Listed prices of Korean apartments fall by the most on record

[Photo by Yonhap]

South Korea’s officially announced housing prices, or market listed prices for apartments, multiplex houses and other shared residential buildings for this year have been set at an average of 18.63 percent lower than last year, a record drop due to a significant fall in housing prices and implementation of the government’s tax reduction policy to lower property tax burdens to 2020 levels.

As the listed housing prices, which serve as the basis for property tax, are set lower, the property tax for a homeowner, which includes the comprehensive real estate tax, is expected to decline by over 20 percent this year, falling below 2020 levels.

The Ministry of Land, Infrastructure and Transport said on Thursday that it would finalize the officially posted price of shared residential buildings on Friday based on opinions from homeowners and local governments.

The average price decline in the posted price of apartment buildings in Seoul was finalized at 17.32 percent, down another 0.02 percentage points from the preliminary plan of 17.30 percent.

The listed price of apartment buildings in Busan, Daejeon, Sejong and North Chungcheong Province also fell by an additional 0.03 to 0.04 percentage points.

Sejong, where house prices fell a lot in the past year, has the largest decrease in listed prices, followed by Incheon, Gyeonggi and Daegu.

Homeowners who disagree with the listed price can send an appeal to the ministry or a local or municipal government by May 30.