HUG improves high sales price screening system… 90% upper limit of surrounding market price

Input 2021.02.09 18:42

In the future, the sale price of apartments in the high sale price management area is expected to reflect up to 90% of the price of nearby apartments. The Housing and Urban Guarantee Corporation (HUG) announced on the 9th that it will completely improve the high sales price screening system from the 22nd.

Until now, there have been criticisms that HUG’s pre-sale price has hindered the incentive of private businesses to supply housing. Since the specific criteria for screening are not known, doubts about the transparency of the screening have been raised continuously.

Accordingly, HUG first established a management standard according to the fluctuations in the sales price by considering a certain percentage (85 to 90%) of the surrounding market price as an upper limit when examining the high sales price. A total of two comparative business sites, one for sale and one for completed, were selected to reasonably calculate the sale price by reflecting both the sale market and the existing housing market.

Previously, in regions where sales continued within a year, there was a problem that the sales price was fixed at a certain level and the difference with the market price expanded. Areas with infrequent pre-sale were judged based on the low housing prices in the vicinity, and there were many demands for improvement due to the large difference in pre-sale prices from the central area within the same city or district. In addition, as the pre-sale price limit system for private residential lands was expanded last year, areas with the cap system were excluded from the examination of high pre-sale prices.

HUG said, “Through this improvement, we expect that the excessive difference between the pre-sale price and the market price will be compensated.” We will improve supply incentives.”

In the future, HUG will set the evaluation criteria as ▲location, ▲complex characteristics (75% in scale, 25% in building-to-land ratio), ▲business stability (75% in HUG credit rating, 25% in construction capability evaluation ranking), and the neighboring business sites as points by item. After evaluation, it was decided to select the pre-sale/completed business site with the smallest difference in total score as the comparative business site. When selecting a comparative business site, the location, complex size, and brand have been evaluated in three stages, and a complex with two or more similar items to the business site for guarantee has been selected as the comparative business site.

In addition, even if the pre-sale price is adjusted for businesses that are superior to or inferior to the comparative business sites, it will be quantitatively adjusted according to the difference in scores to eliminate the arbitrariness of the review as much as possible. The screening standards have also been disclosed only rough guidelines, but through this system improvement, the standards have been decided to be disclosed in principle.

In the past, each branch of HUG performed high-sales price examination, but in the future, the branch will be in charge of consulting with the housing business, and a dedicated organization will be installed at HUG headquarters.

HUG said, “If the screening criteria are released, the predictability of the high pre-sale price will increase,” he said. “We plan to secure public trust through transparent system operation by reinforcing the objectivity and expertise of screening, which has been controversial.”

HUG’s high pre-sale price review is applied when a pre-sale guarantee is issued in a high pre-sale price management area (except for areas where the pre-sale price limit is enforced), and this revision of the high pre-sale price review rule is scheduled to take effect on the 22nd after a grace period.

On the other hand, there was controversy when’Banpo Raemian One Bailey’ in Seocho-gu, Seoul, which is subject to the pre-sale price limit on January 8, was approved by the Seocho-gu Office for general pre-sale prices at 56.6 million won per 3.3㎡. This is because the pre-sale price is set at a price 15.9% higher than the pre-sale price calculated by HUG, which manages the high pre-sale price of 48.91 million won. In response to this, the Ministry of Land, Infrastructure and Transport said, “In the evaluation of Seocho-gu (pre-sale price limit), the increase in land price due to the recent increase in the surrounding house price and the additional cost by designating a special construction zone were reflected.” Direct comparison is not appropriate.”