‘Kintex One City 2 Block’ Actual Transaction Price Rises 400 Million Won in 5 Days
Complex Recontracted After Last Year's Contract Cancellation
Concerns Raised Over Asking Price Increase
Last month, a transaction occurred in an apartment complex in Goyang-si, Gyeonggi-do, where the sale price of an apartment with the same floor area jumped by a staggering 400 million KRW in just five days, drawing attention to the background of this increase. Despite the ongoing downward trend in housing prices and no positive factors that would cause such a sharp rise, the apartment set a record for the highest price. However, according to our investigation, this was not a typical price increase transaction but rather a case where the contract was rewritten due to circumstances between the buyer and the seller. Experts pointed out that such transactions could trigger price hikes or disrupt market prices.
According to the Ministry of Land, Infrastructure and Transport's Real Transaction Price Disclosure System on the 12th, an 84㎡ unit in ‘Kintex One City 2 Block’ in Ilsandong-gu, Goyang-si, Gyeonggi-do, was registered at an actual transaction price of 1.655 billion KRW (38th floor) on the 30th of last month. The same-sized apartment in the complex was brokered at 1.25 billion KRW (47th floor) on the 25th of the same month. The price jumped by more than 400 million KRW in five days, setting a record for the largest increase among apartments that recorded new highs in the past year.
Kintex One City 2 Block, which began occupancy in August 2019, is a residential-commercial complex consisting of a total of 959 households. Even considering its prime location right in front of the GTX A station, there is no positive factor that would suddenly cause a multi-hundred-million KRW price jump. According to local real estate agents, the apartment was traded at 1.655 billion KRW in March last year, but the contract was canceled due to reasons such as changing the payment date, and the actual transaction price was re-registered afterward. The Ministry of Land’s real transaction price system shows that the apartment traded at the same price in March last year is the same unit. The contract registered last year was canceled on March 31 of this year due to contract termination reasons.
A representative from nearby A Real Estate Agency said, "I understand that the property was sold with a jeonse (long-term deposit lease)," adding, "As Goyang-si changed from a regulated area to a non-regulated area, the contract was rewritten to take advantage of the tax exemption benefits that apply even without fulfilling the actual residence requirement."
To receive the one-household-one-home tax exemption benefit for a house acquired in a regulated area, the owner must meet the requirements of two years of ownership and two years of residence. However, for houses acquired in non-regulated areas, only the two-year ownership requirement must be met. For example, if the area was regulated at the time of contract but was deregulated by the time the final payment was made, there is no two-year actual residence obligation for tax reduction. This is because the acquisition is based on the registration date.
Contract cancellations can be made by mutual agreement between the buyer and the seller. However, there are concerns that such transactions may confuse market participants in assessing the market price of the complex. Currently, the real transaction price system records only the reported amount without verifying whether the transaction actually took place. At present, there is no way to confirm whether the registered amount is the reported price or the actual transaction price.
A real estate expert said, "For a completed transaction, the final payment must be made, but the transaction reporting system does not verify the transaction status and records the reported amount as long as there is a reporting certificate," adding, "If abused, this can enable price manipulation and hinder accurate market price assessment."
Meanwhile, reflecting these concerns, the government plans to include registration status confirming the completion of the sale in the Real Transaction Price Disclosure System in the future to prevent false reporting aimed at price manipulation.
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