Seoul pushes to formalize real estate price verification centers, expand regional role

The Seoul Metropolitan Government has been discussing ways to expand the role of metropolitan governments in the assessment of official real estate prices and to strengthen the functions of planned "real estate public price verification support centers."

Seoul said it co-hosted a policy seminar with the Korea Real Estate Analysis Association at Seoul City Hall on Sept. 18, titled "Strengthening the Role and Capacity of Local Governments through Real Estate Public Price Verification Support Centers." About 190 people attended, including officials responsible for official price assessments across cities and provinces nationwide, real estate experts and members of the public.

Official real estate prices serve as the basis for a wide range of administrative systems, including property holding taxes, national health insurance premiums, basic pensions and land compensation. Because standard property and apartment prices are currently assessed and calculated primarily by the central government, calls have grown for stronger verification participation by local governments that have a better grasp of regional conditions.

Seoul has analyzed the balance of official prices since 2022 and shared its findings with the Ministry of Land, Infrastructure and Transport and autonomous districts. Since 2023, it has also joined a pilot research project with the ministry to establish a standing verification system between the central government and cities and provinces. The number of participating cities and provinces has grown from one — Seoul alone — in 2023 to 13 this year.

Seoul plans to join 12 other cities and provinces in the ministry's "2027 Real Estate Public Price Verification Support Center Institutionalization Demonstration Research" project to examine the functions and effectiveness of the verification support centers. An amendment to the Act on Public Announcement of Real Estate Prices, which includes provisions for establishing verification support centers at the city and provincial level, was introduced in December last year.

The seminar's first session covered ways to improve the reliability and balance of official prices, the role of cities and provinces, and measures to strengthen the expertise of officials handling price assessment work. Lee Chi-ju, a research fellow at the Korea Research Institute for Human Settlements, said local governments need to play a substantive role in the verification process, citing overseas cases and pilot research results.

The second session brought together academics, National Assembly members, local government officials and price assessment practitioners to discuss the verification role of metropolitan governments and the direction for operating the centers. Participants agreed on the need for an operational framework that clearly defines the verification role of metropolitan governments, strengthens the centers' expertise and supports the work of basic local governments.

The seminar identified key tasks for the verification support centers, including establishing clear legal authority and defined roles, securing specialized personnel, integrating and sharing data, linking land and housing official prices, and building a pre-verification support system. Seoul said it plans to refine the centers' functions based on analytical experience accumulated through the pilot research project and input from relevant agencies, and will also cooperate on expanding participation by cities and provinces nationwide and improving training systems for officials.

"This policy seminar served as an occasion to again underscore the need for a metropolitan-level role in the assessment of official real estate prices," said Kim Chang-gyu, head of Seoul's Urban Space Headquarters. "We will continue building a cooperative governance framework with the Ministry of Land, Infrastructure and Transport, autonomous districts and other relevant agencies to improve the accuracy and reliability of official prices."