Reduced public price, impact on the future real estate market?

Photo = Daily Korea Reporter Lee Hye-young

[K그로우 김택수 기자] This year, as the price of flats (apartments and townhouses) publicly announced across the country fell by 18.61%, the biggest ever, the burden of holding taxes (comprehensive real estate tax + property tax) is expected to drop significantly from to compare with last year. Accordingly, real estate experts, consumers, and the industry are well aware of the future impact on the real estate market.

First of all, in the case of one home owner, the ownership tax burden this year is expected to decrease by up to 40% compared to last year. In the case of apartment owners with one house per household (publicly quoted price of 1.12 billion won), the withholding tax was 4.03 million won last year, but this year is expected to drop from 1.23 million won to 2.8 million won. The tax burden will be reduced from the government’s target of 2020 (3.72 million won).

A reduction is also expected in the number of houses subject to comprehensive real estate tax. Last year, 456,360 homes exceeded 1.1 billion earned in total real estate tax. This year, this standard has risen to 1.2 billion won, making only 231,564 households subject to a comprehensive real estate tax.

By region, Sejong (-30.68%), Incheon (-24.04%), Gyeonggi (-22.25%), and Daegu (-22.06%) showed the highest rate of decrease in the official price, and compared to the previous year, the rate of increase in the official price was high in 2022. In Incheon (+29.32% → -24.04%) and Gyeonggi (+23.17% → -22.25%), the reduction was significant.

The official public price in Seoul fell by 17.30% on average. The official price fell in the order of Songpa-gu (-23.20%), Nowon-gu (-23.11%), and Dongdaemun-gu (-21.98%).

As a result, among experts, the general hope is that as the rate of decline in house prices slows and the burden of withholding taxes decreases, frequent home owners will get the quick sale, and the number of quick sales on the market will decrease

Kim Hyo-sun, a senior member of NH Real Estate, said, “The official price, which is inevitably proportional to the price of a house, is 19.05% in 21 and 17.20% in 22, and due to the quick realization, it is affecting not only real estate related taxation but also various social security systems, creating a social burden. “Specifically, the fact that the official land price Sejong, Incheon, Gyeonggi, Daegu, etc., where the recent price reduction is large and the official price increase rate was high in the past, decreased more sudden, as the real estate market fell rapidly last year, reflecting the reduction in the market price as it was in the officially announced land price, which happened,” he said.

Senior Commissioner Kim said, “With this official price reduction, the tax burden is expected to be greatly alleviated without the need for a separate review of the law, so the pressure of selling as a quick sale may be be reduced.” The situation is not good, so the market operation is expected to be limited. “

Yoon Ji-hae, senior researcher at Real Estate R114, said, “According to the announcement of a larger-than-expected adjustment in the official price of apartment houses, some of the multi-home properties may be prone to recovery.” ” There is an increasing possibility that the end users will also exclude the withholding tax factor from the decision-making factor and consider other factors (selling/sale price, loan interest rate, loan regulation) more heavily in order to prepare a house,” he explained. .

Senior researcher Yoon said, “As transaction tax and possession tax decreased (acquisition tax due to the effect of unregulated areas, up to 2 houses, transfer tax due to the extension of heavy penalty ban by 1 year, and possession tax due to the adjustment of the official price, etc.) The number of landlords is expected to increase,” he said. a high possibility of an inflow of demand compared to other regions, and the increase in the number of transactions is likely to reduce the size of the drop in prices as a reaction.” he said.

Some advise that one variable wait until the withholding tax is completed. This is because the fair market value ratio, which applied 45% for property tax and 60% for comprehensive real estate tax last year, has not yet been confirmed. A property tax is announced in April, and a comprehensive real estate tax is announced during the first half of the year, but it is argued that there is a possibility that the government, concerned about a decrease in tax revenue, can apply a higher fair market value. ratio.


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