Estimated Property Tax This Year at Half the Level of 2021
Impact of the Proposed Abolition of the 'Official Price Realization Roadmap'
The owner of the apartment with the highest publicly announced price nationwide is expected to pay around 200 million won in real estate holding tax this year, which is about half the amount paid in 2021.
On the 25th, Woo Byung-tak, deputy branch manager of Shinhan Bank Apgujeong Corporate Finance Center, estimated through a mock calculation based on this year’s public price disclosure draft that the owner of The Penthouse Cheongdam (PH129) 407.71㎡ in Cheongdam-dong, Gangnam-gu, Seoul, which has the highest public price nationwide, will pay 194.41 million won in holding tax. However, this figure assumes no comprehensive real estate tax credit for single-homeowners under 60 years old and holding the property for less than 5 years, with property tax and local education tax calculated at 45 million won, and comprehensive real estate tax and special rural tax at 149.41 million won. The actual holding tax may vary depending on whether the owner holds multiple properties. It is known that The Penthouse Cheongdam is home to actor Jang Dong-gun and actress Ko So-young, singer IU, and renowned math instructor Hyun Woo-jin, famous for his entrance exam academy lectures.
The Penthouse Cheongdam, located on the top floors (19th-20th floors, duplex) with an exclusive area of 407.71㎡, has a public price of 16.4 billion won this year, which is 160 million won higher than last year. Because of this, the holding tax will increase by 10.81 million won (6.2%) compared to last year, but it is about 46% less than the 356.99 million won paid in 2021. The year 2021 was the first year the government introduced the 'Public Price Realization Roadmap,' which it later announced plans to abolish. The holding tax for this 407.71㎡ apartment rose by 31% in 2020 and 30% in 2021 consecutively, then decreased by 54% in 2022 and 3% last year.
The owner of Aeterno Cheongdam 464.11㎡ (12.86 billion won) in Cheongdam-dong, Gangnam-gu, Seoul, ranked second nationwide in public price this year, is estimated to pay 139.68 million won in holding tax. This amount also increased by 5.5% (6.87 million won) compared to last year but decreased by 43% from the estimated 245.22 million won in 2021. Aeterno Cheongdam, which began occupancy this year, is known to have been purchased by singer IU and actor Song Joong-ki.
The owner of Nine One Hannam 244.72㎡ in Hannam-dong, Yongsan-gu, Seoul, ranked third nationwide with a public price of 10.67 billion won this year, is expected to pay 104.02 million won in holding tax, a 15.3% increase from last year. The public price rose by 966 million won (6.2%) in one year, showing a larger increase in holding tax compared to other high-priced apartments. Mock calculations also indicate that the holding tax for Galleria Foret 271.83㎡ (7.769 billion won) in Seongsu-dong 1-ga, Seongdong-gu, ranked seventh, and Acro River Park 234.8㎡ (7.498 billion won) in Banpo-dong, Seocho-gu, ranked ninth, will increase by more than 20% this year.
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