South Korea to raise tax on ultra‑high‑value primary homes

Presidential policy chief Kim Yong‑beom said the government will treat primary residences that exceed ultra‑high price thresholds differently, planning to increase the property holding tax for such homes. He indicated that the tax hike could be offset temporarily by lowering capital‑gains tax for a limited period to stimulate sales. Kim noted that price levels of 20 billion to 50 billion won are under public review and that the reform will differentiate between ordinary and ultra‑expensive housing.

At the same time, Seoul’s Gangnam districts are seeing record‑breaking apartment sales, with the Apgujeong‑area Shin‑Hyundai tower fetching over 100 billion won. The surge follows the re‑election of Mayor Oh Se‑hoon, boosting expectations that redevelopment projects and fast‑track housing policies will continue. Analysts say high‑price, low‑supply units in Gangnam are being viewed as a safe‑haven asset amid market volatility, reinforcing the government’s push for tax and supply reforms.