Apartment Property Tax Nears 15 Million Won on 2.7 Billion Won Apartment... Seoul Apartment Tax Burden 'Emergency'

A view of 'The Penthouse Cheongdam' in Gangnam-gu, Seoul, which was recorded as the most expensive apartment in the country on the 15th. According to the Ministry of Land, Infrastructure and Transport on the same day, The Penthouse Cheongdam (407.71㎡) was evaluated at 16.32 billion KRW for this year's official price, making it the most expensive residential housing among apartment complexes nationwide. Calculated per pyeong, the price is 132 million KRW. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kangwook Cho] This year, the official price of apartment complexes has risen by more than 19%, the largest increase in 14 years, significantly increasing the burden of holding taxes. For an apartment with a market price of 2.7 billion KRW, the holding tax is expected to approach 15 million KRW this year.

According to the Ministry of Land, Infrastructure and Transport's holding tax simulation analysis on the 15th, the official price of an apartment with a current market price of about 3.75 billion KRW is set at 3 billion KRW this year, up 8.3% from last year (2.77 billion KRW).

Accordingly, for a single homeowner under the age of 60, the total holding tax including comprehensive real estate tax is expected to be 33.6 million KRW this year. This is a 37.5% increase compared to last year's total holding tax amount (24.43 million KRW).

Specifically, property tax decreases from 14.86 million KRW last year to 10.4 million KRW this year, but the comprehensive real estate tax jumps from 24.43 million KRW to 33.6 million KRW, causing the overall tax burden to surge.

An apartment with an official price set at 2 billion KRW this year, with a market price around 2.67 billion KRW, sees its official price rise 13.6% from last year (1.76 billion KRW), and the holding tax including comprehensive real estate tax increases 44.6% from 10 million KRW last year to 14.46 million KRW this year.

Even in non-Gangnam areas, the holding tax burden is expected to increase significantly in regions such as Mayongseong (Mapo, Yongsan, Seongdong districts), where housing prices rose sharply last year.

For an apartment currently trading at about 2.14 billion KRW, the official price rises 17.2% from 1.28 billion KRW last year to 1.5 billion KRW this year, increasing the holding tax burden from 5.2 million KRW last year to 7.45 million KRW this year, a 24.5% rise.

Also, the official price of an apartment with a market price of about 1.71 billion KRW rises from 960 million KRW last year to 1.2 billion KRW this year, and the corresponding holding tax burden jumps 43.1% from 3.02 million KRW last year to 4.32 million KRW this year.

For apartments in Seoul’s non-Gangnam areas with an official price of 900 million KRW, the holding tax burden rises about 30%, from 1.82 million KRW last year to 2.37 million KRW this year, and for apartments with an official price of 700 million KRW, the holding tax increases from 1.23 million KRW last year to 1.6 million KRW this year.

On the other hand, single homeowners with an official price of 600 million KRW or less will see their holding tax burden decrease this year compared to last year by applying the newly established special property tax rate.

An apartment currently priced at about 860 million KRW has an official price of 600 million KRW this year, a sharp increase of 30.4% from 460 million KRW last year, but the holding tax decreases by 8.2% (82,000 KRW) from 1.017 million KRW last year to 934,000 KRW this year.

The holding tax for an apartment with an official price set at 300 million KRW this year also decreases by 16.3%, from 455,000 KRW last year to 381,000 KRW this year.

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