Bucheon City's Real Estate Price Growth Rate Weakens... '1 Household 1 House Tax Rate Special Case' Lowers Property Tax Burden↓

9.54%, Lower Than Gyeonggi-do and National Average

Bucheon City Hall

[Asia Economy Reporter Park Hyesook] The real estate price increase rate in Bucheon City, Gyeonggi Province, this year was found to be lower than the average rates in Gyeonggi Province and nationwide, and the property tax burden was alleviated due to the application of the special tax rate for one household one house.

According to Bucheon City on the 15th, the real estate price increase rate compared to last year was 9.54% in Bucheon City, 13.06% in Gyeonggi Province, and 11.71% nationwide, showing a weaker increase rate than the averages of Gyeonggi Province and the nation.

Looking at the increase rates by real estate type, the prices of multi-family housing such as apartments and villas rose by 13.97% in Bucheon City, 23.96% on average in Gyeonggi Province, and 18.03% nationwide, while individual housing prices such as detached houses and multi-family houses increased by 5.83% in Bucheon City, 5.92% in Gyeonggi Province, and 6.1% nationwide.

The official land price increase rate was 8.83% in Bucheon City, 9.31% in Gyeonggi Province, and 9.95% nationwide.

In particular, the application of the one household one house special tax rate (a 0.05%p reduction in the tax rate compared to the standard rate for houses valued at 900 million KRW or less), which started this year, has reduced the property tax burden for real estate owners, significantly decreasing tax resistance complaints.

Along with this, Bucheon City also introduced the tax base standards for each type of property tax to protect taxpayers' rights.

The tax base for each type of property tax is based on the prices announced annually at the end of April by the Minister of Land, Infrastructure and Transport for multi-family housing (apartments, etc.), and by the Mayor of Bucheon City for individual houses (detached houses, etc.), with property tax (housing) levied in July and September.

Additionally, for buildings (commercial buildings, factories, etc.), property tax (buildings) is levied in July based on the standard market price approved and announced annually by the Minister of the Interior and Safety, and for land, property tax (land) is levied in September based on the individual official land price announced annually at the end of May by the Minister of Land, Infrastructure and Transport.

The tax base calculation reference date is January 1st of each year, and a period for filing objections after the announcement date is operated to protect taxpayers' rights.

The property tax (land) taxable subjects are divided by use into comprehensive aggregation taxation, separate aggregation taxation, and separate taxation, among which only comprehensive aggregation taxation and separate aggregation taxation are subject to comprehensive real estate tax (national tax).

Meanwhile, Bucheon City imposed 89.4 billion KRW in property tax for July 2021 (46.1 billion KRW for housing, 43.3 billion KRW for buildings) and collected 80.3 billion KRW, and plans to impose 110.8 billion KRW for September (39.8 billion KRW for housing, 71 billion KRW for land).

The total property tax imposed in 2021 is expected to increase by 3.7 billion KRW from the previous year to 200.2 billion KRW.