Interest in 'Jeongseon Gohan Pine&U' Grows Amid Expectations for Tax Benefits on Local Housing Under 300 Million Won

With the government's announcement of next year's tax reform plan, interest is growing among buyers looking to purchase real estate in provincial cities.

According to the '2022 Tax Reform Plan' announced by the Ministry of Economy and Finance in July, the application criteria for the 'Capital Gains Tax Special Cases for Rural and Hometown Houses' will be raised from the existing KRW 200 million or less to KRW 300 million or less. The capital gains tax special case for rural and hometown houses is a system that excludes rural and hometown houses from the housing count when transferring general houses held before acquiring rural houses in provincial areas, excluding the metropolitan area and regulated areas, if the rural houses have been held for more than three years.

A plan to ease the comprehensive real estate holding tax (종부세) burden was also announced. The government revealed plans to exclude low-priced provincial houses with a publicly announced price of KRW 300 million or less from the 1 household 2 houses target when calculating the comprehensive real estate holding tax in next year's tax law revision. This is interpreted as an overall easing of the holding tax burden on low-priced provincial houses.

If the government plan is implemented, the burden of acquiring second houses in provincial areas or country houses near Seoul is expected to be significantly reduced, drawing attention to properties in provincial cities with publicly announced prices of KRW 300 million or less.

[Jeongseon Gohan Pine&U Perspective View]

Pine Construction is currently selling 'Jeongseon Gohan Pine & You' in Gohan, Jeongseon, Gangwon-do, with a reasonable sale price of around KRW 6 million per 3.3㎡.

'Jeongseon Gohan Pine & You,' located in the Gohan-eup area of Jeongseon-gun, Gangwon-do, consists of various unit sizes ranging from 59 to 127㎡. The complex has 5 buildings from basement level 1 to 19 floors above ground, totaling 299 households, with small to medium-sized apartments under 85㎡, which are preferred by actual users, accounting for 97% of the total.

The complex is adjacent to the Kangwon Land complex leisure facilities, High1 Ski Resort, golf courses, and Waterland, with a related workforce demand of about 8,000 people. Additionally, with over 5 million annual visitors to Kangwon Land, it is highly valuable not only for actual residence but also as a rental income investment product targeting these visitors.

An official from Jeongseon Gohan Pine & You Apartments stated, “Due to expectations of tax relief, inquiries from buyers purchasing provincial houses are increasing. In the case of Jeongseon, Gangwon-do, where housing prices are relatively affordable, many buyers seem to be interested in using the property as a second house or expecting rental income through investment.”