Seoul Officetel Standard Market Price to Rise 1.1% Next Year... Inheritance and Gift Taxes to Increase

National Tax Service Releases Draft of 2026 Standard Market Prices for Officetels and Commercial Buildings
Seoul Maintains Upward Trend Despite Nationwide Decline

The standard market prices for officetels and commercial buildings nationwide for next year have declined. However, Seoul has shown an upward trend for the second consecutive year, which is expected to increase the burden of inheritance, gift, and capital gains taxes.

The National Tax Service announced on November 14 that it will release the "2026 Standard Market Prices for Officetels and Commercial Buildings" until December 4 to collect feedback from owners and stakeholders. The standard market price is calculated as a lump sum value of land and building, based on the price per square meter for each unit. Before the final announcement, the National Tax Service will gather opinions from building owners and stakeholders, conduct a re-investigation, and finalize the prices through a review by the Evaluation Deliberation Committee.

An officetel located in Noryangjin, Dongjak-gu, Seoul. Photo by Kang Jin-hyung

According to the draft for the 2026 standard market prices, the average price for officetels nationwide has decreased by 0.63% compared to the previous year, and commercial buildings have decreased by 0.68%. For officetels, only Seoul (1.10%) and North Jeolla Province (0.82%) saw increases; all other regions experienced declines. For commercial buildings, only Seoul (0.30%) and Daejeon (0.15%) saw increases in standard market prices. Seoul has seen its standard market prices for both officetels and commercial buildings rise for two consecutive years, with increases of 1.34% and 0.85%, respectively, in 2025, and the rate of increase has grown even larger this year.

The scope of this announcement includes all officetels nationwide and certain commercial buildings with divided ownership of a specified size (3,000 square meters or 100 units) located in the Seoul metropolitan area, the five major metropolitan cities, and Sejong City. The total number of properties covered in this announcement is 2.49 million units (1.33 million officetels and 1.16 million commercial buildings), a 3.5% increase from the previous year. The Seoul metropolitan area (Seoul, Gyeonggi, and Incheon) accounts for approximately 76% of the total, with 1.89 million units (930,000 officetels and 960,000 commercial buildings).

For officetels and commercial buildings, the Commissioner of the National Tax Service calculates and announces the lump sum value of land and building, taking into account the type, scale, transaction status, and location of the building. Properties included in this announcement are those that were completed or received approval for use by the end of August this year.

Inheritance and gift taxes are levied based on the market value of inherited or gifted assets as of the date of inheritance or gift. For inheritance tax, the market value is determined by the transaction price of properties with similar size, floor, and structure within the same complex during the six months before and after the date of inheritance. For gift tax, the relevant period is six months before and three months after the date of the gift. The National Tax Service also recognizes appraised values, as well as prices from expropriation or auction, as market values. If it is difficult to determine the market value, the announced standard market price is used as the basis for taxation. For capital gains tax, according to the Income Tax Act, the acquisition and transfer prices of all real estate are taxed based on the actual transaction price; however, if the acquisition price cannot be verified, the announced standard market price is used to calculate the conversion acquisition price. The standard market price is not used for local taxes such as acquisition tax, property tax, comprehensive real estate holding tax, or for social insurance premiums such as health insurance.

The draft standard market prices announced this time can be viewed on the National Tax Service website and Hometax. If there are any objections, opinions can be submitted online, by mail, or in person until December 4. The National Tax Service also operates a dedicated information center to provide convenient consultation regarding the viewing of standard market prices and the submission of opinions. Submitted opinions will be reviewed for acceptance by the Korea Real Estate Board, and individual notifications will be sent. After reflecting the accepted opinions, the final standard market prices will be confirmed and announced on December 31 following a review by the Evaluation Deliberation Committee.

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