Announced land prices surge… Why is the land compensation for the 3rd new city the same?

[이데일리 강신우 기자] Although the publicly announced land price for the standard land surged next year, the land compensation for the third new town is not expected to change. This is because the base date for land compensation has already been set. However, experts analyze that some of the changes in the land price market price will be reflected.

On the 24th, the Ministry of Land, Infrastructure and Transport began to view the owners of the publicly announced land price of 520,000 standard parcels as of January 1 of next year. Next year, the publicly announced land price of standard land nationwide will increase by 10.37%. It is the highest in 14 years since it recorded 12.40% in 2007.

(Graphic = Reporter Donghoon Lee)

Sejong City, which has the highest rate of increase in standard land prices by province, rises 12.38%. Sejong City is an area where real estate prices surged due to the rumors of a water transfer. This was followed by 11.41% in Seoul, 11.39% in Gwangju, 11.08% in Busan, and 10.92% in Daegu. Chungnam rose by 7.23%, the lowest in the country.

Gyeonggi Province, when the 3rd new town enters, rises 9.74%. For this reason, in the online real estate community, it was said that the increase in the publicly announced land price is also reflected in the compensation amount. It is argued that the price of nearby houses will increase with the increase in the price of apartments sold by the amount of compensation.

However, in principle, the rate of increase in publicly announced land prices next year is not reflected in the land compensation amount for the third new city. In accordance with the’Land Compensation Evaluation Guideline’ of the Korea Appraisal Appraisers Association, the recently announced land price prior to the notification date of project approval is applied when evaluating the compensation land.

A panoramic view of the 3rd new town in Hanam Gyosan District, which has been covered for land compensation since the 22nd. (Photo = Yonhap News)

The 3rd new towns (Incheon Gyeyang, Hanamgyosan, Namyangju Wangsuk October 2019, Goyang Changneung March 2020, Bucheon Daejang May 2020) have all passed the business approval notice date, so there is no relationship with the changes in the publicly announced land prices next year.

Shin Tae-soo, CEO of land information company Jijon, said, “Since the 3rd new town has already received business approval last year and last year, and the compensation amount is calculated as the publicly announced land price before the date of notification of business recognition, the increase in the publicly announced land price of the standard site for next year has no effect on the change in compensation amount. He continued, “However, the increase in land price can be partially reflected in the evaluation.”

The Korea Land and Housing Corporation (LH) also said that the increase in the market price is not directly reflected, but some increase may be reflected compared to the price of land in nearby regions.

An LH official said, “Because the land in which the third new city is built is for the purpose of public service, the increase in land price due to the implementation of the public service project under the relevant law is excluded from the evaluation.” “We can reflect some of the price increase of the company.”

On the other hand, Hanam Gyosan has been discussing land compensation with the landlord since the 22nd, and Namyangju Wangsuk and Incheon Gyeyang are scheduled to begin the land compensation procedure in the first half of next year.