[Beginner's Guide to Real Estate] Is the Officially Announced Price Too High? Try 'Submitting Opinions' and 'Filing Objections'

Viewing of 2020 Officially Announced Prices for Apartment Complexes from the 19th
If You Think Prices Are Too High, Submit 'Opinions'... Accepted Until April 8

Last Year, a Total of 28,753 Submissions Received... But Only 21.8% Were Accepted

Even If Opinions Are Not Accepted and Official Prices Are Announced, 'Objections' Can Be Filed
However, Only 0.8% Were Reflected Last Year After Reinvestigation

[Asia Economy Reporter Lee Chun-hee] When you become a real estate reporter, you often get unexpected KakaoTalk messages from friends. "How do I apply for a housing subscription?" "What does first priority mean?" For the 2030 'Burin-i (Real Estate + Child)' who only have subscription savings accounts created by their parents when they were young, I am going to create a guide.

Since the 19th, the public announcement of the official prices for apartment complexes nationwide has begun. As explained in the previous article, the official price is the price set by the government for 13.83 million households in apartment complexes, multiplex houses, and multi-family houses nationwide, using nearby area sales prices, market prices, and appraisal values. It is used as a basis for various taxes and welfare benefits.

As the official price rises, the taxes you have to pay naturally increase. Therefore, in areas where a sharp rise in official prices is expected, such as Gangnam-gu, Seocho, Songpa, and Yeongdeungpo-gu, where the official price is expected to rise by as much as 25.57% this year, complaints are inevitable.

Homeowners who have doubts about such price surges can submit their opinions to request a reduction or increase in the official price. Until the deadline for viewing the official prices of apartment complexes next month on the 8th, you can submit your opinions online by accessing the Real Estate Official Price Notification website, or visit the civil service offices of city, county, or district offices, or any branch of the Korea Appraisal Board, or submit opinions via mail or fax.

The Ministry of Land, Infrastructure and Transport will compile the opinions received during this period, conduct re-investigation and calculation, and after the review by the Central Real Estate Price Public Announcement Committee, will finalize and announce the official prices of apartment complexes on the 29th of next month.

▲ 2020 Apartment Officially Announced Price Survey Calculation Procedure and Schedule (Provided by Ministry of Land, Infrastructure and Transport)

Last year, 28,735 opinions were received nationwide. Compared to 1,290 cases in 2018, this is an increase of 22 times. The number of opinions surged as the official price rose by 5.23% last year. This was the largest scale since 56,355 cases in 2007. Among these, only 597 cases requested an increase in the official price, while 28,138 cases, accounting for 97.9%, requested a decrease. Of all requests, 6,183 cases, or 21.8%, were reflected and recalculated. Prices rose in 108 locations, and 6,075 locations succeeded in lowering their prices.

However, even after the final official price is announced, you can raise objections once again to the confirmed price. This is because the appeal procedure called 'Objection' is available. Objections can be submitted to the Korea Appraisal Board from the day the final price is announced (April 29) until May 29. The review will be conducted from June 15 to 17, and the finally readjusted price will be announced on June 26.

According to data submitted by the Korea Appraisal Board and analyzed by Hwang Hee, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party, 16,257 objections to the official prices of apartment complexes were received last year. This is also 14.6 times higher than the 1,117 cases in 2018.

However, compared to 2018, when 168 cases (66 upward, 102 downward) were accepted, the number of accepted objections that led to adjustments decreased to 138 cases (17 upward, 121 downward) last year. Only 0.8% were accepted. The total amount of official price adjustments also decreased from 6.725 billion KRW in 2018 (3.353 billion KRW upward, 3.372 billion KRW downward) to 5.1919 billion KRW last year (628.9 million KRW upward, 4.563 billion KRW downward).