New System for Evaluating Real Estate

The government plans to change the system for evaluating the value of real estate. The new system will consider the profits which the seller of a property can gain as the main factor.
According to the existing system, the price that the owner paid and the market prices of neighboring buildings are the main factors. Building owners are expected to oppose this change because the new system will probably lower the value of their buildings and property.
The Ministry of Construction and Traffic (MOCT) considers this new system a far more objective method to accurately evaluate the value of real estate and will form a planning team. MOCT plans to devise a manual on the basis of the results of its research and deliver it to the Association of Evaluators. The association will also recommend details for more accurate evaluations. If needed, MOCT will consider revising the law.
Foreign investors have indicated that Korean real estate does not have a clear basis of evaluation. MOCT considers this new system a way to remove obstacles for foreign investment into the Korean real estate market.
However, some experts indicated, 'If the new system is introduced, it will worsen the effects of the ongoing assets deflation. Koreans will be forced to sell their assets to foreigners for far lower prices.'