Reducing Property Tax Burden on Mid-to-Low Priced Single Homes

Deputy Prime Minister Hong to Preside Over Real Estate Inspection Meeting on the 28th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Measures to reduce the property tax burden on low- to mid-priced single-home homeowners are expected to be announced soon. On the 28th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated at the Real Estate Market Inspection Meeting held at the Government Seoul Office, "A roadmap for the realization of official property prices based on the Real Estate Public Price Act will be announced soon," adding, "We plan to ensure that the property tax burden on low- to mid-priced single-home homeowners does not increase." Even if the official land price, which serves as the tax base, rises, the property tax rate will be lowered to reduce the property tax burden on single-homeowners of low- to mid-priced apartments.

Currently, the ruling party and government are considering expanding the scope of property tax reductions to homes valued at 900 million KRW or less. They are also considering lowering the property tax rate, which currently ranges from 0.1% to 0.4% depending on the taxable standard, by 0.05 percentage points. The ruling party and government are pushing to raise the official real estate prices to 90% of market prices by 2030. This has raised concerns that the tax burden on ordinary citizens will increase.

On this day, the government announced that starting in 2023, it will introduce a share accumulation-type sale housing system, where buyers can move in by purchasing only 20-25% of the land or building shares and acquire the remaining shares over 20-30 years.

Regarding the recent shortage of jeonse (long-term lease) housing, Deputy Prime Minister Hong said, "The government will closely monitor and analyze the jeonse market and will consider various measures to harmoniously achieve stability in both the sales and jeonse markets."

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