Lee Myung-hee's Hannam-dong Home Official Price 27.7 Billion Won '1st Place'... Last Place Jeonnam Sinan-gun 1.7 Million Won

▲ Mansion owned by Chairman Lee Myung-hee in Hannam-dong, Yongsan-gu, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Lee Chun-hee] It has been revealed that the residence of Lee Myung-hee, Chairwoman of Shinsegae Group, in Hannam-dong is the most expensive standard single-family house nationwide for the fifth consecutive year. The official price of this house is 27.7 billion KRW, which is 16,300 times higher than the cheapest standard single-family house located in Sinan-gun, Jeollanam-do, priced at 1.7 million KRW.

The Ministry of Land, Infrastructure and Transport announced on the 22nd that it will disclose the official prices of 220,000 standard single-family houses as of the 1st of this month on the 23rd. Standard single-family houses are sample houses used by the Korea Appraisal Board to determine appraisal values and serve as a basis for local governments to set official prices for individual single-family houses.

The official price of Chairwoman Lee’s Hannam-dong residence this year is 27.71 billion KRW, up 2.6% from 27 billion KRW last year. However, this is far below last year’s increase rate of 59.8%. Since being first selected as a standard house in 2016, her residence has maintained its position as the 'most expensive standard single-family house nationwide' for five consecutive years.

However, when including individual single-family houses, the highest price last year was 39.8 billion KRW for a Hannam-dong house owned by Lee Kun-hee, Chairman of Samsung Electronics, and it seems likely to retain its position this year as well.

On the other hand, the cheapest standard single-family house nationwide was found to be located in Heuksan-myeon, Sinan-gun, Jeollanam-do. The official price of this house was 1.7 million KRW. Based on the official price, selling Chairwoman Lee’s residence could buy 16,300 houses in Sinan-gun.

Following Chairwoman Lee’s residence, the second most expensive nationwide was the Samsung-dong residence of Lee Hae-wook, Chairman of Daelim Industrial. This house, selected as a standard single-family house for the first time last year, saw its official price rise 7.1% from 16.7 billion KRW last year to 17.88 billion KRW this year, maintaining second place nationwide for two consecutive years.

Similarly, the Itaewon-dong residence of Seo Kyung-bae, Chairman of Amorepacific, which was also first designated as a standard single-family house last year, was priced at 16.78 billion KRW, up 1.7% from last year, maintaining third place. Fourth place went to the Itaewon residence formerly owned by the Kyungwon Century owner family, priced at 16.04 billion KRW. Although it jumped 40.5% last year, this year’s increase was only 2.8%.

The Samsung-dong residence owned by Ahn Jung-ho, CEO of Simmons Bed, was priced at 14.67 billion KRW this year. Its official price rose 7.1% from last year, moving up one rank from sixth place last year. Conversely, the Hannam-dong residence owned by Park Chan-gu, Chairman of Kumho Petrochemical, which was fifth last year, rose only 2.9%, recording 14.61 billion KRW and ranking sixth.

Following these, the Hannam-dong residence owned by Lee Mi-hyang, wife of SPC Chairman Heo Young-in, was priced at 13.52 billion KRW (up 3.2%), and the Seongbuk-dong residence of Lee Jong-cheol, Chairman of Poongnong, was priced at 13.32 billion KRW (up 0.9%), placing them within the top ten.

These chaebol family houses showed a high increase rate of around 50% last year amid criticism that the market reflection rate of single-family houses is low. This year’s increase rate appears to be modest due to this base effect.

There was a significant difference in the regional distribution of high-priced houses over 2 billion KRW. Among the 220,000 standard single-family houses nationwide, only 541 houses (0.2%) had official prices exceeding 2 billion KRW. Of these, 519 houses, or 95.9%, were concentrated in Seoul. In contrast, Daegu, Incheon, Gwangju, Daejeon, Ulsan, Sejong, and Gangwon, Chungbuk, Chungnam, Jeonnam, Gyeongbuk, and Gyeongnam provinces had no houses priced over 2 billion KRW.

Regional price differences were also evident in average official prices. While Seoul’s average was 561.12 million KRW, Jeonnam’s average standard single-family house official price was only 35.28 million KRW. Based on average prices, one single-family house in Seoul could buy 16 houses in Jeonnam.

The rate of change also showed polarization. The nationwide standard house price increase rate this year was 4.47%. Among them, Seoul showed the highest increase rate nationwide, rising 6.82% this year following 17.75% last year. Gwangju (5.85%) and Daegu (5.74%) followed. In contrast, Jeju (-1.55%), Gyeongnam (-0.35%), and Ulsan (-0.15%) saw official prices decline. This contrasts with last year when all metropolitan local governments saw increases.

The official prices of standard single-family houses can be viewed from the 23rd until the 21st of next month on the Ministry of Land website, the Real Estate Official Price Notification website, or at the civil service offices of the city, county, or district where the house is located. If there are objections, they can be filed during this period at the relevant city, county, or district civil service office, the Ministry of Land website, or by fax or mail. Objections received within the period will be re-investigated and re-assessed, followed by a review by the Central Real Estate Price Notification Committee, with the final official price to be announced on March 20.