Eunma and Jamsil Jugong Two-Homeowners Face 43 Million Won Property Tax... Three-Homeowners Pay Nearly 200 Million Won More

Property Taxes in Three Gangnam Districts Rise by 24.7%

Additional Tax Rate Applies to Three-Homeowners with Tax Base Over 1.2 Billion Won


Elderly Single-Homeowners Moving to Sell Properties

More Listings from Multiple-Homeowners Expected

Concerns Over Property Tax Burden Being Shifted to Tenants

Eunma Apartment, Gangnam-gu, Seoul.

This year, as the officially assessed prices of apartment complexes in Seoul's three Gangnam districts and the Han River Belt have risen sharply, homeowners with multiple properties in these areas will face a more than 40% increase in property tax burdens compared to last year. Although the government has frozen the official price realization rate for apartment complexes at 69% for this year, it is estimated that a three-homeowner in the Gangnam districts will have to pay nearly 200 million won in property taxes due to the rise in housing prices alone.

According to a property tax simulation commissioned by The Asia Business Daily to Woo Byungtak, Senior Specialist at Shinhan Bank Premier Pathfinder, based on the Ministry of Land, Infrastructure and Transport’s “2026 Officially Assessed Apartment Prices (draft),” a two-homeowner with an 84㎡ unit in Eunma Apartment in Gangnam-gu and an 82㎡ unit in Jamsil Jugong 5th Complex in Songpa-gu is expected to pay 42.84 million won in property taxes this year (with both the comprehensive real estate tax and property tax calculated at 60% of the official market value). This is a 34.58% increase from last year’s 31.83 million won, with the official prices of each property rising by 26% and 25.5%, respectively, resulting in an additional property tax burden of about 16 million won.

In particular, it is estimated that a three-homeowner with high-value properties in the Gangnam districts will pay nearly 200 million won in property taxes alone. A homeowner who owns a 112㎡ unit in Acro River Park in Seocho-gu, an 84㎡ unit in Eunma Apartment in Gangnam-gu, and an 82㎡ unit in Jamsil Jugong 5th Complex in Songpa-gu is expected to pay 192.04 million won in property taxes this year. This is approximately 56.52 million won more than last year’s 135.52 million won. For three-homeowners, a higher tax rate of at least 2.0% applies once the tax base exceeds 1.2 billion won, compared to those with two or fewer properties. The higher the amount, the steeper the applicable tax rate becomes.

According to the Ministry of Land, Infrastructure and Transport, the nationwide officially assessed price increase for apartment complexes this year was 9.16%. In Seoul, the increase reached 18.67%, the highest in five years. Among the seventeen metropolitan cities and provinces nationwide, Seoul saw the largest increase. In particular, districts adjacent to the Han River Belt recorded increases well above the average. The three Gangnam districts, as well as Han River-adjacent districts such as Seongdong, Yongsan, and Mapo, saw official prices increase by 24.7% and 23.13%, respectively, compared to last year. The increase rates in other districts were only 6.93%.

With property prices in these areas surging, it is predicted that elderly owners and multiple-homeowners—who struggle to cover holding costs after retirement with no income—may opt to put their properties on the market before the end of the capital gains tax reduction grace period on May 9. There is also widespread expectation that “housing downsizing,” where elderly single-homeowners without regular income sell their homes and move to smaller properties, will become more common.

For example, in the case of the Sinhaeundae 9th Complex in Apgujeong-dong, where this year’s property tax for an 111㎡ unit is estimated to be about 10 million won higher than last year’s 18.58 million won, elderly single-homeowners have already begun selling properties in anticipation of the increased tax burden from the beginning of the year.

The head of real estate agency A near Sinhaeundae 9th Complex in Apgujeong-dong said, “After seeing media reports suggesting the government is likely to raise property taxes, there have been quite a few cases since the beginning of the year where elderly single-homeowners gifted their properties to their children and put even their remaining home up for sale. Even if they own ultra-high-value homes, retired seniors experience a significant blow to their household finances if their property tax increases by just several million won, so I expect that more owners will eventually decide to put their homes on the market.”

There are also concerns that some multiple-homeowners who choose to hold onto their properties may attempt to pass the increased property tax burden onto tenants. In order to sell their properties before the end of the capital gains tax reduction grace period on May 9, transactions must be completed by mid-April to allow for the land transaction permit period, putting significant time pressure on multiple-homeowners looking to sell. As a result, some may try to offset their tax burden through rental income.

The head of real estate agency B near Maporaemian Prugio said, “Rather than taking on all the burden themselves, they will try to resolve the tax issue by raising either the jeonse deposit or monthly rent.”

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