Banpo Xi 84m2 property tax reaches 18.1 million won, up more than 40%

As officially assessed values surged, property taxes on high-end apartments in the three Gangnam districts and Yongsan District this year have exceeded the 2021 peak and hit an all-time high. In this situation, the government is pushing ahead with tax reform centered on stronger property taxes, raising the prospect of an even heavier tax burden.
■ Property taxes hit record high as official values rise
According to a simulation by Woo Byung-tak, a senior researcher at Shinhan Premier Pathfinder, five of nine apartment types in complexes with official values above 3 billion won in the three Gangnam districts and Yongsan District are expected to face record-high property taxes this year.
For a single-home owner of an 84m2 unit at Banpo Xi in Banpo-dong, Seocho District, the estimated property tax for this year was calculated at 18.1 million won, excluding senior and long-term ownership tax credits. That is more than 40% higher than last year's 12.74 million won and also above the previous peak of 16.53 million won in 2021. The unit's officially assessed value rose 55.5% from 2.245 billion won in 2021 to 3.491 billion won this year.
An 84.97m2 and a 112.96m2 unit at Acro River Park in Banpo-dong, an 84.93m2 unit at Raemian Firstige, an 82.6m2 unit at the Jamsil Jugong 5 Complex in Songpa District, and a 235.3m2 unit at Hannam The Hill in Yongsan District were also analyzed as having record-high property taxes this year.
In 2021, the official value realization rate for apartment homes worth more than 1.5 billion won was 78.3%, while the fair market value ratios for comprehensive real estate tax and property tax were 95% and 60%, respectively. Since 2023, the realization rate has remained at 69%, the comprehensive real estate tax fair market value ratio has also stayed at 60%, and the property tax ratio has been in the 43% to 45% range. Even so, property taxes for some complexes have risen above 2021 levels.
■ Property taxes on standard Gangnam-area apartments could rise two to three times
The government is reviewing ways to raise the effective tax rate on property taxes for ultra-high-end homes. At a major real estate forum hosted by the president on the 23rd, one proposal called for applying an effective tax rate of 1%, which would mean a property tax of 50 million won on a home valued at 5 billion won. In that case, property taxes on 84m2 units in the Gangnam area could rise two to three times from current levels, according to some estimates.
The standard for ultra-high-end homes has not yet been finalized, but the market is discussing homes with official values of around 3 billion won. According to the Ministry of Land, Infrastructure and Transport, there are 50,869 apartment households with official values of at least 3 billion won this year, accounting for 0.32% of the country's 15,851,336 apartment households. Of those, 50,519 are in Seoul, or 99.3%. If the current average apartment realization rate of 69% is applied, apartments with market values of at least 4.3 billion won could fall into the ultra-high-end category.
Another variable is whether the basic deduction for single-home owners will be adjusted. The deduction limit, currently 1.2 billion won, is reportedly being considered for an increase to 1.3 billion to 1.5 billion won, but it has not yet been decided whether the same standard will apply to ultra-high-end homes.
A plan to raise the current 150% cap on property tax burden is also another variable. The government is conducting a research project to establish a roadmap for the official value realization rate and is expected to announce related measures as early as October or November.
[email protected] Jang In-seo Reporter