By Cho Jin-seo
Staff Reporter
The National Tax Service said yesterday that it will launch a tax audit of 123 people
who won a lottery to buy ``Prau’’ studio houses in Songdo Free Economic Zone in
Inchon last week, to hunt down speculative buyers and sellers.
Tax officials will also monitor the streets around the construction site and the
showroom between today and tomorrow, as backdoor sales of the property rights are
expected to take place there.
``We decided to launch meticulous tax audits as the Songdo officetels can encourage
speculative investment on the real estate market, which has been stabilized recently,
’’ the NTS said Sunday.
The ``Prau’’ auction was the most oversubscribed real estate lottery ever held in
South Korea, as 597,192 people applied for only 123 of the studio-type houses, or
officetels. Officetel refers to office space that can be used for both work and as a
residence. They are often sold with built-in furniture and household appliances.
The building is under construction by Kolon Engineering & Construction in Songdo
district in Inchon. It has been drawing big attention from realtors for its low sales
prices and loose regulations on the sales. While other officetels nearby are being
sold at near 10 million won per pyong (3.3 square meters), Prau was priced at 6.5
million won per pyong. It was sold via Internet bidding earlier this month.
The tax authority said that there is a high possibility of speculative sales in Prau
since the lottery winners have to pay only 10 percent of the total price until
Tuesday to secure their rights, and can sell them to other people before construction
is completed.