[비즈한국] While tax authorities have announced they will conduct a full-scale verification of ultra-high-priced housing transactions exceeding 3 billion won, BizHankook's investigation confirmed that the number of apartments sold for over 3 billion won by July of this year has approximately doubled compared to the same period last year. Notably, 8 out of 10 transactions for ultra-high-end apartments priced at 10 billion won or more were record-breaking prices. Previously, the government announced plans to strengthen oversight of the real estate market while unveiling its housing supply measures on the 7th.
According to an analysis of Ministry of Land, Infrastructure and Transport actual transaction data by BizHankook on the 11th, 2,736 apartments were sold for over 3 billion won by July of this year, roughly double the 1,339 units recorded in the same period last year. This is 297 units (12%) more than the total sales volume of apartments over 3 billion won for the entire previous year. This year's transaction volume includes: 1,660 units between 3 billion and under 4 billion won; 624 units in the 4 billion won range; 202 units in the 5 billion won range; 98 units in the 6 billion won range; 62 units in the 7 billion won range; 36 units in the 8 billion won range; 27 units in the 9 billion won range; 25 units between 10 billion and under 20 billion won; and 2 units at 20 billion won or more.
Transactions for apartments over 3 billion won were concentrated in regulated areas such as the "Gangnam 3" districts and Yongsan-gu. The locations of apartments sold for over 3 billion won this year include Seoul: Gangnam-gu (1,022), Seocho-gu (806), Songpa-gu (366), Yongsan-gu (164), Yeongdeungpo-gu (Yeouido-dong, 140), Seongdong-gu (81), Yangcheon-gu (53), Gwangjin-gu (19), Dongjak-gu (11), Mapo-gu (6), Jung-gu (2), and Jongno-gu (2). In Gyeonggi Province: Seongnam-si (29), Gwacheon-si (7), Suwon-si (4), and Yongin-si (1). In Busan: Haeundae-gu (15) and Nam-gu (7). In Daegu: Suseong-gu (1).
8 out of 10 apartment transactions priced at 10 billion won or more were record-high prices. Of the 27 apartments sold for over 10 billion won this year, 21 units (78%) set new price records for the same floor plan within those complexes. In January, a 235㎡ (exclusive area) unit in Hannam-dong, Yongsan-gu, Seoul, was traded for 10.9 billion won, 900 million won higher than the previous record in October of last year. In July, a 171㎡ unit at Shin-Hyundai Phase 11 in Apgujeong-dong, Gangnam-gu, Seoul—where reconstruction is underway in Apgujeong District 2—sold for 10 billion won, surpassing its previous record (9.02 billion won in April of this year).
Some of the individuals breaking these price records were foreigners. Previously, an American national identified as Mr. A purchased a 198㎡ unit at Apgujeong Hyundai Phase 1 & 2 in Gangnam-gu, Seoul, for 10.5 billion won. This was 1 billion won higher than the complex's previous record (for a 196㎡ unit in February) and 1.1 billion won higher than the record for the same size (also in February). Following Mr. A's transaction, the maximum sale prices in the complex jumped to 12 billion won (197㎡) and 12.7 billion won (197㎡) in June, respectively. The 198㎡ unit also set a new record of 11.78 billion won that same month (Related article: [Exclusive] The buyer of the 10.5 billion won 'record-high' Apgujeong Hyundai is American... Will land transaction permits be effective?).
Meanwhile, oversight of the real estate market is expected to be significantly tightened. In the housing supply measures announced on September 7, the government stated it would establish an organization dedicated to investigating and probing crimes in the real estate market. To preemptively block market-disturbing activities and illegal acts, the Ministry of Land, Infrastructure and Transport plans to focus on planned investigations, and the National Tax Service (NTS) plans to intensify tax audits. Regulations on submitting financing plans will also be strengthened to include loan types and financial institutions, and the reporting system will be revised to require the submission of contract documents and proof of earnest money payment when reporting real estate sales contracts.
Ultra-high-priced homes over 3 billion won have immediately been placed under tax audit scrutiny. NTS Commissioner Im Kwang-hyun stated at the Real Estate Related Ministers' Meeting on the 7th, "We will conduct full-scale verification of not only ultra-high-priced transactions over 3 billion won in areas causing market instability, such as the 'Gangnam 4' districts and 'Ma-Yong-Seong' (Mapo, Yongsan, Seongdong) where records are being broken, but also all other transactions where the source of funds is suspicious." He added, "For foreign transactions, which have been criticized for reverse discrimination against domestic citizens and market disruption, we will continue to conduct thorough verifications, including second and third follow-up audits if necessary, following the first tax audit this year."