“The public price increased by 40%?”… Pangyo 10-year public lease,’collective backlash’ against tax burden

Baekhyun 8, public price increased by 40%… “Please lower it to 19%” objection
“The pre-sale conversion price of 58.2 billion won is overvalued” Under civil lawsuit against LH

[서울=뉴스핌] Reporter Kim Seong-soo = When the public rental apartment price increase in Pangyo 10 years reached about twice that of the surrounding complex, residents began to protest collectively.

In Pangyo 10-year public lease, the price of conversion to pre-sale was unreasonably high, and a group civil lawsuit is in progress. However, the rate of increase in the published price is also approaching 40%, and the burden of holding tax (property tax and tax) is rapidly increasing, which is causing double trouble. Residents are urging the government to take corrective action against the increase in the official price as well as the conversion price.

◆ Baekhyun8, public price increased by 40%… “Please lower it to 19%” objection

According to the Association of Mid-to-Large Public Rental Apartments in Seongnam on the 5th (hereinafter referred to as the Association), residents of the Baekhyeon Village Complex 8, Bundang-gu, Seongnam, are planning to submit an objection to the public price for the entire 340 households on the 5th.

They are demanding that the Ministry of Land, Infrastructure and Transport “will reduce the rate of increase in the publicly announced price of Baekhyeon 8 complex this year to within 19.1%, the level of the increase in publicly announced prices of apartment houses in the country.

[서울=뉴스핌] Reporter Seongsoo Kim = 2021.04.02 [email protected]

As of January 1, 2021, the published price (average of the 9th floor) of 101㎡ for exclusive use of Baekhyeon Complex 8 (rental housing) is 1.195 million won, a 39.3% increase from last year. The rate of increase in the published price per year is close to 40%. The public price of 117 square meters dedicated to the same complex was 1,322 million won, an increase of 36.7% over the same period.

The rate of increase in the published price of Baekhyeon Complex 8 exceeds the Gyeonggi-do average and the national average. According to the Ministry of Land, Infrastructure and Transport, the public price of apartment houses this year rises by 19.08% on average nationwide. This is the highest in 14 years since 2007 (22.7%) during the participatory government. Sejong surged 70.68% compared to last year, with Seoul 19.91%, Gyeonggi 23.96%, and Daejeon 20.57%.

On the other hand, neighboring complexes that were not rental housing showed a lower rate of increase than Baekhyeon Complex 8. The published price of 101㎡ for exclusive use of Baekhyeon Complex 9 this year was 1.175 million won, up 24.5% from last year, and the public price of 117㎡ for exclusive use increased 19.9% ​​to 1.38 billion won. The increase in the published price of Baekhyun Complex 8 is 1.6 to 1.8 times that of Baekhyun Complex 9.

The rate of increase in the published prices of Baekhyun 5, 6 and 7 complexes ▲ 25% for 75㎡ for exclusive use and 26.9-29.3% for 85㎡ for exclusive use.

Baekhyeon Complex 8 and 9 are constructed by the same construction company (Daelim Industrial, currently DL E&C), so the balance belts are similar. The difference is that Baekhyeon Complex 9 was a general sales complex, whereas Baekhyun Complex 8 was rented for 10 years and then converted to sales.

In 2019 and last year, the published price of Baekhyun Complex 8 was about 10% lower than that of Baekhyun Complex 9. In 2019, the published price of Baekhyeon Complex 8 was 840 million won based on 101 square meters for exclusive use, and Baekhyeon Complex 9 was 914 million won. Last year, the published price of Baekhyeon Complex 8, based on a dedicated 101 square meter, was 858 million won, and Baekhyun 9 Complex was 944 million won.

On the other hand, this year, the published price of Baekhyun Complex 8 was set higher than that of Baekhyun Complex 9. This year’s published price for Baekhyeon Complex 8 is 1.195 million won for 101㎡, which is more expensive than Baekhyun Complex 9 (1,175 million won). As such, the increase rate of Baekhyeon Complex 8 is inevitably high.

[서울=뉴스핌] Reporter Hak-seon Kim = Minister of Land, Infrastructure and Transport Byun Chang-heum attends the BIG3 Promotion Meeting held at the Seoul Government Complex in Jongno-gu, Seoul on the morning of the 1st. 2021.04.01 [email protected]

◆ “The pre-sale conversion price of 58.2 billion won is overestimated”… Under civil lawsuit against LH

In addition, residents of the Baekhyeon 8 complex are proceeding with a collective civil suit against the Korea Land and Housing Corporation (LH) due to unreasonably high conversion prices. On August 7, last year, the complex filed a complaint with the Seongnam Branch of the Suwon District Court in relation to a lawsuit for registration of ownership transfer as a main lawsuit for a civil lawsuit. The case number is 2020 affixed 407899.

This lawsuit is the content of residents of Baekhyeon Village Complex 8 requesting LH to transfer ownership. Residents disagree with the sale price for sale notified by LH, but expressed their intention to transfer ownership in accordance with a legal procedure.

There are 253 plaintiffs, some of whom have dropped suits. The defendant is the former president of LH Byun Chang-heum (currently the Minister of Land, Infrastructure and Transport). Hwawoo, a law firm, is in charge of the plaintiff’s litigation. The amount that the plaintiff wants to win in the trial (the plaintiff’s price) is 71.9 billion, 77,918,918 won. The date for the pleading has not been set.

The reason they filed a lawsuit was that they could not narrow the disagreement with LH over the conversion price. Minister Byeon has argued that in the case of ’10-year public rental housing’, the conversion price should be calculated as the’appraisal amount’ based on the market price. Accordingly, 10-year public rental housing in areas where the prices of neighboring apartments are relatively high, such as Pangyo, saw a significant increase in pre-sale conversion prices compared to the time of supply.

On the other hand, residents insist that in accordance with Article 57 of the Housing Act, the’sale price ceiling system’ should be applied to the sale conversion price of medium and large public rental housing built on public housing sites.

They argue that LH has unilaterally enforced the unfair conversion procedure for sale and has informed the tenants of 340 households in the Baekhyun 8 complex of the overvalued sale conversion price of at least 58.2 billion won. In this way, they explained that the price for pre-sale conversion, which was calculated as a result of LH’s enforcement of the pre-sale conversion procedure in an illegal manner at Baekhyeon Complex, should be canceled.

Residents are planning to file an objection on the 5th in order to lower the rate of increase in public prices as the lawsuit takes time.

An official from the Federation said, “Our residents are in double trouble due to excessive sales conversion prices and publicly increased prices. Unlike the capital gains tax, the property tax is taxed on property held without income, so the government has made a national consensus on the possession tax. If it is not formed, it is only to invade the basic property rights of the people of one household, one house,” he stressed.

“If the government inevitably needs to raise the public price, it will have to determine the rate of increase according to a rational calculation method,” he said. “The rate of increase in the public price should be lowered to within the national average of 19.1%.”

An objection to the published price can be filed until the 5th. Opinions on objections may be submitted by fax or mail to the competent Si/Gun/Gu office or the Korea Real Estate Agency. You can also submit your opinion online on the Real Estate List Price Alert website. Opinion form can be downloaded from the official real estate price notice site or can be obtained by using the form provided in the civil petition office of city/gun/gu offices.

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