Single-family homes valued over 2 billion KRW to see property tax increase exceeding 1 million KRW next year

Next Year’s Single-Family Home Official Price Rises 1.96%
Yongsan and Gangnam Increase Over 3%
Ministry of Land Announces '2025 Standard Land Standard Price Official Price'

Hannam-dong Redevelopment Area. Photo by Hyunmin Kim kimhyun81@

The official public price of standard detached houses next year will increase by 1.96% compared to this year, and the official land price of standard land will rise by 2.93%. As a result, the holding tax to be paid next year is expected to increase slightly compared to this year.

According to the announcement by the Ministry of Land, Infrastructure and Transport on the 19th, the official public price of standard detached houses next year will rise mainly in Seoul, which led the housing price increase this year. Seoul saw the largest increase at 2.86%. Gyeonggi (2.44%) and Incheon (1.7%) also showed high increases.

Large Increase in Official Public Prices of Detached Houses in Yongsan, Gangnam, and Seongdong

In Seoul, Yongsan-gu (3.7%), where development expectations are high, had the highest increase rate. Gangnam-gu (3.53%), Seongdong-gu (3.41%), Dongjak-gu (3.28%), and Mapo-gu (3.11%) also rose by more than 3%. Among provinces, Gwangju (1.51%) and Sejong (1.43%) had significant increases. Jeju (-0.26%) was the only one among the 17 cities and provinces nationwide where the official public price of standard detached houses decreased.

The national average official public price of standard detached houses is 169.74 million KRW. Seoul is 630.67 million KRW, and Gyeonggi is 269.08 million KRW. The area with the lowest average official public price for detached houses is Jeonnam at 44.15 million KRW.

The official land price of standard land next year will rise by 2.93% compared to this year. Like standard houses, Seoul (3.92%) will see the largest increase. Gyeonggi (2.78%), Daejeon (2.01%), Busan (1.84%), and Incheon (1.83%) will also rise. Jeju (-0.26%) will see a decrease in official prices.

The official prices next year maintained the market price reflection rate at the same level as in 2020. Standard houses are at 53.6% of market price, and standard land is at 65.5%.

Among standard lands, the most expensive land is Nature Republic (Myeongdong World branch) in Myeongdong, Jung-gu, Seoul. It has been ranked the most expensive place for 22 consecutive years. The official land price per square meter is 180.5 million KRW, up 2.9% (5.1 million KRW) from this year's official land price (175.4 million KRW).

Among detached houses, the highest price is the residence of Shinsegae Chairwoman Lee Myung-hee in Hannam-dong, Yongsan-gu, Seoul (total floor area 2,852㎡), priced at 29.72 billion KRW. It has held the top price for 10 years since being designated as a standard detached house in 2016.

Houses Over 2 Billion KRW See Holding Tax Increase Over 1 Million KRW

As official prices rise, the burden of real estate holding tax will also increase slightly next year. When the government sets the official prices of standard real estate, each local government refers to these to calculate the official prices of other detached houses and land. The official prices of apartments and villas (multi-family housing) will be announced in March next year. Based on this, holding tax (property tax and comprehensive real estate tax) is determined.

If you own a detached house in Seoul with an official price of about 1 billion KRW, property tax is expected to increase by about 100,000 KRW. For houses over 2 billion KRW, the increase is expected to exceed 1 million KRW.

According to the analysis by Woo Byung-tak, Senior Specialist at Shinhan Bank Premier Pathfinder, the holding tax for a detached house (555㎡) in Seocho-dong, Seocho-gu, Seoul, with an official price of 4.556 billion KRW next year, will increase by 1.91 million KRW (from 29.91 million KRW to 31.82 million KRW) compared to this year.

Specialist Woo said, "Holding tax rose significantly in 2021, and the comprehensive real estate tax was eased over 2022 and last year, resulting in a large reduction. Next year's holding tax is still about half of the 2021 level, so the increase is relatively small," he analyzed.