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SEOUL MAYOR ON HOUSE PRICE POLICIES
입력 2021.04.14 (15:16) 수정 2021.04.14 (16:45) News Today
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[Anchor Lead]

The issue of officially appraised house prices caused a heated debate at a cabinet meeting on Tuesday. Seoul Mayor Oh Se-hoon wants local governments to be involved in decisions on official appraisals of apartments. The central government rebutted by asking to trust its policies.

[Pkg]

An apartment complex in Seocho-gu District, Seoul. The officially appraised price of a unit that was sold for 1.3 billion won last October has been estimated at over 1.5 billion won this year. The Seocho-gu District Ward raised the issue early this month, but the land ministry brushed it aside. It said the transaction in question was the only apartment sale transaction in the given complex at the time. When there are few transactions, official appraisals are calculated based on transactions at nearby apartments. Officially appraised prices of apartments in Seoul were found to have risen nearly 20 percent this year. In areas with many apartment units costing more than 900 million won, the tax burden is quite heavy.

[Soundbite] (Realtor) : "They have retired and have no income. They complain to us."

Seoul Mayor Oh Se-hoon, who had vowed to investigate official appraisals, told the central government that a sharp increase in officially appraised house prices is a burden to the public, asking that local governments be involved in their appraisal process.

[Soundbite] Oh Se-hoon(Seoul Mayor (Apr. 13)) : "The problem is not whether official appraisals are raised or not, but rather how quickly they spike. We will continue discussing this issue with the land ministry."

Finance Minister Hong Nam-ki responded by saying the Real Estate Board appraisesreal estate prices by surveying more than 14 million apartment units and that the government also strives for an accurate calculation. Experts are also split on whether or not local governments should be involved in the matter.

[Soundbite] Lee Chang-moo(Prof., Hanyang Univ.) : "The requirements of provincial governments are not always reflected in decisions."

[Soundbite] Yoo Sun-jong(Prof., Konkuk Univ.) : "I don't think local governments can negotiate officially appraised house prices. They must be decided by the central government and the relevant ministries."

President Moon Jae-in noted that all issues, be it virus prevention or real estate, can be solved nationwide only after they are solved in the capital region. He therefore called for cooperation between the Seoul Metropolitan Government and the relevant ministries.
  • SEOUL MAYOR ON HOUSE PRICE POLICIES
    • 입력 2021-04-14 15:16:50
    • 수정2021-04-14 16:45:29
    News Today
[Anchor Lead]

The issue of officially appraised house prices caused a heated debate at a cabinet meeting on Tuesday. Seoul Mayor Oh Se-hoon wants local governments to be involved in decisions on official appraisals of apartments. The central government rebutted by asking to trust its policies.

[Pkg]

An apartment complex in Seocho-gu District, Seoul. The officially appraised price of a unit that was sold for 1.3 billion won last October has been estimated at over 1.5 billion won this year. The Seocho-gu District Ward raised the issue early this month, but the land ministry brushed it aside. It said the transaction in question was the only apartment sale transaction in the given complex at the time. When there are few transactions, official appraisals are calculated based on transactions at nearby apartments. Officially appraised prices of apartments in Seoul were found to have risen nearly 20 percent this year. In areas with many apartment units costing more than 900 million won, the tax burden is quite heavy.

[Soundbite] (Realtor) : "They have retired and have no income. They complain to us."

Seoul Mayor Oh Se-hoon, who had vowed to investigate official appraisals, told the central government that a sharp increase in officially appraised house prices is a burden to the public, asking that local governments be involved in their appraisal process.

[Soundbite] Oh Se-hoon(Seoul Mayor (Apr. 13)) : "The problem is not whether official appraisals are raised or not, but rather how quickly they spike. We will continue discussing this issue with the land ministry."

Finance Minister Hong Nam-ki responded by saying the Real Estate Board appraisesreal estate prices by surveying more than 14 million apartment units and that the government also strives for an accurate calculation. Experts are also split on whether or not local governments should be involved in the matter.

[Soundbite] Lee Chang-moo(Prof., Hanyang Univ.) : "The requirements of provincial governments are not always reflected in decisions."

[Soundbite] Yoo Sun-jong(Prof., Konkuk Univ.) : "I don't think local governments can negotiate officially appraised house prices. They must be decided by the central government and the relevant ministries."

President Moon Jae-in noted that all issues, be it virus prevention or real estate, can be solved nationwide only after they are solved in the capital region. He therefore called for cooperation between the Seoul Metropolitan Government and the relevant ministries.

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