Ministry of Land, Infrastructure and Transport opposes Park Young-seon’s pledge of ‘10% disclosure price cap’ “If the upper limit is placed, the market price reflection rate is distorted”

Input 2021.04.06 17:50 | Revision 2021.04.06 18:29

Candidate Park Young-seon, the former mayor of Seoul, pledges to’upper 10% increase in public price’

On the 6th, the Ministry of Land, Infrastructure and Transport expressed a negative position on the pledge of the Democratic Party Mayor Park Young-seon and the Democratic Party Mayor of Seoul that they will put a 10% cap on the rate of increase in public prices.

The reason is that if an upper limit is placed on the quoted price, there may be distortions in the market price reflection rate (realization rate).

According to the’Roadmap for Realization of Listed Prices’, it is interpreted that there is no change in the policy of raising the published price of real estate to 90% of the actual transaction price by 2030.

An official from the Ministry of Land, Infrastructure and Transport said, “Some politicians put a cap of 10% per year (there is an upper limit) after a briefing on the controversy related to the published price held at the government’s Sejong Government Complex this afternoon, the government plan. When asked, “Is there any change in this?” he answered, “If you put a separate cap on the official price, it will not be fair,” he said. “It is correct that the official price itself is objectively calculated.”

For example, if one of the two houses with the same disclosure rate in the previous year increased by 5%, which was less than the upper limit of 10%, and the other rose by 20%, the level exceeding the cap, the price of the two houses It is said that the rate of reflection of the market price in the disclosure is inevitably different.

The official said, “It is not a reference to the pledge of a specific politician,” but clarified the objection to the claim raised in the passport to the upper limit of the rate of increase in the official price.

At the same time, the official added, “We have a device to prevent rapid tax charges, such as the upper limit for detailed charges.” If you are concerned about the excessive tax burden, it is explained that it is better to use the’tax burden upper limit’ rather than the official price adjustment. The upper limit for detailed charges is a system that sets a limit so that the property tax for the current year does not exceed a certain ratio (the upper limit for tax burden) compared to the previous year’s property tax. The detailed consultation limit rate is 105% for the public price of 300 million won or less, 110% for 300-600 million won, and 130% for those exceeding 600 million won.

This is also the position of the Ministry of Land, Infrastructure and Transport. The Ministry of Land, Infrastructure and Transport also revealed a negative position on September 21, last year, when the National Assembly Member Yoo Gyeong-joon discussed the amendment to the Real Estate Price Disclosure Act submitted with the content of ‘5% cap’.

At the meeting at the time, an expert member of the National Assembly said, “If we uniformly limit the increase in the listed price of real estate, there is a possibility that unexpected side effects may occur in other areas that use the published price.” In the case of an increase in the tax burden, it would be more appropriate to prepare supplementary measures in the relevant laws.” Accordingly, the then Vice Minister of Land, Infrastructure and Transport Park Seon-ho said, “We accept all the opinions of the expert committee members.”