As Seoul apartment sale prices rose for seven straight weeks, discussions on strengthening holding taxes and lowering transaction taxes are picking up ahead of the government's tax overhaul announcement at the end of this month. Nationwide apartment sale prices and jeonse prices also rose 0.14% and 0.13%, respectively, continuing an upward trend.
According to a Real Estate 114 artificial intelligence (AI) price survey on the 24th, nationwide apartment sale prices in the fourth week of July rose 0.14% from the previous week.
In the greater Seoul area, apartment prices rose 0.17%. Seoul rose 0.16% and Gyeonggi rose 0.22%, while Incheon fell 0.01%. Seoul's rate of increase narrowed from 0.18% the previous week but extended gains for seven consecutive weeks.
Outside the greater Seoul area, the five major metropolitan cities and other provinces each rose 0.02%. Of the 17 cities and provinces nationwide, 11 rose, one was flat, and five fell.
By region, Ulsan rose 0.14%, posting the highest increase. North Chungcheong rose 0.08% and North Jeolla rose 0.06%.
Nationwide apartment jeonse prices rose 0.13% from the previous week. The greater Seoul area, including Seoul, Gyeonggi and Incheon, rose 0.16%, while the five major metropolitan cities and other provinces rose 0.02% and 0.05%, respectively.
Among the 17 cities and provinces nationwide, jeonse prices rose in 14 regions. Two were flat, and only Gangwon fell 0.01%. Ulsan and North Jeolla each rose 0.09%, showing relatively higher increases.
Real Estate 114 analyzed that at a major debate on real estate taxation held on the 23rd, opinions converged on strengthening holding taxes and lowering transaction taxes.
However, it noted that to change the holding tax assessment standard from the number of dwellings to a value-based standard, society needs to agree on the criteria for ultra-high-priced dwellings and the method of calculating tax rates.
Key issues also include how to distinguish between owner-occupied dwellings and non-residential dwellings in the taxation process, and at what levels to adjust the officially assessed price and the fair market value ratio.
A Real Estate 114 official said, "The government's tax overhaul is scheduled to be announced at the end of this month, so time is tight," adding, "We need to see how much of the opinions presented at the debate will be reflected in actual policy."