Will Demand Shift to 'Less Smart' Single Homes? Growing Concerns Over Jeonse and Monthly Rent Market

[Anchor]

Will this tax reform plan truly be able to resolve issues in the real estate market? While there is a possibility that properties may be temporarily released onto the market, concerns are simultaneously being raised about the jeonse (lump-sum lease) and monthly rent market.

Reporter Chae Heesun takes a closer look.

[Reporter]

The market, which had maintained a wait-and-see stance ahead of the announcement of the tax reform plan, expects transactions to increase.

[Jung Ji-shim / Real Estate Agent (Gangnam-gu, Seoul): We expect inquiries to increase somewhat. For the elderly, if their tax burden grows, continuing to hold onto properties becomes quite burdensome....]

First, projections suggest that properties from elderly people and owners of multiple homes attempting to avoid tax burdens will hit the market.

In particular, because the heavy capital gains tax on multiple-home owners has been eased once again, evaluations indicate that conditions are favorable to draw out listings until 2028.

However, some outlooks remain uncertain as to whether this can lead to overall price stability in the real estate market, even if it temporarily eases the lock-up of listings.

This means demand could flock to homes with an official assessed price of 1.4 billion won or less—which are excluded from the comprehensive real estate holding tax—and to so-called "less smart" single homes that carry a relatively low tax burden.

[Nam Hyuk-woo / Woori Bank Real Estate Analyst: Psychological resistance lines are likely to form in the tax base brackets where property tax rates surge. Demand could increase in secondary regions rather than the most preferred areas.]

There were many voices of concern regarding the jeonse and monthly rent market.

This is because as the burden on single-home owners who do not reside in their properties grows, the incentive to make tenants leave and move in directly has increased.

[Kim Hyun-dong / Professor of Business Administration, Pai Chai University: The unstable situation in the Gangnam lease market might affect the lease markets in Yongin, Bundang, and Gwacheon, or have the effect of pouring fuel on rising home prices.]

Opinions are also emerging that the increased taxes will be reflected in jeonse and monthly rent prices, ultimately passing the burden onto tenants.

(Video Report: Lee Jae-young | Video Editing: Park Choon-bae | VJ: Jung Han-wook)
※ Please note: This article was translated by AI and may contain errors.