The Highest Priced 'The Penthouse Cheongdam' in Korea, Property Tax Alone '410 Million KRW'

by Jo Kangwook

Published 15 Mar.2021 16:35(KST)

A view of 'The Penthouse Cheongdam' in Gangnam-gu, Seoul, which was recorded as the most expensive apartment in the country on the 15th. According to the Ministry of Land, Infrastructure and Transport on the same day, The Penthouse Cheongdam (407.71㎡) was evaluated at 16.32 billion KRW for this year's official price, making it the most expensive residential housing among apartment complexes nationwide. Calculated per pyeong, the price is 132 million KRW. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kangwook Cho] With the average apartment official price increase rate approaching 20% this year, it is expected that holding taxes at the level of a 'tax bomb' will be imposed, especially on high-priced apartments in Seoul. In the case of 'The Penthouse Cheongdam,' the highest-priced property in Korea, the holding tax alone reaches 410 million KRW.

According to Shinhan Bank Real Estate Investment Advisory Center on the 15th, the total holding tax for all top 10 joint housing units by official price announced by the Ministry of Land, Infrastructure and Transport exceeded 100 million KRW for the first time this year. This assumes the apartment owner is 59 years old, has held the property for less than 5 years, and receives no tax credit for a single homeowner.

For The Penthouse Cheongdam in Cheongdam-dong, Gangnam-gu, which was completed last year and became the highest-priced joint housing in Korea this year, the estimated holding tax to be paid for the first time this year is a staggering 409.53 million KRW for a 407.71㎡ unit.

This apartment, with an official price reaching 16.32 billion KRW, is expected to be levied a property tax of 38.54 million KRW and a comprehensive real estate holding tax of 291.31 million KRW.

Following The Penthouse Cheongdam, the second most expensive joint housing is Traumhaus 5th in Seocho-dong, Seocho-gu, with a 273.64㎡ unit. Its official price rose 4.38% this year to 7.298 billion KRW, and the holding tax is expected to reach 123.99 million KRW.

In Hannam-dong, Yongsan-gu, Hannam The Hill’s 244.78㎡ unit saw its official price increase by 6.59% from 6.568 billion KRW last year to 7.01 billion KRW this year, with the holding tax burden estimated to rise 34.0% from 86.77 million KRW last year to 116.25 million KRW this year.

Other places expected to exceed 100 million KRW in holding tax this year include Hyosung Villa Cheongdam 101 (Building A) 247.03㎡ in Cheongdam-dong (109.90 million KRW), Sangji Ritzville Kyleum 273.14㎡ in Samseong-dong, Gangnam-gu (117.24 million KRW), Acro Seoul Forest 273.93㎡ in Seongsu-dong, Seongdong-gu (110.96 million KRW), and I-Park 269.41㎡ in Samseong-dong (109.03 million KRW).

Additionally, the holding tax for Acro River Park 112.96㎡ in Banpo-dong, Seocho-gu, is expected to surge 59.6% (16.26 million KRW) from 27.26 million KRW last year to 43.52 million KRW this year. Although the exact official price of this apartment has not been disclosed, applying Seocho-gu’s average increase rate (13.53%) suggests this year’s official price will be approximately 3.516 billion KRW, about 400 million KRW higher than last year’s 3.097 billion KRW.