"Who Raised House Prices?"... Record Tax Resistance Amid Soaring Official Property Prices

Collective Objection Movement Centered on Resident Cafes
Joining Forces Not Only in Gangnam Elevated Complexes but Also in Public Rental to Sale Conversion Complexes

[Image source=Yonhap News]

[Asia Economy Reporter Im On-yu] This year, as apartment prices have surged by hundreds of millions of won in some cases, an unprecedented level of tax resistance is anticipated. Homeowners facing a "tax bomb" are strongly opposing by promoting collective objections through online and offline communities.

According to the industry on the 17th, since the public housing price disclosure began the day before, movements encouraging collective objections have been expanding mainly through online communities such as resident cafes. With the public housing price increase rate reaching 19.08%, the highest in 14 years since 2007 (22.7%), the industry expects the largest scale of objections ever this year.

Notably, while past objections were centered on high-priced complexes in Gangnam, Seoul, this year such movements are being observed nationwide, including the outskirts of Seoul and Gyeonggi Province. In particular, resistance is strong in Sejong (70.68%) and Gyeonggi (23.96%), where the public housing price increase rates are the highest nationwide.

Even public rental housing complexes scheduled for conversion to sale are strongly opposing the public housing prices. A 10-year public rental early-sale complex in Dongtan New Town, Hwaseong, Gyeonggi Province, is preparing a collective objection through a Naver resident cafe. The public housing price for this complex increased by more than 32% in one year, from 336 million won to 446 million won for an 84㎡ (exclusive area) unit. A resident who has already completed the objection stated, "The surrounding environment is inferior compared to nearby complexes, and the brand value is significantly lower for an apartment priced in the 200 million won range," adding, "This complex aims to stabilize housing for the working class, but the government's actions do not align with this purpose at all."

The strong resistance is due to the increase in direct taxes such as property tax and comprehensive real estate tax caused by the rise in public housing prices, as well as the growth in various quasi-tax expenditures like health insurance premiums. This is especially a heavy burden for retirees who have no income other than owning a single home.

One complex in Pungsan-dong, Hanam, with a public housing price of 599 million won for an 84㎡ unit, barely qualifying for the special property tax rate (0.05% point reduction for properties under 600 million won), is preparing a collective objection for this reason. Last year, the public housing price for this complex was 403 million won. A resident lamented, "At this rate, it is certain that we will be hit by a tax storm next year," and added, "As a self-employed person, thinking about the rising health insurance premiums makes me furious."

However, the prevailing expectation is that the government is unlikely to accept collective objections. Last year, 37,410 objections to public housing prices were submitted, but the government only decided to adjust 2.4%, or 915 cases. Among these, 785 cases resulted in downward adjustments of the public housing price.

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