Last month, the number of gifts of collective buildings (apartments, multi-family homes, row houses, officetels) in Seoul hit a three-year high.
According to the Supreme Court Registration Information Plaza on the 7th, the number of gifts of collective buildings in Seoul in December last year was 1,051, up 46.6% from the previous month.
It was the first time since December 2022 (2,384 cases) that monthly gifts of collective buildings in Seoul exceeded 1,000.
In December 2022, demand for gifts surged as the tax base for acquisition tax on gifts was changed starting in 2023 from the former standard market value (publicly announced price) to the recognized market value (comparable sales price, appraised value, and auction and public sale prices), prompting efforts to reduce tax burdens.
Gifts of collective buildings in Seoul fell from an annual 12,142 cases in 2022 to 6,011 cases in 2023—about half year over year—as demand cooled due to higher acquisition tax on gifts and the Yoon Suk-yeol administration's tax cut policy.
They remained at 6,549 cases in 2024, then turned clearly upward again after the launch of the Lee Jae-myung administration. Gifts of collective buildings in Seoul last year totaled 8,488, the most in three years.
The sharp increase in gift demand last year was because, after the Oct. 15 measures, areas subject to heavier capital gains tax expanded to all of Seoul, and the likelihood grew that the capital gains tax surcharge would be reinstated in May this year.
For owners of two dwellings in regulated areas, the capital gains tax on a sale is surcharged by 20 percentage points (p) on top of the basic rate (6–45%), and for those with three or more dwellings, by 30 p.
Concerns that, after this year's local elections, the government would move in earnest to discuss property tax reform mentioned in the Oct. 15 measures are also analyzed to have fed into the year-end rise in gift demand.
By Seoul district, Songpa District had the most in December last year with 138 cases, up 102.9% from the previous month (68 cases). Gifts were concentrated in the three Gangnam districts, with 91 in Gangnam District and 89 in Seocho District.
On an annual basis, Gangnam District had the most at 742 cases, followed by Songpa District with 656, Yangcheon District with 618, and Seocho District with 560.