"Acquisition Tax 1.1%" Enthusiasm Heats Up for 43㎡ Type at 'Bukcheonan Xi Forest' Under 100 Million Won Official Price

‘Bukcheonan Xi Forest,’ an apartment complex in Cheonan, Chungnam, soon to be available for sale, is attracting the attention of corporate rental business operators. This is because the official price of the small-sized units in this complex is less than 100 million KRW, allowing corporations to purchase without being subject to the acquisition tax surtax rate and instead applying the basic tax rate of 1.1%.

According to the current Local Tax Act, when a corporation acquires a house under its name, an acquisition tax surtax rate applies, requiring payment of 12.4% acquisition tax. This regulation aims to block speculative housing demand and protect actual users, making a significant difference from the basic tax rate of 1.1%.

In particular, although the current government has proposed a relaxation plan to reduce the acquisition tax surtax rate for corporations to 6%, about half of the current rate, the related Local Tax Act amendment bill has yet to pass the National Assembly. As a result, many corporate investors believe it is more advantageous to seek houses with an official price below 100 million KRW, which are exempt from the acquisition tax surtax rate, rather than waiting indefinitely for tax law revisions.

In fact, under the current Local Tax Act, corporations located outside the metropolitan area’s overconcentration control zone are not subject to the acquisition tax surtax rate when trading houses with an official price below 100 million KRW. The 43㎡ exclusive-use type of Bukcheonan Xi Forest is priced reasonably in the mid-120 million KRW range. Its official price is less than 100 million KRW.

Additionally, the average sale price per 3.3㎡ for this type is about 6 million KRW, demonstrating strong price competitiveness. According to Real Estate R114 data, the average sale price per 3.3㎡ for small units under 59㎡ in newly sold complexes in Seobuk-gu, Cheonan last year was 12.96 million KRW. Thus, Bukcheonan Xi Forest’s sale price is more than half lower than nearby market prices and is exempt from the acquisition tax surtax, making investment possible with a small amount.

A sales representative of Bukcheonan Xi Forest stated, “While the government’s acquisition tax surtax relief plan has not passed the National Assembly, inquiries from corporate rental business operators are surging for apartments that do not require concern about the surtax. Being supplied at half the local market price and with a low acquisition tax rate, it is a ‘two birds with one stone’ investment for corporations.”

Bukcheonan Xi Forest is suitable for rental business due to its abundant demand base. It is close to numerous industrial complexes and large corporations such as Cheonheung General Industrial Complex, Chungnam Technopark, Seonggeo General Industrial Complex (planned), Cheonan 2~4 General Industrial Complexes, Samsung Display & SDI, among others. Furthermore, with the opening of the Seobuk~Seonggeo National Road Alternative Bypass, the range of industrial complexes offering proximity to work and residence from this complex is expected to expand.

Nearby universities include Kongju National University, Dankook University, Sangmyung University, Hoseo University Cheonan Campus, Baekseok University, and Namseoul University. There is high demand from 1-2 person households such as industrial complex workers, university faculty and staff, and students who mainly prefer small-sized units, making it a ‘prime investment location.’

Transportation conditions are well established with Manghyang-ro (Local Road No. 23), Gyeongbu Expressway Cheonan IC and Bukcheonan IC, and convenient access to Seoul and the metropolitan area via Jiksan Station and Dujeong Station on Seoul Subway Line 1, and KTX Cheonan-Asan Station. Especially, the Seobuk~Seonggeo National Road Alternative Bypass, scheduled to open in 2024, will connect to Beonyeong-ro, improving accessibility to Cheonan’s main urban areas and dispersing traffic volume on the frequently congested Local Road No. 23.

Bukcheonan Xi Forest also boasts excellent product quality. The complex is arranged mainly facing south, facilitating lighting and ventilation. The 43㎡ exclusive-use units, despite being small, are designed with one living room and two bedrooms to maximize space utilization. Compared to officetels designed with similar area and structure, the exclusive-use rate is also higher.

Meanwhile, Bukcheonan Xi Forest is located in Seonggeo-gil, Seonggeo-eup, Seobuk-gu, Cheonan-si, Chungnam, consisting of 10 buildings from basement 2 floors to a maximum of 29 floors above ground, with a total of 1,348 households ranging from 43 to 84㎡ exclusive area. The number of general sale units by type is expected to be △43㎡A 107 units △43㎡B 123 units △59㎡A 54 units △59㎡B 9 units △72㎡ 56 units △84㎡ 29 units, totaling 378 units. Move-in and resale are possible immediately upon contract.

Detailed information about Bukcheonan Xi Forest is available on the website, and some units in the complex are set up as sample houses for preview before signing contracts. The sample house is scheduled to open in March.