A public hearing on improving real estate official price disclosure policies is being held on the 13th at the Seoul Gangnam Branch of the Korea Real Estate Board in Seocho-gu, Seoul.  Yonhap News

The government has decided to maintain the real estate official price realization rate (market value reflection rate) for apartments next year at 69%, the same as this year.

This marks the fourth consecutive year of frozen rates since 2023.

Following a public hearing on improving real estate official price disclosure policies held at the Seoul Gangnam Branch of the Korea Real Estate Board in Seocho-gu, Seoul on the 13th, the Ministry of Land, Infrastructure and Transport convened the Central Real Estate Price Disclosure Committee at the same location to deliberate and approve the '2026 Real Estate Official Price Disclosure Proposal'.

Consequently, the official price realization rate for apartments, which was scheduled to reach 80.9% next year under the real estate official price realization plan, will be applied at 69.0% for the fourth consecutive year.

The rates for land at 65.5% and detached houses at 53.6% will also be frozen for the fourth year.

However, as market value fluctuations will be reflected in the official prices, property tax burdens are expected to significantly increase next year for major apartments in Seoul whose prices have risen sharply.

According to the Ministry of Land, Infrastructure and Transport's calculations of official prices and property taxes for major Seoul complexes next year (based on market value fluctuations as of January this year) on a one-household, one-homeowner basis, the official price for the 111㎡ unit of Shinhyeondae 9th Apartment in Apgujeong-dong, Gangnam-gu, Seoul, is projected to increase by 25.9% to 4.378 billion won. Property tax (property tax + comprehensive real estate tax) will rise by 42.5% to 26.47 million won.

For the 78㎡ unit of Acro River View in Banpo-dong, Seocho-gu, Seoul, the official price next year will be 3.284 billion won, a 20.6% increase compared to this year, and the property tax will be 15.99 million won, a 32.8% increase.

In addition, the government plans to gradually improve balance to resolve discrepancies in the official price realization rates and adjust them accordingly.

At the public hearing, analysis results were also released suggesting that for regions requiring adjustments to the official price realization rate to enhance balance, it would be appropriate to adjust the realization rate by increasing or decreasing the previous year's official price within a range of 1.5%.

The government will adjust the realization rates by increasing or decreasing the official prices of housing complexes where the realization rates are significantly low or high.

Park Cheon-gyu, head of the Housing and Real Estate Research Division at the Korea Research Institute for Human Settlements, explained at the public hearing, "There was a prevailing opinion that official price adjustments should be made gradually over several years. We confirmed that a adjustment range within 1.5% for official prices does not affect the rate of objection."

Furthermore, the annual targets presented by the previous administration through the real estate official price realization plan, extending to 2035, will be re-presented later through ongoing research and other means.

Jeong Jae-won, head of the Real Estate Appraisal Division at the Ministry of Land, Infrastructure and Transport, said, "We will consider how to set the annual market value reflection rates in the medium to long term through policy research services and other efforts."

The Moon Jae-in administration pursued the official price realization roadmap in 2020.

A plan was established for the phased increase (2020-2035) of official prices for land and houses to reach 90% of market value, but problems arose due to the rapid increase in housing prices.

Subsequently, under the Yoon Suk-yeol administration, the realization rates were restored to their original levels, but the realization targets remain in place according to the Real Estate Price Disclosure Act and other regulations.

Previously, Minister of Land, Infrastructure and Transport Kim Hyun-deuk stated at a parliamentary audit last month that there were no plans to adjust the realization rate this year and that the government would maintain the measures introduced by the Yoon Suk-yeol administration.

The official prices for next year, calculated according to the current government's proposal, will be finally decided in January for standard land and standard houses, and in April of the same year for apartments.

Official real estate prices are used as the basis for 67 administrative systems, including property tax and comprehensive real estate tax, as well as health insurance premiums and basic pensions.

Editorial Department