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An Analysis on Appropriateness of Individual House Price based on Sales Price

  • Korea Real Estate Review
  • 2012, 22(2), pp.29-56
  • Publisher : korea real estate research institute
  • Research Area : Social Science > Law > Law of Special Parts > Law of Real Estate

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Accredited

ABSTRACT

Land and building are considered as one when the price for an individual house is put and such price assessment is made to draw out a posted price coinciding with a sales price aiming at strengthening of house holding tax and at improving the equity of taxation, and such system is implemented for providing the information of house prices and as a standard of assessment for various taxation. However, the activation of the system of reporting actual transaction price, and the service for providing real estate information have transparentized the real estate prices which have been opaque, and such circumstance is causing controversies that assessment ratio of posted prices of individual house is low, or over an appropriateness of individual house prices. The purpose of this study is to analyze the appropriateness of individual houses prices within a region or between regions through assessment ratio, and to increase such appropriateness of individual houses prices. Some individual houses in Nam-gu, Dong-gu, Suseong-gu of Daegu si for which actual transaction took place were made as subject for an analysis, which showed a vertical inequity between individual house prices and individual house prices. and in multiple standards for the assessment ratio by use district, building structure, individual house price standard, the age of the house, the houses which are higher in price than individual house price in standard price for the official land price (the officially individual land price × land area), multiple regression and the assessment ratio based on prices available for transaction, individual houses prices turned out to have problem in appropriateness both between regions and within a region. Hereupon, this researcher presented the methods to improve such appropriateness for individual houses prices. First, full provision of the information of sales prices, Second, monitoring based on assessment ratio. Third, the suggestion of posted prices of individual houses prices possible for transaction. The findings from this study is practically contributive to the appropriateness of individual houses prices and standard house price, and usable as a basic data for making policy related in the system of house price public notice.

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