Total housing property tax surges 15% in a year to 3.7 trillion won; Taxpayers aged 80 and older increase by 18,000

The number of high-bracket taxpayers in Seoul who were assessed more than 5 million won ($3,600 approx.) in property taxes for apartments, detached houses, row/multi-family houses, and officetels has exceeded 100,000 for the first time this year. This is analyzed to be the result of soaring housing prices in major areas of Seoul, which significantly raised government-assessed official prices, pulling more properties into high-tax brackets and sharply increasing the tax burden.

According to data submitted by the Seoul Metropolitan Government to Representative Choi Eun-seok of the People Power Party on the National Assembly's Strategy and Finance Committee on the 21st, the number of taxpayers in the property tax bracket exceeding 5 million won this year was tallied at 106,799. This is an increase of 34,017 (46.7%) from last year (70,278), breaking the previous record high of 87,462 set in 2021 during the real estate market boom, marking the largest scale in history.

By region, Gangnam-gu accounted for 43,556 and Seocho-gu for 28,971 among the high-bracket taxpayers subject to property taxes exceeding 5 million won this year, with the two autonomous districts accounting for 67.9% of Seoul's total high-bracket taxpayers.

By tax bracket, the 3 million to 5 million won bracket increased by 20.5% year-on-year to 179,296 people, and the 1 million to 3 million won bracket rose by 8.1% to 744,724 people, showing an across-the-board increase in high-bracket taxpayers. Meanwhile, the number of taxpayers in the 1 million won and below bracket decreased.

Holders of ultra-high-priced homes also surged significantly. Taxpayers holding homes with an official price exceeding 3 billion won jumped 129.7% from 37,393 last year to 85,887 this year. Among them, Gangnam-gu (41,723) and Seocho-gu (30,303) accounted for a total of 72,068, representing 83.9% of all owners of properties exceeding 3 billion won in Seoul. The 2 billion to 3 billion won official price bracket also rose by 82.4% to 214,622 people.

According to the Ministry of Land, Infrastructure and Transport, this year's realization rate of official prices for apartment units was frozen at 69%, the same as the previous year. However, the official prices of apartment units in Seoul rose by an average of 18.6% compared to the previous year, acting as a major factor driving up the tax burden.

Property tax payers in Seoul aged 80 and older reached 235,808 this year, a 343% surge over 14 years compared to 2012 (53,237). Conversely, taxpayers in their 30s and younger dropped 23% from 396,328 to 306,079 over the same period.

Meanwhile, the total amount of housing property taxes levied across Seoul this year totaled 3.7678 trillion won, a 161% increase from 2012 (1.4434 trillion won). As the increase in tax revenue far exceeded the 30.4% growth in the number of taxpayers over the same period, the average tax levy per person doubled from 610,000 won to 1.22 million won.

Representative Choi Eun-seok pointed out, "The sharp surge in high-bracket property taxpayers and owners of homes with official prices exceeding 3 billion won in Seoul is a figure that vividly shows the aftermath of rising housing prices." He added, "The government must promptly prepare effective supply expansion measures to cope with housing market stabilization and regional housing market imbalances."

[ⓒ Global Economic Times. 무단전재-재배포 금지]