The burden of holding taxes (property tax and comprehensive real estate tax) is growing due to rising home prices. Centered on high-priced complexes in the three Gangnam districts (Gangnam, Seocho, and Songpa) of Seoul, holding taxes are set to increase 30% to 40% from last year, pushing the taxes due up by more than 10 million won. With home prices rising, nearly 170,000 more multifamily dwellings now exceed the 1.2 billion won official price threshold that makes them subject to the comprehensive real estate tax (for single-household, single-home owners).
The Ministry of Land, Infrastructure and Transport said on the 17th that the draft official prices for multifamily dwellings (15.85 million households) rose 9.16% on average nationwide from a year earlier. Due to gains in high-priced apartment prices, the official price growth rate in Seoul came in at 18.67%.
In particular, in the three Gangnam districts (Gangnam, Seocho, and Songpa) where apartment prices rose sharply, the official price growth rate was 24.7%, and in the Hangang Belt areas such as Yongsan, Seongdong, and Mapo districts, it rose 23.13%. Although the government kept the apartment official-price realization rate (the ratio of official price to market price) at 69% of market price, the same as last year, swings in market prices were large, driving up official prices mainly for apartments in Seoul's Gangnam area and the Hangang Belt that saw big increases last year.
◇ Holding tax for One Bailey and Apgujeong Hyundai jumps by 10 million won
In the Gangnam area and the Hangang Belt, where apartment prices rose significantly, holding tax burdens are expected to increase by 30% to 40% or more. For some high-priced apartment complexes, holding taxes tied to higher official prices could rise to the cap (150% of the previous year).
Among multifamily dwellings nationwide (15.85 million households), 487,362 exceed an official price of 1.2 billion won and are subject to the comprehensive real estate tax (for single-household, single-home owners), and 85.13% of them (414,896 households) are in Seoul. The number of dwellings subject to the tax increased by 169,364 from last year (317,988 households), and the share also rose to 3.07%.
According to materials from the Ministry of Land, Infrastructure and Transport estimating changes in official prices and holding taxes for major apartment complexes this year, the official price for a 111-square-meter unit at Shin-Hyundai 9th in Apgujeong-dong, Gangnam District, Seoul, is 4.726 billion won this year, up 36.0% from a year earlier, putting the estimated holding tax at 29.19 million won. That is 10.61 million won higher than the previous year (18.58 million won). Including surtaxes such as The Special Tax for Rural Development, the tax growth rate reaches 57.1%.
For Raemian One Bailey in Banpo-dong, Seocho District, the official price for an 84-square-meter unit is 4.569 billion won this year, up 33.0% from a year earlier, pushing the holding tax up to 28.55 million won. That is 10.26 million won higher than last year's holding tax (18.29 million won), increasing the tax burden 56.1% from a year earlier.
Apartments in the "Hangang Belt" will also see higher holding taxes. At Mapo Raemian Prugio in Ahyeon-dong, Mapo District, the official price for an 84-square-meter unit is 1.723 billion won, up 30.9% from a year earlier, with the holding tax expected to be 4.39 million won, a 52.1% increase from the previous year (2.89 million won).
◇ Nearly 60 million won more for 3-home owners
Holding tax burdens are expected to grow further for multiple-home owners who hold high-priced dwellings. Commissioned by Shinhan Premier Pathfinder, specialist Woo Byung-tak analyzed holding taxes for multiple-home owners reflecting 2026 official price changes and found that for a two-home owner holding an 84-square-meter unit at Eunma Apartments in Daechi-dong, Gangnam District, and an 82-square-meter unit at Jamsil Jugong 5th in Jamsil-dong, Songpa District, total holding taxes would be 42.84 million won, up 34.6% from the previous year (31.83 million won).
For a three-home owner holding a 112-square-meter unit at ACRO River Park in Banpo-dong, Seocho District, an 84-square-meter unit at Eunma Apartments, and an 82-square-meter unit at Jamsil Jugong 5th, the estimated holding tax this year is 192.04 million won. That is up 41.71% from last year's 135.52 million won.
Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "An increase in holding taxes is unavoidable for dwellings in the Gangnam area and along the Han River in Seoul, for high-priced dwellings, and for multiple-home owners," adding, "As the official prices that form the basis of the tax base rise, the perceived burden of holding taxes in core areas of Seoul and the capital region is expected to be heavier than last year."
◇ Possibility of additional apartment listings due to tax burden
Some analysts say more listings could hit the real estate market as tax burdens rise. In particular, with the government reviewing measures such as raising the effective holding tax rate in the tax reform plan to be announced in July, real estate tax burdens could increase going forward. As a result, there are expectations that tax-saving listings could emerge, mainly from multiple-home owners, nonresidents who hold high-priced dwellings, and those whose housing rental business periods have ended.
Nam Hyuk-woo of the Woori Bank Real Estate Research Institute said, "There is a possibility that the phenomenon of listings coming to market from elderly single-home owners centered in the Gangnam area will spread to adjacent key districts," adding, "Coupled with recent moves by single-home owners in the Hangang Belt and key districts to sell in order to trade up to the Gangnam area, the increase in listings could accelerate." Nam also said, "Even after the end of the grace period for heavier capital gains taxes, there is a possibility of a comprehensive regulatory package addressing taxes, finance, and real estate policy together, so the real estate market is expected to show a volatile pattern of starting and stopping according to uncertainty."
There are also projections that the increased holding tax burden will affect the lease market. Ham said, "If the total holding expense borne by lessors, including holding taxes, rises, they will try to pass this on in new contracts by adjusting monthly rent or deposits," adding, "Of course, rents are set by market supply and demand, but the likelihood of passing tax hikes on to tenants remains open, especially in areas where supply is tight, such as where new apartment move-ins are limited."