Busan's 'Jongbuse Apartment' Triples... Tax Burden Comparable to Seoul Metropolitan Area

Rapid Increase in Officially Announced Prices in Regional Major Cities like Busan, Ulsan, and Daegu
Official Prices Rise 60-80% Compared to Previous Year
Surge in Apartments with Official Prices Exceeding 900 Million Won

[Asia Economy Reporter Ryu Tae-min] This year, the official prices of apartment complexes nationwide have surged significantly for the first time in 14 years, making it impossible for single-homeowners in major provincial cities to avoid the comprehensive real estate tax bomb. This is because the official prices of apartments in prime locations in provincial metropolitan cities such as Busan, Ulsan, and Daegu have risen by 60-80% compared to the previous year, with many exceeding 900 million KRW.

According to the Real Estate Official Price Notification website on the 19th, the official price of the 84㎡ (exclusive area) apartment at 'Samik Beach' in Namcheon-dong, Suyeong-gu, Busan, rose 84.8% this year to 1.211 billion KRW from 655 million KRW last year. The owner of this apartment is expected to pay a total holding tax of 2.41 million KRW this year, including 180,000 KRW in comprehensive real estate tax. The official price of the 135㎡ apartment at 'The Sharp Centum Star' in Jaesong-dong, Haeundae-gu, Busan, surged 65.5% to 902 million KRW this year, making it subject to comprehensive real estate tax.

Due to this rise in official prices, the number of apartments in Busan exceeding 900 million KRW in official price, which are subject to comprehensive real estate tax for single-homeowners, increased more than threefold from 2,927 households last year to 12,510 households this year. For single-homeowners, comprehensive real estate tax is imposed if the official price exceeds 900 million KRW, while for multi-homeowners, it is imposed if the combined official price exceeds 600 million KRW.

In Ulsan, the owner of a 114㎡ apartment in Munsu-ro 2nd I-Park 1st Complex, Sinjeong-dong, Nam-gu, will pay comprehensive real estate tax for the first time this year. The official price jumped 63.3% from 562 million KRW last year to 918 million KRW this year. In Daegu, the 84㎡ apartment at Villiv Beomeo in Beomeo-dong, known as the Gangnam of Daegu, saw its official price rise by 300 million KRW to 1.016 billion KRW this year from 716 million KRW last year, making it subject to comprehensive real estate tax.

As the holding tax burden increases even for single-homeowners, complaints have poured in on internet real estate communities, claiming this is effectively a 'tax increase on ordinary citizens.' Mr. A, who owns one house in Ulsan, said, "The official price suddenly rose by more than 60% in one year, making me unexpectedly subject to holding tax. I barely managed to buy my own home, so how can ordinary people endure when taxes are taken so heavily?"

There are also concerns that the rise in official prices could push up actual transaction prices, leading to a nationwide increase in housing prices. Professor Seo Jin-hyung of Gyeongin Women's University (President of the Korean Real Estate Society) said, "As official land prices rise, more homeowners will try to list their properties at higher prices. This will cause overall housing prices to increase, creating a vicious cycle where official land prices must be raised significantly again."

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