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, even if next year's officially assessed housing prices rise by only half of this year's rate, the property holding tax for an 84㎡ “national standard” unit in Banpo Xi, Banpo-dong, Seocho-gu, Seoul will increase to 1.2 times the current amount. This is a result of targeted taxation that raises the comprehensive real estate tax specifically for high-end properties. Furthermore, as the price bracket subject to the higher tax rate is lowered from around 4.5 billion won to around 3.2 billion won, there are concerns that speculative demand seeking “the one prime property” may shift to homes priced below 3 billion won.

According to a tax simulation conducted by Woobeongtak, a specialist at Shinhan Premier Pass Finder, at the request of The Asia Business Daily on August 3, if next year’s officially assessed price for an 84㎡ unit in Banpo Xi rises by 13%—which is half the 26% increase seen this year—the price will climb from 3,491,000,000 won to approximately 3,942,160,000 won, an increase of about 451,160,000 won.

Acro River Park in the 3 billion won range: Property holding tax rises by 3.79 million won... Rising tax burden for luxury homes

Based on these assumptions, if a single homeowner in their only residence purchased Banpo Xi in Seocho-gu at age 51 in 2017 and reaches age 61 and 11 years of holding as of 2027, under current rules, they would only need to pay a holding tax of 13,337,387 won after the age deduction (20%) and holding duration deduction (40%) are applied. Compared to last year’s holding tax (11,332,187 won), this represents an increase of about 18%.

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

However, if this year’s tax reform is implemented, next year’s property holding tax will rise to 16,266,840 won, up 44% from the previous year. Compared to the current system, this means the homeowner will pay 1.2 times more, shouldering an additional burden of 2.92 million won because of the reform.

If the officially assessed price for an 84㎡ unit in Acro River Park, Seocho-gu, increases by half of this year’s rate, next year’s property holding tax will rise 44% from this year’s 13,360,280 won to 19,255,624 won. Under the current system, the owner would only owe 15,463,099 won, which is a 16% increase from this year. Due to the tax reform, the holding tax is now 1.2 times higher (an increase of 3.79 million won) compared to the current system.

The drastic increase in property holding taxes is due to the fair market value ratio being raised from 60% to 70%, and the increase in tax rates starting from the tax base bracket above 600 million won. From next year, regardless of the number of homes a person owns, the tax rate for the bracket exceeding 600 million won up to 9.4 billion won (for up to two properties) will be raised from the current 1.0–2.7% to 1.3–3.5%. For the 1.2 billion–2.5 billion won tax base bracket—which covers the price range for Banpo Xi and Acro River Park 84㎡ units—the comprehensive real estate tax rate rises from 1.5% to 2.0%, a 0.5 percentage point jump.

Homes in the 3 billion won range now included in tax hike brackets... Impact on non-Gangnam Han River Belt districts

Notably, this reform increases the tax rate for the bracket above 600 million won up to 1.2 billion won, thereby growing the number of households facing higher tax burdens. Under the previous system, only property tax bases above 1.2 billion won triggered the higher rate, depending on the number of properties. With the reform, homes in the 600 million–1.2 billion won tax base bracket will also see a 0.3 percentage point increase starting next year. In terms of officially assessed prices, this applies to homes priced over 2,257,000,000 won up to 3,110,000,000 won, and in terms of market prices, approximately over 3,270,000,000 won up to 4,510,000,000 won. This bracket covers about 9% of all households in Seoul (around 92,000 households).

The Asia Business Daily DB

“One prime property” trend may spread to homes priced below 3.2 billion won

By region, the tax burden is expected to rise significantly in Han River Belt districts outside Gangnam, such as Seongdong-gu, and in Yeongdeungpo-gu and Yangcheon-gu, where expensive redevelopment complexes are concentrated. According to data from Real Estate 114, as of last month, excluding the three Gangnam districts and Yongsan-gu, Yeongdeungpo-gu had the highest proportion of homes priced between approximately 3,270,000,000 won and 4,510,000,000 won, accounting for 5.7% (3,820 homes) of the district’s housing stock. This is due to expensive redevelopment complexes clustered around Yeouido. Yangcheon-gu, where all 14 units of Mokdong New Town are located, had 4.2% (3,066 homes), followed by Seongdong-gu, a Han River Belt district, at 1.5% (848 homes) and Seongdong-gu again at 1.5% (451 homes).

Experts anticipate that as the tax bracket for higher rates is lowered, psychological resistance to the reform will drive demand toward prime homes at lower price points. In other words, buyers will seek homes with a tax base below 600 million won, or a market price under 3,270,000,000 won. Hyukwoo Nam, real estate specialist at Woori Bank, said, “Psychological resistance may emerge in regions with many homes subject to the increased tax bracket,” noting, “Properties in the Han River Belt with a tax base below 600 million won may newly stand out as prime, tax-advantageous options, potentially increasing demand for switching to these properties.”

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