15% Increase in Single-Family Homes Subject to Comprehensive Real Estate Tax: 3,473 Households

[Asia Economy Reporter Yoo In-ho] This year, the number of single-family homes subject to comprehensive real estate tax increased by 15% compared to last year.

According to the Ministry of Land, Infrastructure and Transport on the 22nd, the number of standard single-family homes with a publicly announced price exceeding 900 million KRW subject to the comprehensive real estate tax this year reached 3,473 households. This is a 15.3% increase from 3,012 households last year.

Last year, the number of single-family homes subject to the comprehensive real estate tax surged by 58%. In terms of growth rate, it has decreased to one-quarter. This year, single-family homes exceeding 900 million KRW in price in Seoul account for 2,896 households, representing 83.4% of the total.

Among the total 220,000 standard single-family homes, the proportion subject to the comprehensive real estate tax is 1.57%. When applied to the total 3.96 million single-family homes, the estimated number of single-family homes subject to the comprehensive real estate tax is about 62,000 households. This is an increase of about 8,000 households from approximately 54,000 households last year.

The industry views the reduced growth rate of single-family homes subject to the comprehensive real estate tax compared to last year as a result of criticism that the tax was raised too rapidly last year, mainly on ultra-high-priced single-family homes exceeding 1.5 billion KRW, leading to a slowdown in the adjustment pace this year.

In fact, this year, the realization rates for single-family homes priced between 900 million KRW and 1.5 billion KRW were significantly increased. The realization rate for single-family homes priced between 1.2 billion KRW and 1.5 billion KRW was raised by 3.1 percentage points from 50.6% to 53.7%, and for those priced between 900 million KRW and 1.2 billion KRW, it was increased by 2.0 percentage points from 51.4% to 53.4%.

For ultra-high-priced single-family homes exceeding 3 billion KRW, which faced controversy last year due to an excessive increase reaching 62.1%, the increase this year was limited to 0.3 percentage points.