A statistical system that immediately reflects actual real estate transaction prices will be launched.
The Korea Association of Realtors announced on the 13th that it is developing a "Real Estate Price Index System" that immediately converts actual transaction prices into a database (DB) upon contract conclusion and utilizes this data to analyze various statistics and even estimate future real estate market trends.
The system, which began development last July, is scheduled to be established in May. The association plans to release the first analysis report in June and officially announce the real estate price index in December.
Currently, the Korea Real Estate Board and KB Real Estate publish housing price indexes; however, the Real Estate Board has a drawback of up to a one-month delay between contract completion and reporting. KB Real Estate has also faced criticism for using survey results from affiliated investigators as indicators, resulting in a limited sample size. Consequently, discrepancies have occurred between the indexes of the Real Estate Board and KB Real Estate.
In contrast, the price index system under development by the association immediately converts data registered on its proprietary platform, "Hanbang," into a DB to reflect real-time transaction details. Hanbang is used by 80% of licensed realtors when concluding real estate contracts. Since data is collected based on actual signed contracts, the association explained that the reliability is high and that most transactions occurring domestically can be databased.
Price changes and rental trends for non-residential real estate such as commercial properties, which have not been provided until now, can also be queried. The association plans to use the price index system to provide information on price fluctuation trends by region and type of real estate, transaction completion rates, and transaction completion periods. It will also be possible to check the age of buyers and sellers, whether they are individuals or corporations, domestic or foreign nationals, and whether ownership is joint. Announcements will be made on a weekly basis.
President Lee Jong-hyuk of the association said, "Although licensed realtors are the primary data producers in the real estate transaction market, such data has not been effectively utilized until now," adding, "The association will contribute to creating a safer and more transparent market by reprocessing data produced by realtors and providing meaningful public information."
He continued, "Big data related to non-residential real estate can be utilized by investors, companies, and institutions for business purposes," and added, "In particular, the brokerage accident data collected by the association and the listings and landlord information confirmed through the price index system are expected to help prevent jeonse fraud."
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