Mr. A, who owns one apartment each in Mapo-gu and Gangbuk-gu, Seoul, recently put his Gangbuk-gu apartment (exclusive area 84㎡) up for a quick sale at around 900 million KRW, which is 150 million KRW cheaper than the market price. The condition for the quick sale was to complete the ownership transfer registration by the 31st of this month. The representative of A Real Estate Agency, which is handling the listing, explained, "There are absolutely no defects in the property; it is simply a listing from a multi-homeowner trying to reduce the number of properties before the comprehensive real estate tax calculation date."
While the real estate market's transaction freeze continues, the number of listings has recently been increasing rapidly, especially in the metropolitan area. According to Asil (Apartment Real Transaction Price), a real estate big data company, as of the 9th, the number of apartment sale listings in Seoul increased by 22.2% compared to the beginning of the year (January 9). During the same period, Gyeonggi Province saw a 25.5% increase, and Incheon rose by 32.9%. This is due to the Presidential Transition Committee's announcement at the end of March to temporarily exclude multi-homeowners from the one-year special capital gains tax surcharge, as well as the approaching holding tax calculation date (June 1) for comprehensive real estate tax and property tax, prompting multi-homeowners to rush to sell their properties.
Holding taxes such as comprehensive real estate tax and property tax are levied based on ownership as of June 1. If the sale is completed after June 2, the owner must pay the holding tax regardless. Especially as the holding tax burden on multi-homeowners has reached an all-time high, with the calculation date approaching, some sellers are offering not only drastic discounts but also accommodating buyers' financial situations, becoming 'friendly sellers.' Even if buyers want to purchase by the 31st, it is not easy to complete the transaction unless they are cash-rich, considering loan schedules and other factors. For example, with the Bogeumjari Loan, a policy mortgage product for low-income households, the loan application must be made before the 30th to process the final payment on the desired date. Due to these circumstances, some sellers are setting conditions such as 'registration first, payment later.' The representative of A Real Estate Agency said, "The seller is considering contracts where only the deposit and part of the interim payment are made before the end of May, with ownership transfer registration completed," adding, "In return, the seller sets a mortgage on the difference and the final payment is made within June." Holding tax is applied based on the earlier date between the final payment date and the registration receipt date. If it is difficult to get a loan for the final payment within May, the ownership is transferred first, and the final payment is made after June.
The reason sellers take the risk of quick sales is the holding tax burden. According to Woo Byung-tak, head of the Real Estate Team at Shinhan Bank WM Consulting Center, a two-homeowner holding an 84㎡ unit in Eunma Apartment and an 82㎡ unit in Jamsil Jugong 5 Complex, Songpa-gu, must pay 138.09 million KRW in holding tax this year. Considering that the holding tax was 42.7 million KRW in 2020, it has increased by nearly 100 million KRW in just two years. From the buyer's perspective, May is a month to watch closely as it offers an opportunity to purchase metropolitan area apartments cheaper than at auctions. Ko Jun-seok, CEO of J.Edu Investment Advisory, said, "Quick sales before the holding tax calculation date often come out not just tens of millions cheaper but several hundred million KRW below market price."
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