- Housing Market Stirred by Push to Abolish Comprehensive Real Estate Tax... Surge in Record Prices for 'Smart One-Home'
- Gwangju's Largest Private Special Project Apartment Meeting All Conditions for 'Smart One-Home'
The housing market is stirring as the government has expressed its intention to push for the abolition of the Comprehensive Real Estate Holding Tax (hereinafter referred to as the CREHT). With the burden of owning a home disappearing, interest is expected to pour into the so-called ‘smart single property’ that represents the local real estate market.
Recently, the government and ruling party, including the Presidential Office, have been discussing tax reforms such as the abolition of the CREHT. Following the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport, the Presidential Office has also raised its voice for reform. The aim is to integrate the CREHT with property tax to minimize the tax burden on real estate owners.
The CREHT is a tax imposed with a progressive tax rate on real estate owners who exceed certain criteria. Currently, the CREHT applies to single-home owners with publicly announced land prices exceeding 1.2 billion KRW and multi-home owners with a total value exceeding 900 million KRW. Although there are no specific details yet on the abolition of the CREHT, it is known that the likely method will be to impose the CREHT only on ultra-high-value single-home owners and multi-home owners with very high total housing values.
Accordingly, the real estate industry expects the value of the so-called ‘smart single property’ to rise. This is because the easing of tax burdens increases the possibility of revitalizing the real estate market. Generally, a ‘smart single property’ refers to a location that combines the best local position with mid-to-large size and large-scale complexes. In fact, recently, ‘smart single properties’ located in areas such as Gangnam in Seoul have consecutively recorded high actual transaction prices, continuing an upward trend.
Real estate experts predict, “If the burden of owning apartments is reduced by the abolition or easing of the CREHT, demand for ‘smart single properties’ with definite residential value is likely to surge. Especially, houses that were subject to the CREHT but are excluded will show a more distinct upward trend.”
Amid growing expectations for revitalizing the housing market due to the push for CREHT abolition, a ‘smart single property’ representing Gwangju Metropolitan City is attracting attention.
‘Jungang Park Lotte Castle Signature,’ introduced by Lotte Construction as Gwangju Metropolitan City’s largest private park special project, is the protagonist. This complex is a large brand, large-scale, mid-to-large size apartment located in Gwangju’s traditional affluent neighborhood, meeting all the conditions of a ‘smart single property.’
‘Jungang Park Lotte Castle Signature’ is located in Geumho-dong, Seo-gu, Gwangju, consisting of 39 buildings from 3 basement floors to 28 floors above ground, with exclusive areas ranging from 84 to 233㎡, totaling 2,772 households, of which 2,364 are for general sale. It is divided into three blocks: △1BL (929 households, exclusive area 114~233㎡) △2-1BL (915 households, exclusive area 121~166㎡) △2-2BL (928 households, exclusive area 84~166㎡).
‘Jungang Park Lotte Castle Signature’ boasts differentiated residential value with a large lake park. In particular, ‘Jungang Park District 1,’ which houses this complex, is the largest among the nine private park special projects promoted in Gwangju Metropolitan City, covering 2,435,516㎡, consisting of eight themed forests and eleven village forests. A variety of cultural spaces will be built centered on abundant green spaces, and the residential value is expected to increase further in the future.
High residential convenience is also anticipated. First, the complex is near Sangmu District, considered the central commercial area of Gwangju, and various commercial facilities such as Lotte Outlet and Lotte Mart are adjacent. Also, elementary, middle, and high schools such as Hwajeongnam Elementary, Hwage Elementary, and Pungam High School are within walking distance, providing excellent educational environments and abundant living infrastructure.
Transportation benefits stand out as well. Two stations of Gwangju Subway Line 2 Phase 1 (scheduled for 2026) will be within walking distance of the complex, promising a station area premium. Currently, fast vehicle movement is possible via the 2nd Ring Road and Sangmu-daero, and the distance to Seogwangju Station on the Gyeongjeon Line is also close.
World-renowned luxury finishing materials also attract attention. The kitchen is furnished with Arclinea, one of the world’s top three kitchen furniture brands, the famous German kitchen brand Nolte, and the high-end kitchen furniture brand Dada. Bathrooms feature KOHLER, a brand with 150 years of history, the famous Italian brand Atlas Concorde, and Stile. Most of these world luxury finishing materials are provided as standard options when balconies are extended.
Facilities for residents are abundant. A sky lounge will be created on the 28th floor so residents can enjoy views of Jungang Park right in front of the complex, and a luxury sauna will be installed. Various exclusive community facilities for residents are planned, including a senior club, study room, book caf?, guest rooms, fitness center, golf club, and daycare center. Additionally, a European eco-friendly playground will be built, attracting the interest of parents with young children.
Furthermore, a total of 5,385 parking spaces have been provided to accommodate about two vehicles per household, and 1,960 parking spaces are planned as expandable to ensure ample parking. Household storage in front of the entrance is provided to maximize residential space efficiency.
With these outstanding advantages, ‘Jungang Park Lotte Castle Signature’ recorded the highest number of subscription applications in Gwangju’s sales market this year. Currently, a first-come, first-served unit designation contract is underway for some units judged to be ineligible for subscription.
A sales official said, “Since the news of the CREHT abolition push, the number of calls inquiring about sales consultations has surged. It seems that the symbolism of Gwangju’s largest private park special project and the unique product value of Lotte Construction’s mid-to-large scale complex have imprinted the image of a ‘smart single property.’”
Meanwhile, the model house for ‘Jungang Park Lotte Castle Signature’ is located in the Sangmunuri-ro area, Seo-gu, Gwangju, and move-in is scheduled for August 2027.
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