"Seoul Housing Prices May Not Rise, but Property Tax Will at Least Double in 5 Years"

People Power Party's Yoo Kyung-jun Announces Major Apartment Simulation Results
Over Half of Seoul's 30-Pyeong Apartments Subject to Comprehensive Real Estate Tax in 5 Years
Dongdaemun Raemian Crecity Ranks First in Price Increase Rate

[Asia Economy Reporter Kim Hyemin] Even if housing prices remain unchanged, owners of a single apartment in major large-scale complexes in Seoul will have to pay at least double the current property tax in five years, according to an estimate. If housing prices rise to past levels, the property tax burden will increase by 3 to 6 times.

On the 29th, Representative Yoo Kyung-joon, who heads the Real Estate Official Price Verification Center of the People Power Party, released a report titled "Analysis of Changes in Property Tax for Single Apartment Owners in Major Seoul Districts." The analysis was based on actual transaction prices of apartments below the national housing size (exclusive area of 85㎡) in 147 representative complexes with large household numbers (three per electoral district).

The analysis showed that even under the conservative assumption that housing prices do not rise at all, the average property tax for the 147 complexes is expected to increase from 2.37 million KRW last year to 4.83 million KRW in 2026, more than doubling.

Among the apartments, Raemian Crecity located in Dongdaemun-gu recorded the highest increase rate, rising about 2.94 times from 2.11 million KRW to 6.19 million KRW. Dogok Rexle in Gangnam-gu followed with a 2.74-fold increase (7.84 million KRW → 21.54 million KRW), and Sanggae Boram in Nowon-gu rose 2.68 times (690,000 KRW → 1.86 million KRW). Notably, Raemian Crecity and Sanggae Boram, ranked first and third respectively, will be subject to comprehensive real estate tax as their official prices exceed 900 million KRW this year and in 2024.

Mapo Raemian Prugio, considered the flagship apartment in Mapo-gu, is estimated to see its property tax rise from 3.36 million KRW last year to 7.73 million KRW in 2026, about 2.3 times. Gyeonghuigung Xi 3rd Complex in Jongno-gu is expected to increase from 4.12 million KRW to 7.77 million KRW, about 1.9 times, during the same period. Helio City in Songpa-gu is also projected to rise from 4.54 million KRW to 11.88 million KRW, a 2.6-fold increase.

Accordingly, even if housing prices do not rise, about 53% of the 147 complexes, or 78 complexes, will be subject to the comprehensive real estate tax by 2026. In other words, about half of the 30-pyeong (approximately 99㎡) apartments in Seoul will be subject to this tax in five years.

[Image source=Yonhap News]

Representative Yoo explained that this increase in property tax is due to the government's policy of raising the official price realization rate. The government has announced plans to raise the official price realization rate to 90% by 2030. The fair market value ratio used to calculate the comprehensive real estate tax is also expected to increase from 80% in 2018 by 5 percentage points annually, reaching 100% after 2022.

If the housing price rise continues at the current pace and the effects of deductions for elderly owners and long-term ownership are not applied, the property tax burden will increase even more. In the case of Mapo Raemian Prugio, the property tax is estimated to reach 20.11 million KRW in 2026, a sixfold increase compared to last year. Dogok Rexle is expected to increase about 5.1 times to 39.96 million KRW. Raemian Crecity will increase 6.7 times to 14.17 million KRW.

Representative Yoo stated, "The comprehensive real estate tax is already an issue that ordinary Seoul citizens need to worry about. Even when applying various special cases and deduction systems prepared by the government, the property tax is estimated to double on average," and urged, "The government must immediately stop dividing the people and imposing punitive taxation."

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