[Photo] Real Estate Tax Changes Starting in June... What About Apartment Prices?

The top capital gains tax rate on housing will increase to 75% starting from the 1st of next month. The taxpayers subject to property tax and comprehensive real estate tax will also be finalized as of that date. However, the property tax rate has not been finalized due to the legislative amendment process, and the comprehensive real estate tax rate is still under further discussion. The photo shows a view of the Gangnam area from the Seoul Sky observatory at Lotte World Tower in Songpa-gu, Seoul. Photo by Dongju Yoon doso7@

The top capital gains tax rate on housing will be increased to 75% starting from the 1st of next month. The taxpayers subject to property tax and comprehensive real estate holding tax will also be finalized as of that date. However, the property tax rate has not been finalized due to the legislative amendment process, and the comprehensive real estate holding tax rate is still under further discussion. The photo shows a view of the Gangbuk area from the Seoul Sky observatory at Lotte World Tower in Songpa-gu, Seoul. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Yoon Dong-joo] The top rate of capital gains tax on housing will be increased to 75% starting from the 1st of next month. The subjects of property tax and comprehensive real estate tax will also be finalized as of that date. However, the property tax rate has not been finalized due to the legislative amendment process, and the comprehensive real estate tax requires further discussion, so the applicable rates have not been confirmed yet.

The increase in capital gains tax will particularly apply significantly to short-term housing transactions. Changes in capital gains tax by holding period are △ less than 1 year: 40% → 70%, △ 1 year or more but less than 2 years: 6~45% → 60%, etc.

Additionally, capital gains tax rates for multi-homeowners in regulated areas such as speculative zones, speculative overheating districts, and adjusted target areas will also be increased by 10 percentage points each. Previously, two-homeowners were subject to an additional 10 percentage points, and those with three or more homes had an additional 20 percentage points, but from the 1st of next month, the additional rates will rise to 20 percentage points for two-homeowners and 30 percentage points for those with three or more homes.

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