"Property tax burden is heavy"...Jeonse asking prices jumped by as much as 50 million won in a day

[Financial News] As the July 31 deadline for property tax payments approaches, some landlords are moving to adjust jeonse asking prices in light of future tax burdens. With a shortage of jeonse listings as well, cases in which deals are being completed even after asking prices are raised are becoming more common.
According to the industry on the 29th, jeonse asking prices have recently been rising sharply in a short period, especially in Seoul.
For a 59-square-meter unit at Gwanak Prugio in Bongcheon-dong, Gwanak District, a jeonse deal was signed for 600 million won on the 11th. Right after that, the asking price jumped to 650 million won. The jeonse price for that unit had been in the 500 million won range.
Similar moves are being seen nearby. For a 59-square-meter unit at Hillstate Newfore in Sillim-dong, a record-high contract was signed at 760 million won on July 24. The asking price had been in the upper 600 million won to low 700 million won range, but a listing at 800 million won has recently appeared.
The market also sees rising property tax burdens as one factor behind the recent jump in jeonse asking prices. A real estate agency official in Gwanak District said, "There are very few jeonse listings, and with record-high transactions already taking place, the asking prices appear to have surged in a short time as the timing coincided with the issuance of property tax notices."
According to the Ministry of Land, Infrastructure and Transport's draft of the 2026 official apartment assessed prices announced in March, Seoul's official apartment prices rose 18.67% from a year earlier this year. The explanation is that some landlords are reflecting the heavier property tax burden in jeonse deposits.
In particular, as the shortage of jeonse listings continues, landlords' higher asking prices are becoming entrenched as market prices. Even in large apartment complexes, jeonse listings are hard to find. At Sillim Prugio 1st Complex in Gwanak District, which has 1,456 households, there were no jeonse listings at all. Donam Samsung in Seongbuk District, with 1,278 households, and Raemian Crisiel, with 1,168 households, also had no jeonse listings. Bukhan Mountain I-Park in Dobong District, with 2,061 households, also had zero jeonse listings.
However, experts said it is difficult to interpret the recent increase in jeonse asking prices simply as a response to this year's property tax burden. They argued that landlords may instead be pricing in advance the possibility of a heavier holding tax burden as expectations grow ahead of a tax reform proposal.
Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, said, "Even in Seoul, the outskirts did not see a large rise in home prices last year, so property tax burdens have not increased sharply in those areas this year." He added, "However, since this year's home price gains will be reflected in next year's official assessed prices, there may be moves to adjust jeonse and monthly rent prices in anticipation of future holding tax burdens."
[email protected] Choi A-young Reporter