Enter 2021.01.16 06:00
According to KB Liveon on the 16th, the annual cumulative increase rate of the Seoul Row House Sales Price Index last year was 8.18%. It is five times the rate of increase in 2019 (1.71%).
The minds of homeless end-users looking at this are getting urgent. This is because, as the bull market in the real estate market has continued for six years since 2015, there has been a growing sense of anxiety that if we postpone more, we will not be able to get a home forever.
Real estate experts cite three reasons for the rise in villa sales last year. It is said that the demand for self-ownership, exhausted from rising house prices, the demand for investment aimed at public redevelopment, and the demand for rental business by buying villas instead of apartments, all increased.
The main reason for the huge rise in the price of a row house, experts point to the fact that the number of people who thought that they should not postpone the arrangement of my house any longer as the house price and the rent for rent have risen steadily. According to the Korea Real Estate Agency, last year, the national house price rose 5.36%. This is the highest increase rate in 9 years since 2011 (6.14%).
In addition, the introduction of the second lease method, such as the introduction of the ceiling system for jeon and monthly rent and the right to request contract renewal, increased the burden of jeon and monthly tax, which also boosted demand for self-purchase. After July, when the second lease law was passed, the number of rental houses that can be newly contracted temporarily declined, causing prices to fluctuate.
In particular, as loan regulations were tightened, it became more difficult to buy apartments, and many consumers turned to row houses. In accordance with the December 16 measures introduced in 2019, the mortgage loan ratio (LTV) for houses with a KB market price exceeding 900 million won (LTV) was limited to 20% and apartments exceeding 1.5 billion won to 0%. This is the reason why homeless end users, who lack funding, have no choice but to find row houses.
Young-jin Ham, head of Jikbang Big Data Lab, said, “Many of those who belatedly start preparing my homes have no choice but to approach mid- to low-priced homes. It is best to arrange my home through subscription, but from the standpoint of consumers who are not subject to conditions such as additional stores, It is best to buy a house that has risen less, so there will continue to be a buying movement with a row house.
② I’ll give you an old house, a new house… Public redevelopment investment demand
Investment demand has also added to the movement of end users. The government announced that it will expand the supply of housing through public redevelopment, public reconstruction, street housing maintenance, etc., with the August 4 supply plan last year. On the 15th, the grand prize for the public redevelopment pilot project was announced.
In the case of a new town off area where old villas are lined up, maintenance projects through public redevelopment can be a good option. The government plans to give incentives to businesses that promote public redevelopment, such as increasing the use area, increasing the floor area ratio, easing donations, excluding the upper limit on pre-sale prices, financing project costs, and providing fast licensing. In some areas of Eunpyeong-gu and Seongbuk-gu, which were already selected as candidates for the public redevelopment pilot project, the asking price of row houses in some areas rose to KRW billion.
Row houses are also likely to benefit from an increase in the area ratio in the station area, which will be included in the housing supply plan that the government will announce before the Lunar New Year. There are also real examples. When the government announced that it would provide incentives such as easing the floor area ratio in case of building publicly supported private youth rental housing, Seocho Villa, 1310-15 Seocho-dong, Seocho-gu, Seoul received a floor area ratio of 850%. There is a plan for a 20-story building in this area.
KB Kookmin Bank Senior Real Estate Expert Park Won-gap said, “There is a risk of buying a villa for those who have not been interested in real estate investment in a situation where they do not know whether it will be public redevelopment or not.” I can do it.”
③ Benefits for rental companies that are still valid
The fact that the rental business system, which has significantly reduced its benefits, is still alive, which is why investors are concentrated in the row house sale. When the government reorganized the rental business system in July last year, it decided to maintain the benefits of the rental business of houses excluding apartments.
Although the mandatory rental business period has increased from 8 to 10 years, rental business owners who purchase row houses are still eligible for reductions in acquisition tax, property tax, and capital gains tax. When calculating the comprehensive real estate tax, it is not included in the sum of the tax base. In a period when housing prices rise or rental housing becomes scarce and rents rise, the benefits of rental companies are inevitably greater.
An official in the real estate industry said, “There are cases in which people who bought old villas and rented the rent and decided that public redevelopment or small-scale reconstruction after some time would have less tax burden and could benefit from market tax gains are actively registering as rental companies. “I said.
Real estate experts believe that the rising price of townhouses could continue for the time being. This is because the reasons for raising the price of row houses last year are not expected to disappear immediately. However, many end-users are advised to invest in consideration of the actual living environment and location, rather than buying an old villa aimed at public redevelopment. There was also an advice that a row house should be meticulous to cover the boulders because the currency is not better than apartments.
Commissioner Won-gap Park advised, “Unlike apartments, apartment houses are a housing product that is not easy to value,” he advised. “If you are an end user who wants to buy, you should carefully consider whether it is comfortable to live in real life and what is the traffic conditions.”