[Anchor]
The Gangnam real estate market is in a stir following the government's comprehensive real estate tax and capital gains tax revision proposals. As landlords are increasingly likely to move in themselves, housing anxiety among tenants is also growing.
Reporter Jeon Hyeong-u has the details.
[Reporter]
A real estate agent in Apgujeong-dong, Seoul, said inquiries have been pouring in since the announcement of the tax code revision proposals.
Most apartments in this area are ultra-high-priced units ranging between 6 billion and 7 billion won. Starting in 2028, even single-home owners residing in their properties will face an increase of 20 million to 30 million won in comprehensive real estate taxes.
[Park In-gu / Real estate agent in Apgujeong-dong : Consultations are continuing nonstop, even until just a moment ago. Elderly retirees were already burdened by current taxes, and some were considering selling.]
In particular, they believe that the introduction of a cap on capital gains tax deductions will deal a shock to the market.
[Park In-gu / Real estate agent in Apgujeong-dong : Capital gains range anywhere from 4 billion won to as much as 12 billion won. If a situation arises where only 1 billion won is deducted, those individuals will have no choice but to contemplate selling.]
Unlike Gangnam, which is centered on ultra-high-priced apartments, there are also forecasts that apartments in the 2 billion won range along the Han River belt—such as Mapo and Dongjak—might see the holding tax burden actually decrease, causing the market to remain strong.
[Ham Young-jin / Head of Woori Bank Real Estate Research Lab : Mid-to-low-priced areas with a demand for shifting to owner-occupancy when purchasing a home are expected to maintain price increases and a solid transaction trend similar to this year.]
Anxiety is already being detected in the lease market.
This is because landlords who own a single home without residing in it are expected to increasingly choose to live in their properties themselves to avoid tax burdens.
[Kim Yeon-sook / Real estate agent in Jamwon-dong : Even this morning, a client who owns a slightly larger property and is currently living on lease asked me, 'What should I do?' So I told her, 'Move in yourself.']
Tenants' concerns are also mounting.
[Jeonse Tenant : Landlords are all going to try to move into their own homes. Since there are many tenants like us who need to find new homes, won't it become increasingly difficult to find a place?]
There are numerous predictions that the rental housing shortage will worsen around popular areas, eventually leading to hikes in jeonse (lump-sum deposit lease) and monthly rent prices.
(Photo and video reporting by Seol Chi-hwan, Video editing by So Ji-hye)
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