SUMMARY ․ 145
SUMMARY
A Study on the Improvement of the Real Estate Price Announcement System (I):
Focused on the Improvement of Reliability of Official Prices
Lee Yunsnag, I Taly, Lee Hyungchan, Kim Seungjong, Byun Saeil, Choi Jindo, Go Younghwa
Key words: One-person Households, Housing Policy, Inclusive Approach, Integrated Policy, Affordable Housing
The purpose of this study is to present a direction for improving the system so that the reliability of official prices of real estate are enhanced and related social complaints are minimized, focusing on the current public announcement system of land and housing prices.
To achieve this purpose, Chapter 2 looked at the appropriate price when announcing the real estate price specified in the relevant law, with a conceptual approach that considers the market price as reasonable for the appropriate price, and reviewed the history and utilization status of the real estate price announcement system. And then after, Chapter 3 also created a real estate price announcement flowchart by reviewing the outline and current status of the land price announcement system and housing price announcement system, and presented the four reliability-related issues that arise in the flow. A word-cloud survey with the official real estate price as the key word confirmed that interest in the official real estate price has been growing since 2018 and that people recognize equity, balance, fairness and transparency, which are deeply related to reliability, as important. Major issues
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related to enhancing the reliability of the real estate price announcement system were selected and reviewed accordingly, such as the gap between the official price and the market price, intervention of subjective judgment in evaluation and calculation, reversal of the official land price over the official housing price, and lack of similar standard land for comparison, etc.
The following Chapter 3 reviewed the U.S., Canada, the U.K., and Japan's cases by categorizing them into the purpose of the posting system, the operator, the type and concept of the official price, and the evaluation method and procedures in order to draw implications through comparison with the real estate price announcement system operated in Korea. All countries had similar operational objectives, while the U.S. and Canada having local government appraisers, the U.K. having a rating agency and Japan having a land agency and real estate appraisers. Although there are slight differences from state to state, the U.S. and Canada assess asset values based on the fair market value, while the UK reflecting market value assessment, and Japan carrying out land price announcements (official price) and land price surveys. The U.S. and Canada use statistical methods based on big data, with individual assets at the center, while the U.K. levying a council tax on all houses according to regional assessment ratings, and Japan setting a target zone and selecting a standard site to determine the price of the standard land. Korea also needs to improve its real estate price announcement system by evaluating and calculating official prices using statistical methods based on big data.
Next, Chapter 4 identified areas that can and cannot be estimated statistically as to whether the method of estimating the market value of real estate in standard land, standard housing, and apartment housing in a statistical manner can be utilized as a method of evaluating and calculating official prices by using the transaction data of real estate actually traded in the market, and examined the scope of areas whose market values based on actual transaction prices can and cannot be estimated.
Although the actual transaction rate among the total number of real estate is not high
SUMMARY ․ 147 when analyzing using data on the official prices of standard land, individual land, standard single-family housing, individual single-family housing and apartment housing for each year from 2017 to 2020, it is deemed worthwhile to use as one of available alternatives to improve reliability if applying it taking the characteristics of the data into account. In the case of standard land, large cities had a high rate of absence of actual transaction data, while at the local level, the rate of areas with insufficient actual transaction data was significantly low. In the case of standard housing, it is easier to use in large cities because there are relatively few areas where similar actual transaction data is scarce, while at the local level, the absence rate of actual transaction data is high, making it more useful in urban area for standard housing and local area for standard land. In the case of apartment housing, as the absence rate of actual transaction data in small complex was high, the rate of medium to large-scale complexes was low, and the rate of complexes with no actual transaction data was lower in metropolitan areas than provincial area, it is believed that the actual transaction data will be used appropriately depending on the characteristics o f the area and complex,
The last Chapter 5 proposes policy directions to address the four issues related to the reliability of the real estate price announcement system, which were derived from Chapter 2. The problem of the gap between the official price and the market price needs to be resolved in a practical way by establishing the concept of the appropriate price, and in order to minimize the intervention of subjective judgment in evaluation and calculation, it is necessary to cultivate manpower with expertise and to secure objective data. The first issue of the gap between the official price and the market price and the second issue of minimizing the intervention of subjective judgment in evaluation and calculation are more likely to be solved if utilizing the actual transaction price data reviewed in Chapter 4. As for the issue of reversal of the official land price over the official housing price, it can be solved by replacing the expression "standard housing price is the appropriate price" by another expression,
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and the issue of lack of similar standard land for comparison can be solved by reviewing and expanding the standard real estate distribution criteria.
