive real estate tax, to 95%, 5 percentage points from the previous year.
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