In the four years since the Moon Jae-in administration was launched on March 15, 2021, the official price of apartment houses in Seoul has jumped by 73%. The nation also increased by 39.47%. According to the ‘2021 public housing price (proposal)’ announced by the Ministry of Land, Infrastructure and Transport on the 15th, the national public housing public price has risen at a constant rate of 5% per year for the three years from 2017 to 2019. The official price of apartment houses nationwide, which rose by 5.02% in 2018, rose by 5.23% and 5.98% in 2019 and 2020, respectively. In 2021, the publicly announced price of apartment houses in the country surged to 19.08% at once, indicating that the increase in the publicly announced prices of apartment houses in the country also increased.
The official price of apartment houses in Seoul has risen 72.83% since the inauguration of the Moon Jae-in administration. As the publicly announced price soared, the burden on the ownership tax also increased significantly. Byung-tak Woo, manager of Shinhan Bank’s Real Estate Investment Advisory Center, simulated annual ownership tax for Banpozai 84㎡ and Hannam The Hill 235㎡, showing that the burden of ownership tax increased sharply this year for both apartments. The amount of tax was calculated assuming that one homeowner who is 59 years old and has owned an apartment house for less than five years does not receive tax credits.
The holding tax of 84㎡ of Banpozai in 2017 is 4.41 million won. According to the simulation, the increase in the Banpozai ownership tax in the announcement of this published price exceeded the increase in the last three years. Banpozai ownership tax in 2021 is expected to be about 19.29 million won. The increase was about 8,23 million won, which is higher than the increase in the previous three years. The amount increased over the past four years was about 14.88 million won. Hannam The Hill’s 235m2 was also found to have surpassed the increase in the previous three years due to the announcement of the published price in 2021. The Hannam The Hill ownership tax was estimated to increase by 36.8 million won over four years.