[Asia Economy (Suwon) = Reporter Lee Young-gyu] Last year, the total volume of real estate transactions in Gyeonggi-do sharply declined to nearly half compared to the previous year (2021).
According to Gyeonggi-do’s analysis based on tax data reported for acquisition, the annual real estate transaction trends and realization rates (an indicator showing how much the official price reflects the actual transaction price) for 2022 showed that from January to December last year, the total real estate transaction volume in Gyeonggi-do was 232,729 cases, a 46.6% decrease compared to 435,426 cases in 2021. Among these, transactions of multi-family housing amounted to 84,433 cases, down 58.6% from 203,820 cases in the same period of 2021, leading the decline in real estate transactions.
Individual houses recorded 8,554 transactions, a 45.6% decrease from 15,735 cases in 2021. For land and officetels, transaction volumes were 127,604 and 12,138 cases respectively, down 35.2% and 35.6% compared to 197,031 and 18,840 cases in 2021.
The highest-priced individual house transaction last year was a detached house located in Bundang-gu, Seongnam-si, priced at 5.76 billion KRW. The highest-priced multi-family housing was also an apartment in the same area, sold for 4.8 billion KRW.
Meanwhile, analyzing the realization rates of 173,021 real estate transactions in Gyeonggi-do last year, the average annual realization rates for multi-family housing and individual houses were 60% and 53%, respectively, while land was recorded at 48%.
Due to the sharp decline in transaction volume leading to a drop in actual transaction prices and the rise in official prices last year, the realization rate for multi-family housing increased by 5 percentage points from 55% in 2021. The realization rates for individual houses and land remained at similar levels to those in 2021 (54% and 48%, respectively).
Looking at detailed specifications by transaction amount, for multi-family housing, the average realization rate in the under 300 million KRW range was 58%, indicating that official prices for low-priced housing relatively do not reflect market prices well.
For individual houses, the average realization rate in the under 300 million KRW range was 57%. For land, the realization rate was 47% in the under 300 million KRW range, while it was 55% in the 900 million KRW and above range, showing that official prices for low-priced land are set at relatively low levels.
Choi Won-sam, head of the Provincial Taxation Division, emphasized, "Official prices are important not only for taxation but also as the basis for over 60 different types of charges and fees, so maintaining fairness is the most important factor." He added, "We will continue to closely analyze trends in official price changes to enhance the reliability of official prices."
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