Home Buying Landscape Shifts Amid Loan and Interest Rate Pressures... Genuine Buyers Eye "Doosan We've the Zenith Bucheon"

Property Tax Exemption for Owner-Occupiers Raised from 1.2 to 1.4 Billion Won
Tax Benefits Differ Based on Actual Residence Status

Base Rate Raised to 3%
Mortgage Limits in the Seoul Metropolitan Area Now Differ Above and Below 1.5 Billion Won
Financial Planning Becomes More Complex for Genuine Homebuyers

Recently, as real estate tax system reforms, stricter lending regulations, and high interest rates all intersect, actual home buyers in the housing market are scrutinizing their financial planning just as thoroughly as they consider location when choosing a home.

Seoul apartment panorama, Source: Clipart Korea

According to the "2026 Tax Reform Plan" announced by the government on September 3, property tax exemptions for owners of one home will now vary depending on their actual residence status. The basic tax exemption for owner-occupiers will be raised from the current publicly announced price of 1.2 billion won to 1.4 billion won, while for non-resident single-home owners, the threshold is expected to remain at 1.2 billion won. The government had previously proposed lowering the exemption for non-owner-occupiers to as low as 900 million won.

With this tax reform, the government is shifting the focus from just the number of homes owned to also taking into account property value and actual residence status. As a result, whether an owner actually lives in the property has emerged as a key factor in determining their tax burden. However, since the basic property tax exemption is set based on publicly assessed value, it cannot be directly compared to new apartment sale prices.

In terms of financial regulation, 1.5 billion won is a major threshold for housing prices. In the Seoul metropolitan area and other regulated regions, home mortgage loans for the purpose of purchasing a residence are capped at 600 million won for homes priced at 1.5 billion won or less. If the price exceeds 1.5 billion won, the maximum loan limit drops to 400 million won. Thus, as housing prices rise, the amount of personal funds that homebuyers need to prepare also increases.

In particular, as new apartment prices are rising sharply and the number of high-priced properties continues to grow, securing a mortgage is becoming even more challenging. According to the Korea Land & Housing Corporation, the average sale price of new apartments in the Seoul metropolitan area surged by 22.4% in July this year compared to the same period last year.

As a result, in the new apartment market, there is a growing trend among buyers to carefully weigh not only the property price but also the amount of personal capital required for the contract and the maximum possible loan. Especially in Seoul and the broader metropolitan area, actual homebuyers considering either purchasing or upgrading to a new residence are increasingly prioritizing financial planning that takes into account both assets and borrowing capacity.

With rising interest rates, a 'funding plan' has become essential for genuine homebuyers

Adding to these factors, on August 27, the Bank of Korea raised its base rate from 2.75% to 3.00%, further increasing the financial burden of home purchases through borrowing. While lending limits determine the necessary upfront capital at the point of purchase, interest rates affect the size of principal and interest payments after the loan is taken out.

The same holds true for those seeking to trade up. Homeowners in Seoul and elsewhere who plan to sell their current property and move to a new apartment in the metropolitan area must carefully consider not only the location and features of the new home but also the timing of the sale of their existing home, the maximum loan available, and the interest burden. As policies are increasingly focused on owner-occupiers, long-term financial planning is becoming more critical for those buying homes to actually live in.

With changes in the financial landscape surrounding home purchases—including tax policy, lending restrictions, and interest rates—more buyers in the new build market are seeking developments with price competitiveness. One notable example is "Doosan We've the Zenith Bucheon," a residential complex introduced by the Doosan Construction and Ssangyong E&C consortium in Sosa-dong, Sosa-gu, Bucheon, Gyeonggi Province. In an environment where loans above 1.5 billion won are restricted due to rising interest rates, this development is attracting attention from real buyers carefully weighing both interest rates and borrowing conditions.

Rather than insisting on moving to Seoul by taking out risky loans, a growing number of buyers now prefer to enjoy a comfortable living environment at a reasonable price in major transportation hubs in the metropolitan area—particularly around transfer stations with multiple rail lines and areas where transportation infrastructure is rapidly expanding. This phenomenon is becoming a new trend in the market.

"Doosan We've the Zenith Bucheon" boasts a prime double-station location, within walking distance of Sosa Station, which connects Seoul Subway Line 1 and the Seohae Line. The large development will consist of seven buildings, rising from eight basement floors to as high as 49 floors above ground, with a total of 2,008 housing units. It is being highlighted as a landmark that will represent an emerging residential belt in the Sosa Station area.

A real estate industry official commented, "The current housing market is placing an even greater emphasis on financial planning for genuine buyers, as policies now center on owner-occupiers, lending regulations, and higher interest rates. Demand will likely continue for new housing that offers both attractive locations and features, even as buyers remain mindful of their borrowing capacity and overall financial costs."

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