Gyeonggi-do, Adjustment of 3,084 Cases of Publicly Announced Price Imbalance

Gyeonggi Province has adjusted 3,084 housing units last year where imbalances in publicly announced real estate prices occurred, in order to enhance the appropriateness and reliability of the publicly announced real estate prices that serve as the basis for calculating taxes and charges.

The housing units with adjusted price imbalances include ▲2,296 units with characteristic mismatches ▲529 units with price inversion phenomena ▲259 units with price imbalances.

Characteristic mismatch refers to a discrepancy between the land characteristics in the publicly announced land price (land only) and the housing price (land + building) for the same parcel. This causes a 'price inversion phenomenon' where the land price is higher than the combined price of land and building.

Price imbalance means a large gap in unit housing prices within areas that have identical land characteristics.

Gyeonggi Provincial Government

For example, two adjacent houses in City A were assessed with land unit prices (KRW/㎡) of approximately 330,000 and 1,000,000, resulting in a gap rate of 67%. Through investigation, Gyeonggi Province confirmed that the price imbalance occurred because different comparable standard houses were selected for the land unit price assessment of the two houses.

To correct such price imbalances, Gyeonggi Province directly conducted balance checks last year together with professional appraisers and notified the results of adjustments for a total of 3,084 houses to the city and county governments. Based on the conveyed adjustment opinions, each city and county will hold deliberations by the Real Estate Price Public Announcement Committee and reflect the results in this year’s individual housing price assessments.

Ryu Young-yong, Director of the Taxation Division of Gyeonggi Province, emphasized, "This year, we plan to expand the individual housing price adjustment project by increasing the number of targets for adjustment," adding, "We will realize fair local taxation through continuous adjustments of individual housing prices and individual publicly announced land prices, which serve as the standard prices for tax imposition."

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