Seoul Assessed Value Up 18.7%, 170K More Face Property Tax
1Seoul's assessed value for apartments surged by an average of 18.7% this year.
2Rising values subject 170,000 more households nationwide to real estate taxes.
3Tax burdens will heavily increase in areas with soaring prices like Gangnam.
📖 Easy Explanation
🔍 Background
The government announces the 'assessed value' of multi-family housing like apartments nationwide every January 1st. This price is a key standard for calculating property taxes and health insurance premiums.
📌 Key Points
This year, the national average assessed value rose by 9.1%, with Seoul jumping 18.7%. Areas with surging housing prices, like the three Gangnam districts, saw increases over 24%. As the base price rises, 170,000 more households nationwide must now pay the 'comprehensive real estate tax' levied on expensive homes.
💡 Why It Matters
Homeowners may face higher property and comprehensive real estate tax burdens this year. Notably, rising assessed values can also increase health insurance premiums for retired seniors enrolled as regional subscribers, so careful checking is advised.
🔮 What's Next
The real estate market may see more listings as landlords feeling the tax burden try to sell their homes. The government plans to finalize the assessed values in late April after gathering public feedback.
📚 Glossary
공시가격 (Gongsi-gagyeok)The official real estate price set annually by the government as a standard for taxation and welfare programs.
종합부동산세(종부세) (Jonghap-budongsan-se / Jongbuse)A comprehensive real estate tax additionally levied by the state on individuals owning expensive properties above a certain value.
보유세 (Boyu-se)A collective term for the annual property tax and comprehensive real estate tax paid for owning a house or land.