Banpo Xi: Even If Next Year's Official Price Rises Only Half, Holding Tax Hits 16 Million Won... 1.2 Times Higher Than Current [2026 Tax Reform]

Banpo Xi Ownership Tax Rises from 13.33 Million Won to 16.27 Million Won
Tax Burden Increases by 1.2 Times Even If Official Price Growth Slows by Half
Tax Rate Raised Starting from 600 Million Won in Taxable Base; 90,000 Households in Seoul Affe

Due to the government's tax reform, if next year's officially assessed value increases by only half of this year's growth rate, the property tax on the standard apartment (exclusive area 84㎡) at Banpo Xi in Seocho-gu, Seoul, will increase by 1.2 times compared to the current level. This is due to a targeted tax policy that raises the comprehensive real estate tax rate, especially for high-priced homes. Furthermore, as the taxable bracket subject to higher tax rates will be lowered from properties valued at around 4.5 billion won to 3.2 billion won, there are concerns that speculative investment demand for “one smart home” may shift toward properties priced under 3 billion won.

According to a tax simulation conducted for The Asia Business Daily by Byungtak Woo, a senior advisor at Shinhan Premier Pass Finder, if the officially assessed value of the 84㎡ unit at Banpo Xi rises 13% next year—half of this year's 26% increase—the assessed value would rise from 3.491 billion won to approximately 3.942 billion won, an increase of about 451.16 million won.

Akro River Park in the 3 billion won range, property tax rises by 3.79 million won… Increasing burden from high-end residence tax rate hikes

Assuming the homeowner bought the Banpo Xi apartment in Seocho-gu in 2017 at age 51 and, as of 2027, will be 61 years old with an 11-year holding period and owns just one home—with the current system, an age deduction of 20% and a holding deduction of 40% would apply, resulting in a property tax bill of 13.337387 million won. Compared to the previous year's property tax of 11.332187 million won, this represents an 18% increase.

Banpo Xi, Banpo-dong, Seocho-gu. The Asia Business Daily DB

However, applying the tax reform announced this year, next year's property tax would amount to 16.26684 million won, a 44% increase from the previous year. Compared to the forecast under the current system for next year, the owner would shoulder an additional burden of roughly 2.92 million won due to the tax reform—a 1.2-fold increase.

For an 84㎡ unit at Acro River Park in Seocho-gu, if the officially assessed value also rises by only half of this year’s growth rate, next year's property tax will amount to 19.255624 million won—a 44% jump from 13.36028 million won this year. Under the current system, it would increase by only 16% to 15.463099 million won. With the tax reform, the property tax rises by about 1.2 times (an increase of 3.79 million won) compared to the current rate.

The substantial rise in property tax is attributed to the hike in the official market value ratio from 60% to 70% and the increase of the tax rate beginning at the taxable base of 600 million won. Starting next year, regardless of the number of homes owned, tax rates for amounts above 600 million won up to over 9.4 billion won will rise for those owning up to two homes—from the current 1.0–2.7% to 1.3–3.5%. The comprehensive real estate tax rate for the taxable base bracket that includes the 84㎡ units at Banpo Xi and Acro River Park (1.2–2.5 billion won) will be 2.0%, up by 0.5 percentage points.

Homes in the 3 billion won range now included in higher-tax brackets… Non-Gangnam Han River Belt districts hit hard

Notably, this reform increases the tax rate on the 600 million won to 1.2 billion won taxable base bracket, expanding the number of households facing a higher tax burden. Under the previous system, higher tax rates were applied only for the bracket exceeding 1.2 billion won, depending on the number of properties owned. However, starting next year, homes assessed at over 600 million won and up to 1.2 billion won will also see their tax rate increase by 0.3 percentage points. In terms of officially assessed value, this covers properties above 2.257 billion won and up to 3.11 billion won, and on a market value basis, those above about 3.27 billion won and up to 4.51 billion won. This impacts roughly 9% of all households in Seoul (about 92,000 households).

The Asia Business Daily DB

Growing concern that “one smart home” demand will spread to homes valued under 3.2 billion won

Regionally, tax burdens are expected to increase in non-Gangnam Han River Belt areas such as Seongdong-gu and in Yeongdeungpo-gu and Yangcheon-gu, where expensive redevelopment complexes are concentrated. According to Real Estate 114, as of last month, excluding the three Gangnam districts and Yongsan-gu, Yeongdeungpo-gu had the highest proportion of homes valued between 3.27 billion won and 4.51 billion won, accounting for 5.7% (3,820 households) of the district’s total. This is largely due to luxury redevelopment complexes clustered around Yeouido. Yangcheon-gu, which hosts 14 Mokdong New Town complexes, followed with 4.2% (3,066 households), as did Seongdong-gu (1.5%, 848 households) and Gwangjin-gu (1.5%, 451 households), both Han River Belt districts.

Experts predict that, as the taxable base for higher tax rates is lowered, there will be psychological resistance to the tax reform and demand will increasingly shift toward homes in lower price ranges for “one smart home” purchases. This means buyers will consider acquiring properties below the official taxable base of 600 million won, or below 3.27 billion won in market terms. Hyukwoo Nam, real estate advisor at Woori Bank, explained, "In areas with a high concentration of homes within the increased tax rate brackets, there may be a psychological resistance level. Properties below the 600 million won taxable base in the Han River Belt may newly emerge as tax-efficient 'one smart home' options, attracting more interest from those looking to move."

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