Hike in official listing prices to hit owners of only one house and retirees

Official listing prices for apartment houses in Seoul, including that of apartments worth over 600 million won, have soared by 15 percent this year. Concerns are rising that the tax increase targeting real-estate speculators, who own multiple houses, could hit people with only one house and incomeless retirees.

The government said on Thursday that the official listing prices of apartments worth 900 million won or less have been adjusted according to market value. The released official listing prices for apartments, however, have increased relatively sharply unlike the government’s announcement. For example, the official listing price for Samsung apartment (84m²) in Seodaemun-gu, Seoul has jumped from 343 million won last year to 412 million this year, up by 20.1 percent and that of Hyundai Home Town (84m²) in Mapo-gu, Seoul has increased by 23.4 percent from 431 million won last year to 532 million won this year.

It appears many people, who own only one house that are 84m² or less in size in Gangbuk areas, such as Yongsan, Mapo, and Seongdong districts, will be subject to comprehensive real estate holding tax this year.

“It could put an enormous burden on incomeless retirees, who own only one house,” said Minjoo Peace Party’s floor leader Jang Byung-wan, who served as the head of the Ministry of Planning and Budget under the Roh Moo-hyun administration. “A sudden hike in official listing prices, which affect apartments in general, would hit ordinary people.”

After the government’s announcement, a series of petitions have been filed at the presidential office Cheong Wa Dae’s official bulletin board. “A hike in official listing prices for apartments would hit incomeless retirees and owners of only one house. The government should come up with countermeasures,” wrote one petition.


Jae-Myung Park jmpark@donga.com