00:02You're listening to AI PRISM, from Seoul Economic Daily.
00:06Before you sign anything in Korea's property market, here's a number to know.
00:12A simulation of 10 high-end Seoul apartments found holding taxes could jump more than 30% under a new
00:19luxury home threshold.
00:20The presidential office wants that tax hike, but with an exit ramp for people who sell.
00:26The ruling party and government meet July 30th to finalize the details.
00:31And a hoped-for 40-year fixed mortgage for young buyers just got shelved by rising rates.
00:37It's Tuesday, July 28th. Let's look at what's happening in Korea's property market.
00:43The government is preparing to redefine what counts as a luxury home for tax purposes,
00:49tied to a property's assessed value rather than how many homes an owner has.
00:53That matters because owners who cross the new threshold would lose part of their deduction
00:59and face a steeper tax rate on the excess.
01:02Two rounds of public forums have already narrowed the options,
01:06with a final tax reform plan expected late this month or in early August.
01:11Here's what the numbers show.
01:12A simulation of 10 high-end Seoul apartments found the comprehensive real estate tax on a 3.93 billion won
01:21Gangnam unit
01:22would jump 32.4% from 18.57 million won to 24.58 million won if the new luxury threshold
01:31takes effect.
01:33The proposed rule sets that threshold at 3 billion won in assessed value
01:38and cuts the basic deduction above it from 1.2 billion to 900 million won,
01:44with the ruling party and government finalizing details on July 30th.
01:48The presidential office is weighing a tax break for multi-home owners who sell into the market,
01:54alongside relief for retirees who move to the regions.
01:58Shinhan Bank has yet to launch its planned 40-year fixed-rate mortgage for buyers under 34,
02:04as benchmark bond yields climbed more than a percentage point since last year.
02:09The three-year Treasury bond yield hit 3.959% on July 24th, its highest level in a year.
02:17So what does this mean for homeowners and buyers navigating Korea's property market?
02:22Earlier, we said high-end owners could see a 30% tax jump.
02:27Here's what that actually means for you.
02:29If your sole property sits near or above the 3 billion won mark,
02:34next year's holding tax bill could rise sharply even without any change in the home's price.
02:39With the exact threshold still being negotiated through July 30th
02:43and a young buyer mortgage product stuck on ice,
02:47both ends of the market face more uncertainty before things settle in August.
02:52That's today's AI Prism Real Estate.
02:55This episode was produced with AI Assistants based on Seoul Economic Daily reporting
03:00and reviewed by a human editor.
03:03AI Prism is a WANIFRA award-winning series.
03:06We'll be back tomorrow.
03:07You've been listening to AI Prism from Seoul Economic Daily.
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