More Taxes to be Levied on Detached Houses

The publicly notified prices of 200,000 “standard detached houses” are up 6.02 percent.

The increase is higher than last year’s 5.61 percent, and taxes, including property and general realty ones, on high-priced single-family homes are likely to increase considerably.

On January 30, the Ministry of Construction and Transportation published a notice of the prices for 200,000 standard detached houses as of January 1. Each city and county will publish a price notice for the rest based on the prices on the ministry’s notice at the end of April.

The number of houses priced under 100 million won is 154,284 (77.1 percent), followed by 44,399 (22.2 percent) for houses between 100 million won and 600 million won and 1,317 (0.7 percent) for over 600 million won.

Considering there are a total of 4.28 million detached houses nationwide, the number of detached houses priced over 600 million won, subject to the general realty taxes, are estimated at 28,000, about 6,000 more than last year.

Taxes on high-priced houses will increase as the prices on public notice are up, and the general realty standard application rate has increased from 70 percent to 80 percent.

According to tax accountant Kim Jong-pil, the public price of a single-family home in Cheongdam-dong is up 5.3 percent from 942 million won to 992 million won, while taxes are up 25 percent from 4.5372 million won to 5.6928 million won.

Increase rates by region are: 8.57 percent for the Seoul metropolitan area, 3.83 percent for five metropolitan cities, and 2.28 percent for cities and counties. By cities and provinces, Ulsan City showed the highest increase with 13.93 percent, followed by Seoul (9.10 percent), Gyeonggi (8.17 percent), Incheon (5.84 percent), Daegu (4.69 percent), and South Chungcheong (3.86 percent).

A single-family home in Sinmunno, Jongno-gu, Seoul, priced at 3.33 billion won, up 10.3 percent from last year’s figure, was the highest on the notice while a farmhouse in Yeongyang, North Gyeongsang Province was the lowest.

The public price notice open to formal objections is available at the ministry homepage (www.moct.go.kr) or city halls, county or district offices until March 2.

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