"Prepare for a Large Payment"... The Bill for Soaring Home Prices Is Coming Due

[Financial News] Although the realization rate for next year’s Officially Announced Property Price will be frozen at 69% for the fourth consecutive year, owners of apartments along the Hangang River and in areas where prices have surged this year will face a heavy property tax burden.
According to the Ministry of Land, Infrastructure and Transport (MOLIT) on the 14th, next year’s realization rate for Officially Announced Property Price will be 69% for multi-unit housing, 65.5% for land, and 53.6% for detached houses. This marks the fourth year of freezing these rates since 2023. While this is lower than the Moon Jae-in administration’s target of 80.9% by 2026, the property taxes to be billed next year are expected to be significant.
The Officially Announced Property Price is calculated by multiplying the current market price by the realization rate. As a result, for apartments whose prices have soared this year, the Officially Announced Property Price will rise, leading to increased tax burdens.
In fact, according to MOLIT’s estimates of property tax changes and amounts, the property tax for a single-home owner of an Apgujeong Shinhyundai 9th Apartment Complex unit (111m2) in Gangnam District will rise from 18.58 million won this year to 26.47 million won next year, a 42.5% increase. For a single-home owner of an Acro River View unit (78m2) in Banpo-dong, Seocho District, the tax will rise from 12.04 million won to 15.99 million won, a 33% increase. The property tax for a Mapo Raemian Prugio unit (84m2) in Mapo District is expected to increase from 2.89 million won to 3.55 million won, a 22.8% rise. In contrast, for single-home owners in non-rising areas such as Gongneung-dong in Nowon District and Banghak-dong in Dobong District, the property tax increase will be limited to 3–4%.
Meanwhile, the Officially Announced Property Price for 2026 will be determined in January for standard land and standard houses after a review in December 2025, and in April for multi-unit housing following a review in March 2026.
going@fnnews.com Choi Ga-young Reporter