"I will sell my house" under pressure from ultra-high property taxes... Properties in the three Gangnam districts appearing one after another

Photo by Reporter Kwon Jun-ho "With rumors circulating about stricter property taxes, there is a growing trend of some properties coming onto the market, particularly among the elderly with limited cash flow. While not exactly 'urgent sales,' there is a movement to dispose of them this time if the price is right.Photo by Reporter Kwon Jun-ho "With rumors circulating about stricter property taxes, there is a growing trend of some properties coming onto the market, particularly among the elderly with limited cash flow. While not exactly 'urgent sales,' there is a movement to dispose of them this time if the price is right.
" (Real estate agent A in Apgujeong, Gangnam, Seoul) As the government hints at stricter taxes for owners of ultra-high-priced homes classified as 'smart investments,' some properties are preparing to enter the market. This trend is concentrated in the three Gangnam districts (Gangnam-gu, Seocho-gu, and Songpa-gu), where properties worth billions of won are clustered; however, the possibility of this spreading to other regions cannot be ruled out depending on the direction of the government's tax reform.
Photo by Reporter Kwon Jun-ho "With rumors circulating about stricter property taxes, there is a growing trend of some properties coming onto the market, particularly among the elderly with limited cash flow. While not exactly 'urgent sales,' there is a movement to dispose of them this time if the price is right.
■ Owners Saying "I'll Sell My House" Appear One by One According to the real estate industry on the 29th, owners of ultra-high-priced homes have recently been appearing one by one, stating they are willing to sell their properties if the price is reasonable. A large complex in Apgujeong, Gangnam, Seoul, visited on this day, is a prime example.
This is an "ultra-luxury housing complex" where the lowest listed apartment price is over 5 billion won. In July alone, two transactions exceeding 10 billion won were concluded.
A nearby real estate agent stated, "For the elderly, whose cash flow expansion is effectively limited, an increase in property taxes reduces their disposable income," adding, "While it is only a minority, there are owners who feel the burden. " In fact, it has been identified that the tax burden is the reason for some of the properties currently on the market.
A similar trend is being observed in Seocho-gu, Seoul. A real estate agent in Seocho-gu, where homes exceeding 4 billion won were recently traded, remarked, "While children sometimes provide assistance, there are also cases where they cannot due to their individual circumstances," noting, "Amidst a wait-and-see attitude, some owners are beginning to deliberate whether or not to put their properties on the market.
" ■ "Life is difficult": Preparing to put properties on the market Owners of ultra-luxury homes are showing signs of preparing to put their properties on the market because their livelihoods could become difficult immediately if the tax burden becomes a reality. "For the elderly who rely on their current cash flow to cover expenses such as taxes, a property tax hike literally represents the emergence of uncertainty," said a real estate industry official.
"This is why many people feel vaguely anxious, even though the tax standards have not yet been finalized. " The market predicts that the standard for ultra-high-priced housing is an officially assessed value of 3 billion won or more.
4 billion won. Areas likely to see an expansion of the property tax include the three Gangnam districts, as well as Yongsan and Seongdong districts.
According to the Ministry of Land, Infrastructure and Transport's real transaction price disclosure system, the three Gangnam districts accounted for an overwhelming 95% of apartment transactions exceeding 4 billion won between July 1 and 27. Gangnam-gu recorded the highest number with 14 cases, followed by Seocho-gu with 4, Songpa-gu with 2, and Seongdong-gu with 1.
If the threshold is expanded to 3 billion won, it would include Yangcheon-gu, Yeongdeungpo-gu, and Gwangjin-gu. Some voices suggest that the standard for ultra-high-priced housing could be set at a market value of 3 billion won rather than the officially assessed price.
In this case, the likelihood of properties coming onto the market increases. A real estate agent at a complex in Gangnam-gu facing reconstruction predicted, "There are quite a few long-term residents with poor cash flow," adding, "If the market value is set at 3 billion won, the repercussions will be significant.
" However, even if the property tax is expanded, the likelihood of "quick sales" is low. A real estate agent near Apgujeong conveyed the atmosphere, stating, "If they are told they can only sell as a quick sale rather than at a reasonable price, they will hold out by any means necessary," and adding, "In fact, there are owners saying, 'Let's just hold out for four more years.
Photo by Reporter Kwon Jun-ho "With rumors circulating about stricter property taxes, there is a growing trend of some properties coming onto the market, particularly among the elderly with limited cash flow. While not exactly 'urgent sales,' there is a movement to dispose of them this time if the price is right.
'"
Photo by Reporter Kwon Jun-ho "With rumors circulating about stricter property taxes, there is a growing trend of some properties coming onto the market, particularly among the elderly with limited cash flow. While not exactly 'urgent sales,' there is a movement to dispose of them this time if the price is right.
[email protected] Kwon Jun-ho Reporter