Ministry of Land, Infrastructure ​and Transport Announces Plan to Rationalize Real Estate Assessed Price Calculation System

The ‍Ministry of Land, Infrastructure and Transport has⁢ announced a plan to rationalize the real estate assessed price​ calculation system, with the aim​ of faithfully⁣ reflecting market changes. The plan involves changing the current method of calculating ‌the assessed price⁤ to ⁢increase the market reflection rate every year to a⁢ method ⁣that faithfully reflects market changes.

The investigator will determine the market ‍volatility ‍of each real estate based on market evidence, and ⁣for real estate that is‍ determined to require ​improvement in ​balance, the amount of improvement in balance will be additionally reflected. The Ministry of Land, Infrastructure and Transport will select areas and real estate where ⁢the balance of‌ the publicly announced price has significantly declined and improve it, and ⁢gradually promote improvement in balance ⁢in three stages.

Improving the Assessed Price Calculation Method and Enhancing ⁤Balance

Jin Hyun-hwan, First Vice Minister of Land, Infrastructure⁣ and Transport, stated that⁤ the public disclosure price calculation system needs to be reformed to operate the public⁢ disclosure system more rationally starting next ⁢year. The Ministry of Land, Infrastructure and Transport plans to immediately propose a revision to ‍the Real Estate Public Disclosure ​Act to⁣ introduce a public disclosure price ⁢calculation system according to‍ a ⁤new method.

The‌ rationalization plan is a specific implementation plan to implement the abolition of⁤ the plan to make public prices more realistic, as per the presidential campaign promise and ⁣national task. The plan was prepared through research services, expert advice, a​ public‌ awareness survey, and deliberation by ​the Central Real ⁤Estate Price Publication Committee.

Reforming the Public Offering Price Calculation System

The public offering price⁢ calculation ⁣system will be reformed to focus on improving ⁢the⁣ balance of the public⁢ offering price rather than ‍artificially increasing the public offering ​price. The ⁣investigator determines the market volatility of each real estate based on market evidence, and additionally reflects the improved balance for real‌ estate that is determined to require improved balance.

This‌ method is advantageous in securing the credibility ‍of the public⁢ offering price ​since ‌the public offering price‌ fluctuates at a level similar to the change in market value. The public offering price is calculated based‌ on the level prior to the introduction of ​the realization⁢ plan, which is expected to minimize the occurrence of the phenomenon of the public offering price reversing the​ actual ⁣transaction price.

Gradual⁢ Improvement of Balance in ‍Three Stages

In the first stage,⁣ the public announcement price (draft) entered by the investigator at the city/county/district level is evaluated, and areas that fall ​short of the balance evaluation criteria are selected as in-depth review areas. In the second stage, the public announcement price (draft) of real‍ estate with low balance selected centered on the in-depth review area is⁣ requested to be reassessed through‍ deliberation by the Central Real Estate Price Disclosure Committee.

In ​the⁢ third stage, external experts⁣ such​ as university professors conduct a final review of the investigator’s⁤ reassessment (draft), and⁣ the Ministry of Land, Infrastructure and Transport confirms the​ public announcement ⁤price‌ (draft)‍ for inspection.

Expected Benefits ​of the Rationalization Plan

If the rationalization plan is implemented, concerns about unreasonable ⁤increases in property taxes unrelated to housing ‍price fluctuations are expected to be alleviated. The publicly announced price⁣ is expected to fluctuate similarly to the level of market change and the balance is improved according to international standards, which is expected to contribute‍ to improving the⁣ predictability and reliability of the publicly announced price.