If home prices keep rising, Seoul apartments in all but three districts could face property tax in four years

If Seoul’s home prices keep rising at their current pace, apartments across all but three of the capital’s districts could face comprehensive real estate tax within four years.

People’s Power Party lawmaker Shin Dong-wook said an analysis of data submitted by KB Kookmin Bank found that taxable apartments already appeared in 19 of Seoul’s 25 districts this year, covering 78 complexes. In 13 districts, including Gangnam, Seocho and Songpa, all five of the highest-priced complexes examined were subject to the tax.

The analysis examined the five complexes with the highest KB market values in each district, based on apartments with an exclusive area of 84 square meters. It assumed that the 2027 basic deduction would be 1.4 billion won, or 1.2 billion won for non-residents, under a revised tax reform proposal, with a 150% cap on the tax burden.

Shin estimated that the number of districts with taxable complexes would rise to 22, covering 101 complexes, if the 11% housing-price increase recorded over the year from June through May continued. The supplied report ends while describing the complexes that would newly become subject to the tax.