Homes Over 2 Billion Won to Face Property Tax, Non-Resident Burden to Quadruple

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based personalized news recommendation and summarization service developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

1. "Property Tax on Homes Over 2 Billion Won…Quadruples for Non-Residents"

Key Summary: Starting next year, single-home owners with market values exceeding 2 billion won will enter the comprehensive real estate tax net, and homes exceeding roughly 4 billion won will be subject to 2-5% tax rates from 2028, significantly increasing the tax burden. For a non-resident single-home owner (age 60, 10-year holding) of a home valued at 2 billion won, the comprehensive real estate tax will jump 4.1-fold from the current 276,000 won to 1.14 million won next year, and surge to 1.521 million won in 2028, 5.5 times the current level. The tax deduction will also shift from a holding-period basis to a residency-period basis, with new caps of 8 million won next year and 6 million won from 2028. The heavy capital gains tax on multi-home owners will be temporarily eased in 2027-2028 to open a channel for listings.

2. "Gap Investment on Alert…Mapo Raemian 84㎡ Property Tax: 310,000 Won for Residents vs. 2.17 Million Won for Non-Residents"

Key Summary: A 60-year-old taxpayer who has held a home valued at 5 billion won for 10 years will pay 9.79 million won in comprehensive real estate tax if resident, versus 19.7 million won if non-resident, as of 2028, creating a nearly two-fold gap. The key is the differentiation of the basic deduction, under which residents receive a 1.4 billion won deduction while non-residents are recognized for only 900 million won. After 2028, when the holding deduction is fully converted to a residency deduction, non-resident single-home owners will be left with only the age deduction (20%), sending the tax burden soaring. The government plans to recognize non-residency periods as residency periods for up to three years, limited to unavoidable reasons such as schooling, employment, illness, overseas stays, and caring for parents.

3. "Special Long-Term Holding Deduction Cap Cut to 1 Billion Won…Capital Gains Tax on 4 Billion Won Gain to Quadruple in Three Years"

Key Summary: The maximum deduction rate of 80% is maintained, but the deduction amount is capped at 2 billion won in 2028 and 1 billion won from 2029. From the moment the eligible capital gain exceeds 1.25 billion won as of 2029, the cap begins to take effect, and the higher the price of the home, the larger the increase in tax burden. On the other hand, for single-home owners with homes valued at 3 billion won or less who have resided there for 10 years or more, the basic capital gains deduction expands 10-fold from 2.5 million won in 2027 to 25 million won, with cases emerging where the tax is reduced or eliminated. In the case of DMC Sangam Central 1, acquired for 650 million won and sold for 1.3 billion won after 10 years of holding and residence, the capital gains tax of about 470,000 won under the current system was calculated at 0 won after the reform.

4. "'Just Enough to Prevent a Surge'…Mid-to-Low-Priced Homes and Rents Actually Face Upward Pressure"

Key Summary: Five real estate experts agreed that this tax reform will curb explosive home price increases but will find it difficult to break the upward trend itself. Homes valued at 2 billion won or less carry a relatively small comprehensive real estate tax burden, raising the possibility of upward price leveling, and concerns were raised that as more homeowners move in themselves to receive tax benefits, jeonse (a Korean lease system requiring a large lump-sum deposit instead of monthly rent) listings will decrease and tenants will inevitably be pushed out. The shift to monthly rent is also expected to accelerate as the holding tax burden is passed on to monthly rents. Analyses predominated that rising rents will ultimately re-stimulate purchase demand.

5. "40,000-Household Residential Town to Be Built…'Most Listings with 100 Million Won Premium Sold Out'"

Key Summary: A total of 27 redevelopment projects are being pursued simultaneously across Jungnang-gu, including 8 redevelopment and reconstruction projects, 5 urban public housing complex projects, and 14 Moa Town projects, with about 40,000 households expected to be supplied upon completion. The second Moa Town pilot project site in Myeonmok-dong, with a maximum of 37 stories and 1,919 households, has completed its project implementation plan approval notice, with relocation and construction expected in early next year. The actual transaction price per land share (3.3㎡) for small multi-family homes (33㎡ or less in exclusive area) has risen to the 70-80 million won range in fast-moving zones, and listings in the 400-500 million won range carrying a 100 million won premium over the apartment price have mostly sold out. However, as most projects are in early stages, there are large gaps in the pace of progress and profitability by zone, and block cancellation risk is also cited as a variable.

6. "GTX-B and Myeonmok Line Plus Complex Development…Will Jungnang-gu Shed Its 'Bedroom Town' Image?"

Key Summary: When the GTX-B opens in 2030 around Sangbong and Mangu stations in Jungnang-gu, travel time to major business districts such as central Seoul and Yeouido is expected to be shortened to around 15 minutes. Sangbong District 9's 'Sangbong The Sharp First World' (999 apartment units and 308 officetel units) is targeted for completion in 2029, and the Myeonmok Administrative Complex Town (712 apartment units) has begun demolition, targeting construction start in 2027 and completion in 2030. The Myeonmok Line (about 9.5㎞) connecting Cheongnyangni Station and Sinnae Station has also passed the preliminary feasibility study and entered the basic planning stage. The median sale price of apartments in Jungnang-gu is 660 million won, less than half that of Gwangjin-gu (1.479 billion won), highlighting price appeal relative to the development windfalls.