Property taxes to rise sharply in Seoul’s affluent regions

Mar 15, 2019, 09:26 am

By AsiaToday reporter Cheong Ah-reum

The average government-declared value of apartment houses in Seoul rose 14 percent compared to a year ago, the highest increase since 2007.

The Ministry of Land, Infrastructure and Transport announced Thursday the increase rate of the declared price of the apartment has been decided at 5.32 percent this year.

By province, Seoul was the highest with 14.17 percent, the highest increase in 12 years and 2.7 times higher than the national average. Seoul was the only city in the country that recorded a double-digit increase.

“Realization rate of apartment houses was higher than that of single-family houses and land. Considering fairness, the rate stood at 68.1 percent, maintaining the same level as last year,” Lee Moon-ki, the director of the Housing and Urban Affairs Department of the Ministry of Land, said in a briefing.

The declared value of apartment houses rose sharply in Seoul’s affluent districts, including Gangnam, Seocho, Songpa, Gangdong, Mapo, Yongsan and Seongdong, as well as Dongjak district, where apartment prices skyrocketed due to rebuilding and redevelopment projects.

Due to rebuilding and redevelopment plans last year, Yongsan and Dongjak districts saw declared value of apartment house prices rise 17.98 percent and 17.93 percent, respectively, taking No.2 and No. 3 spots.

Since the land ministry drastically raised the declared value of expensive houses that worth more than 1.2 billion won in market price (900 million won in declared value), the declared value of apartment houses in Seoul, where relatively more expensive apartments are located, skyrocketed.

In particular, the declared value of apartment houses worth between 900 million won and 1.5 billion won soared and the rate of change was relatively high within the corresponding intervals. The rate of change for apartment houses valued between 900 million won and 1.2 billion won was set at 17.61 percent and those valued between 1.2 billion won and 1.5 billion won was set at 18.15 percent while those valued between 1.5 billion won and 3 billion won was set at 15.57 percent and those valued over 3 billion won at 13.32 percent.

“The declared value of expensive houses reflected the actualization rate last year. Since the September 13 measures, their price fell more than low-priced houses and declared value rose relatively lower,” said Lee.

The declared value of those apartment houses with large difference in declared value and market price rose as much as 20 percent.

The declared value of Yongsan Prugio Summit (189 square meters) in Yongsan District surged 28.9 percent over the previous year. The declared value of Banpo Xi (132 square meters) in Seocho District stood at 2 billion won, up 24.5 percent compared to previous year.

With declared value hike, the number of apartment houses with declared value of more than 900 million won, which are subject to comprehensive real estate tax, is 219,862 units nationwide. It accounts for 1.6 percent of all apartment houses.

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