Gyeonggi Province Enhances Reliability of Individual Housing Prices... 2,629 Houses Adjusted Last Year

Gyeonggi Province completed the adjustment of officially assessed housing prices for 2,629 houses last year to enhance the appropriateness and reliability of real estate official prices, which serve as the basis for calculating taxes and charges.

The houses subject to adjustment included: ▲ 1,652 houses with "characteristics mismatch," where the results of land characteristics surveys differed; ▲ 382 houses with "price inversion," where the total price including the house was assessed lower than the land price alone; and ▲ 595 houses with "price imbalance," where the price gap compared to neighboring houses was significant.

Under the current system, individual official land prices are determined by the land department, while individual housing prices are assessed by the tax department. As a result, the same land may be surveyed differently for characteristics such as road frontage, elevation, and land shape. Cases where these survey results differ for the same land, resulting in price discrepancies, are referred to as "characteristics mismatch."

When a characteristics mismatch occurs, there can be cases where the sum of the land and housing prices is officially assessed as lower than the land price alone; this is called the "price inversion phenomenon." Additionally, in cases where land characteristics are similar within the same area but housing price gaps are large due to differences in the selection of comparison standard houses, these are classified as "price imbalance" cases.

Gyeonggi Province completed the individual housing price adjustments for 2,629 houses last year. Provided by Gyeonggi Province

To systematically address these issues, Gyeonggi Province has been the only metropolitan local government nationwide to directly hire professional appraisers since June 2021 to carry out housing price adjustments. Last year, the province reviewed a total of 2,629 houses, formulated adjustment opinions, and notified city and county governments of the results.

When Gyeonggi Province notifies cities and counties of adjustments, the local governments review the cases through their Real Estate Price Disclosure Committees and then correct and announce the characteristics of individual housing prices or land prices as needed.

This year, Gyeonggi Province plans to continue adjustments for houses with characteristics mismatch, price inversion, and price imbalance, while also selecting cases where two or more parcels of land are used as accessory land for a single house to further verify whether the officially assessed prices have been appropriately determined.

Ryu Youngyong, Director of Tax Administration at Gyeonggi Province, stated, "Individual housing prices are an important standard for tax assessment," adding, "We will ensure fair taxation through continuous and systematic adjustments."