The South Korean government has signaled a potential simultaneous overhaul of property holding and transaction taxes to stabilize the real estate market [1, 2].
This move comes as the government attempts to address rising home prices and rental costs while managing a shortage of available listings. By adjusting the tax burden for multi-homeowners, officials hope to encourage more properties to enter the market and reduce overall instability [1, 2].
Market tension is rising in Seoul, particularly in districts like Seongdong-gu, where real estate agents report a surge in homeowner uncertainty. Many owners are now questioning whether to hold onto their assets or sell them based on the timing of the upcoming tax changes [1].
Data indicates a tightening supply of housing in the capital. Seoul apartment listings have decreased by approximately 20% [1] compared to one year ago. The decline has accelerated recently, with listings dropping more than 11% [1] in the two months following early May, a period when multi-homeowner properties had previously been more available.
Real estate professionals are seeing a direct impact on client behavior. "I consistently receive consultation requests regarding whether it is better to continue holding the houses they currently have or to dispose of them, and if so, when the best timing would be in relation to tax issues," said Kwon Hyo-ju, a licensed realtor in Seongdong-gu, Seoul [1].
The government is expected to announce the formal tax law amendment by late June 2026 [1, 2]. Until then, the market remains in a state of anticipation, as the balance between holding and transaction taxes often dictates whether investors release properties or wait for more favorable fiscal conditions [1, 2].
“Seoul apartment listings have decreased by approximately 20% compared to one year ago.”
The simultaneous reduction of both holding taxes (which penalize ownership) and transaction taxes (which penalize selling) is a strategic attempt to unlock a frozen market. When only one is lowered, owners may either cling to properties to avoid high exit costs or sell prematurely. By addressing both, the government aims to create a fluid environment where multi-homeowners feel financially incentivized to sell, potentially increasing supply and cooling the rapid rise of Seoul's apartment prices.
