Starting from next month, realtors will have to cut their cap on commissions for sales transactions on property worth 600 million or more and for rental transactions worth 300 million or more. 

The Ministry of Land, Infrastructure and Transport announced on Thursday that it was issuing an advance notice of the revisions to regulations regarding real estate transactions through September 16. 

As a result, in the event of the sale of a house worth 900 million won, the maximum brokerage fee would drop by 44-point-five percent from eight-point-one million won to four-point-five million won. 

In the event of transaction involving lump-sum deposit rent, also known as jeonse, that is worth 600 million won, the commission will halve from four-point-eight million to two-point-four million won. 

These are part of the amendments to the enforcement regulations on real estate brokerage fees and services that the land ministry unveiled on August 20. The measures were drafted after the fees skyrocketed in line with a surge in home prices.

Currently, real estate brokers slap a point-nine percent commission rate on sale transactions worth more than 900 million won. After the adjustment, the commission on sale transactions worth between 900 million and one-point-two billion won will drop to point-five percent, those worth between one-point-two and one-point-five billion won will see commissions fall to point-six percent and deals worth more than one-point-five billion won will see rates dip to point-seven percent.

As for rental transactions, the rate of brokerage fee for deals worth between 300 and 600 million won will slip from point-four percent to point-three percent. Transactions worth between 600 million and one-point-two billion will see rates fall from point-eight percent to point-four percent and deals worth between one-point-two billion and one-point-five billion won will see fees slide from point-eight percent to point-five percent.