Kim Soo-sang, head of the Ministry of Land, Infrastructure and Transport, the head of the Ministry of Land, Infrastructure and Transport, explains the controversy over the published price in the press room of the Ministry of Land, Infrastructure and Transport of the Government Complex Sejong on the 6th. News 1
The government actively refuted the claims of some local governments, such as Seocho-gu, Seoul and Jeju-do, that “the publicly priced apartment prices are wrong,” saying, “It was an appropriate calculation considering the surrounding market price.” However, regarding a specific case, the two sides interpreted differently and made an error. It is difficult to discern whose claim is’fact’ because it is a way of pointing out.
Local governments and governments criticize and refute’fierce battles’
On the 6th, the Ministry of Land, Infrastructure and Transport held an emergency briefing on public housing announcements at the government’s Sejong Government Complex, and the day before, Seocho-gu and Jeju-do’s criticisms were met in detail.
The previous day, Seocho-gu claimed that some apartment complexes had a realization rate exceeding 90%, which was calculated higher than the actual transaction price. According to Seocho-gu Office, the actual transaction price of 80.52m2 for apartment A in Seocho-dong was 1.26 billion won last year, and the official price in 2021 was set at 1.538 billion won. The published price realization rate reaches a whopping 122.1%.
However, the Ministry of Land, Infrastructure and Transport did not regard the actual transaction price of Apartment A as 1.26 billion won as an appropriate price. “Considering that the 26 pyeong apartment built in 2017 was actually sold for 1.7 billion won, and the jeonse price of the complex was also formed at about 1.1 billion won, the actual transaction price of 1.26 billion won can be seen as an appropriate market price. “No,” he refuted.
Jeju Island argued that there was a big difference in the rate of fluctuations in published prices for each line even within the same apartment complex. In fact, it was pointed out that the public price of lines 1 and 4 of some apartment specific agreements increased by 6.8%, while lines 2 and 3 decreased by 11.5%, indicating that the investigator’s expertise was concerned.
Accordingly, the Ministry of Land, Infrastructure and Transport said, “The area of lines 1 and 4 (33 pyeong) and lines 2 and 3 (52 pyeong) are different, and according to the KB/Korea Real Estate Agency market price information, the actual price of the 33 pyeong rose and the 52 pyeong fell.” Even within the same complex, public price fluctuation rates may vary depending on regional preferences for equilibrium and individual characteristics.”
The doubts that still remain
In Seocho-gu, the workshop continued even after the publicly announced price (1,16 billion won) of the 5th rental apartment complex of the Korea Land and Housing Corporation (LH) exceeded the nearby pre-sale apartment Seocho Hills (982 million won). Seocho-gu Office pointed out that “the rental apartment owner is LH, so residents will not object to the increase in the public announcement price, and that the public announcement price has been intentionally raised in order to increase the price for the conversion of rental apartments in the future.”
Accordingly, the Ministry of Land, Infrastructure and Transport argued that “LH Complex 5 proposed by Seocho-gu is a pre-sale house by the land rental unit sold in 2011, and is not a general rental house.” did.
Despite these criticisms and clarifications, consumers still have doubts about the quoted price’calculation in the dark’. This is because public prices for the same complex, floor, and area are often calculated differently, and controversy over calculating the disclosed prices is repeated every year.
Accordingly, the government plans to disclose the basic data for calculating the public housing price on the 29th, saying, “This year’s rate of realization of the official price has been achieved at the level of 70-80%.”
However, for a large complex with a large volume of transactions, it is possible to calculate relatively objectively, but it is difficult to identify the market price when there are few transactions, such as Seocho-dong Apartment A, and it is difficult to present a specific basis. An official from the Ministry of Land, Infrastructure and Transport also said, “It is difficult to say concretely about the market price and the ratio of realization.”
Kim Ji-seop reporter [email protected]
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