National Standard Detached House Official Price Up 4.47%... Chairman Lee Myung-hee's Residence Ranks First

Chairman Lee Myung-hee's Hannam-dong Residence Tops at 27.7 Billion Won
Seoul, Which Surged Last Year, Rises 6.82%

▲Residential area along Usadan-ro, Hannam-dong, Yongsan-gu, Seoul, where high-end detached houses are located [Image source=Yonhap News]

[Asia Economy Reporter Moon Jiwon] This year, the official price of standard detached houses increased by an average of 4.47% nationwide. The official price in Seoul, which surged by 17.75% last year, rose by 6.82%, showing a significant slowdown in the rate of increase compared to last year.

The official prices in Seoul's Dongjak-gu, Seongdong-gu, and Mapo-gu increased by more than 8%, and the most expensive standard detached house nationwide was again revealed to be the residence of Lee Myung-hee, Chairwoman of Shinsegae Group, in Hannam-dong this year.

The Ministry of Land, Infrastructure and Transport announced on the 23rd the official prices of 220,000 standard detached houses as of the 1st of this month.

According to the Ministry, the official price increase rate for standard houses this year was 4.47% nationwide. Due to small market price fluctuations of standard houses, the increase rate was reduced to about half compared to 9.13% last year. This is also similar to the average change rate over the past 10 years (4.41%).

By region, Seoul rose 6.82%, Gwangju 5.85%, Daegu 5.74%, etc., while Jeju (-1.55%), Gyeongnam (-0.35%), and Ulsan (-0.15%) showed declines.

Among Seoul's autonomous districts, Dongjak-gu showed the highest increase rate with a 10.61% rise in official prices. It was followed by Seongdong-gu (8.87%), Mapo-gu (8.79%), Yeongdeungpo-gu (7.89%), and Yongsan-gu (7.5%).

Considering last year's large increases centered on Gangnam-gu (35.01%), Yongsan-gu (35.40%), and Mapo-gu (31.24%), this is a relatively moderate rise.

By price range, houses priced over 900 million KRW showed higher official price change rates, while those under 900 million KRW showed lower rates.

Houses under 300 million KRW increased by 2.37% compared to the previous year, those between 300 million and 600 million KRW rose by 3.32%, 600 million to 900 million KRW by 3.77%, 900 million to 1.2 billion KRW by 7.90%, and 1.2 billion to 1.5 billion KRW by 10.10%.

On the other hand, ultra-high-priced houses between 1.5 billion and 3 billion KRW increased by 7.49%, and those over 3 billion KRW rose by only 4.78%.

The overall realization rate of official prices for standard houses was 53.6%, up 0.6 percentage points from 53.0% last year.

The Ministry explained, "The realization rate of houses priced between 900 million and 1.5 billion KRW, which was lower than that of low-priced houses, increased by 2.0 to 3.0 percentage points, so the reversal phenomenon of realization rates between mid-low-priced and high-priced houses appears to have been resolved on average."

Among individual standard detached houses, the residence of Lee Myung-hee, Chairwoman of Shinsegae Group in Hannam-dong, Yongsan-gu, Seoul, which has maintained the top spot, saw its official price rise from 27 billion KRW last year to 27.71 billion KRW.

The residence of Lee Hae-wook, Chairman of Daelim Industrial, in Samseong-dong increased from 16.7 billion KRW last year to 17.88 billion KRW, and the residence of Seo Kyung-bae, Chairman of Amorepacific, in Itaewon rose from 16.5 billion KRW to 16.78 billion KRW.

This official price was calculated based on the standards presented in the '2020 Real Estate Price Disclosure and Official Price Reliability Enhancement Plan' announced on December 17 last year. Afterward, it went through a viewing and owner opinion hearing process and was decided through the deliberation of the Central Real Estate Price Disclosure Committee the day before.

The official prices of standard detached houses can be viewed from the 23rd until the 21st of next month, and during the same period, objections can be filed online through the relevant city/county/district civil service offices or the Ministry of Land website.

Objections received by the 21st of next month will be reviewed, followed by another deliberation by the Central Real Estate Price Disclosure Committee, and the final official prices will be announced on March 20.