Multi-homeowners, betting on ‘house price increase’ after receiving a property tax? ‘Hold on’ until how long

Although the base date for the taxation of possession tax (property tax + comprehensive real estate tax) has passed on the 1st of next month, the transaction drought in the real estate market continues. Although the government opened the door for transactions by easing the capital gains tax for multi-homeowners, it is interpreted that they are holding on with the expectation of a future increase in house prices. It is a move to wait until May of next year, even if the burden of the holding tax is to be taken care of right now.

In the case of buyers, on the other hand, in anticipation that house prices may fall, they are not hasty in the possibility of the Yoon Seok-yeol administration’s easing of loan regulations in the future. For the time being, the ‘watching market’ is expected to continue.

/Photo = Reporter Lee Myung-geun qwe123@

Apartment sales in Seoul have increased, but… ‘Trading drought’ continues

According to real estate big data company Asil, the number of apartments for sale in Seoul recorded 61,462 as of the 31st. This is the highest level since early August 2020. Apartment sales in Seoul declined rapidly from the second half of the same year, but gradually increased this year.

However, the sale is piling up, but it does not lead to actual transactions. According to the Seoul Real Estate Information Plaza, there were 1737 apartment transactions in Seoul in April. This is less than half of the 3,655 sales in April of last year, a year ago.

The trading volume in May also still had a reporting period (30 days), but as of May 31st, it was only 992 cases, far below the same period last year (4901 cases).

Earlier, in line with the launch, the government decided on the 10th to temporarily exclude the heavy and easing of capital gains tax for multi-homeowners for one year. The purpose was to activate transactions by allowing multi-homeowners to put up their properties. There is still time left until May of next year, but the desired effect is not yet evident.

/graphic=business watch.

‘Let’s hold on’… Will the property tax be cut in anticipation of rising house prices?

It is analyzed that there was not enough time for multi-homeowners to sell their properties. It is pointed out that it was difficult to make a sale except for urgent sales, as there were only 20 days until the tax base date on June 1 after the exclusion of medium and temporary capital gains tax on May 10th.

Koh Jun-seok, CEO of JEdu Investment Advisory, said, “There were already a certain number of people who sold houses last year, and it is true that it is not easy to sell a house within 20 days even if it is released. It is expected, but it is not in a rush to release it.”

In addition, it is interpreted that there is an expectation that house prices will rise due to deregulation in the future, as well as the exclusion of heavy transfer tax until May next year. In the end, it means that even if multi-homeowners pay the ownership tax right away, they will not lose money if house prices rise that much.

Ko Jong-wan, head of the Korea Asset Management Research Institute, said, “There are many multi-homeowners who think that it is necessary to wait and see because the transfer tax easing is until May next year.” There is a possibility that house prices may rise due to the increase, so it seems that they are trying to sell after watching this,” he explained.

/Photo = Reporter Lee Myung-geun qwe123@

The atmosphere to watch more is also emerging among buyers. As the new government is predicting the possibility of easing loan regulations, it means that the government is not hasty until a concrete policy is announced.

Director Koh said, “There are not many items for sale yet and the asking price has not gone down, but it is not easy to buy them at once. .

In addition, there is an analysis that it is necessary to wait a little longer to see if multi-homeowners will put out their properties one after another before the end of next year’s transfer tax benefits. This is because there are variables such as the new government easing the multi-home ownership tax in the future. In fact, the new government is also planning to re-examine the price increase plan pursued by the Moon Jae-in administration.

Jihae Yoon, senior researcher at Real Estate R114, said, “If the Yun Seok-yeol government promotes private rental housing registration, there is a possibility that some multi-homeowners will divert to rental business rather than offering their products. The market atmosphere will be determined by how it is decided.”

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.