[Apartment Official Price Announcement] Expert: "It's Time to Decide Whether to Hold or Sell"

[Asia Economy Reporter Inho Yoo] Experts predict that the burden of property taxes on owners of high-priced homes and multiple homeowners will significantly increase as the publicly announced property prices rise sharply.

Concerns are growing that transaction volumes will also shrink considerably due to the economic downturn caused by the COVID-19 pandemic and the increasing tax burden.

Ham Young-jin, Head of the Zigbang Big Data Lab, said, “Elderly retirees with a large proportion of real estate assets are expected to gradually feel an increased tax burden, including quasi-taxes,” adding, “There may also be some objections from owners regarding the publicly announced prices of apartment complexes.”

Yang Ji-young, Director of R&C Research Institute, emphasized, “The property tax burden will definitely increase mainly for high-priced apartments in areas like Gangnam,” and added, “For those over 60 years old who own two or more houses, the comprehensive real estate tax reduction benefits disappear, so retirees may find it difficult to bear the increasing tax burden.”

Some analysts diagnose that multiple homeowners face a timing decision on whether to sell or gift their properties during this period.

Park Won-gap, Senior Real Estate Specialist at KB Kookmin Bank, predicted, “Multiple homeowners will have deeper concerns about holding or disposing of properties,” and said, “Elderly or retired individuals are expected to reduce the number of houses they own.” He added, “If selling is difficult, there is also the possibility of gifting properties to their children.”

Director Yang said, “Although there is a temporary exemption from the increased capital gains tax for multiple homeowners who sell, the burden on the price difference makes selling difficult,” and added, “Many are expected to choose gifting.”

There is also analysis that a sharp decline in housing prices in both the short and long term is inevitable if the global economic crisis materializes. Specialist Park said, “Amid the global economic recession, there are many negative factors such as increased property taxes in the domestic real estate market, strengthened loan regulations, and investigations into sources of funds,” and added, “It is highly likely that real estate prices will remain weak for some time.”

This content was produced with the assistance of AI translation services.