Development of the 'Seoul-type Housing Actual Transaction Price Index' Faster than National Statistics

Pilot Operation from March, Full Implementation Within the Year
"Korea Real Estate Board Statistics Subject to Intervention and Slow"
Reporting and Announcement Interval Reduced to 15 Days

[Asia Economy Reporter Onyu Lim] Seoul City announced on the 6th that it has developed the 'Seoul-type Housing Actual Transaction Price Index,' which shows changes in housing prices ahead of national statistics. It will be piloted from March, and after securing data expertise and credibility, it is scheduled to be fully introduced within this year.

Currently, various institutions produce and disclose weekly and monthly indices based on actual transaction prices and asking prices in the housing market. However, price-based indices have been criticized for reflecting the surveyor's subjectivity, failing to represent the actual housing market situation as market indicator information, and even causing market distortions. In the case of the actual transaction price index announced by Korea Real Estate, the index is calculated based on the contract date, resulting in a publication lag of 45 days, and up to 90 days for quarterly indices, making it difficult to grasp real-time market conditions promptly.

Accordingly, Seoul City actively supplemented the limitations of existing price-based survey indices and actual transaction price indices to secure timeliness and reflect housing characteristics and regional features, developing the Seoul-type Housing Actual Transaction Price Index. This index analyzes actual transaction prices based on the reporting date and shortens the publication lag to 15 days, enabling quick monthly monitoring of the housing market. Additionally, detailed indicators such as autonomous districts, housing types, area, and building age allow for specific market information assessment.

In the future, Seoul citizens will be able to specifically check market price changes through sub-market indicators by ▲25 autonomous districts in Seoul ▲housing types (apartments/multi-family housing) ▲housing area ▲building age.

The city also plans to form the 'Seoul-type Housing Price Index Verification Committee' composed of experts in related fields this year to secure the index's appropriateness and credibility through academic public discussions and to further enhance the data. Professor Changmoo Lee of Hanyang University, who has been advising since the development stage of the Seoul-type Housing Actual Transaction Price Index last year, said, "It is expected to play a positive role in increasing the utilization of actual transaction data, providing accurate housing information to citizens, and enhancing the reliability of housing statistics."

Furthermore, to ensure stable monthly index production and utilization, Seoul City will establish the 'Housing Market Information Analysis Office' within the Housing Policy Support Center, staffed with experts in the field, and plans to start its operation within this year to stably manage the 'Seoul-type Housing Price Index.'

Yoo Changsoo, Deputy Mayor for Administration of Seoul City, said, "One of the biggest causes of recent issues such as 'empty housing deposits' and rental fraud is the 'inaccuracy of housing statistics and information imbalance in the housing market.' Since the introduction of the lease reporting system, accurate information collection has become possible not only for housing sales but also for lease transactions. We will continue to develop accurate indices to eliminate information imbalance in the housing market."