Home Acquisition Tax Revenues Surge

      July 19, 2021 13:25

      Home purchases have declined over the last four years but acquisition tax takings have surged more than 70 percent.

      According to data from the Seoul Metropolitan Government and Korea Real Estate Board, 951,948 homes were bought in the capital from 2017 to 2020, down 2.7 percent from the previous four-year period. But acquisition taxes collected by the Moon Jae-in administration surged 71.2 percent over the same period to W9.8 trillion (US$1=W1,143).

      This is mainly due to skyrocketing home prices, particularly high-rise apartments, on which the taxes are levied. The number of homes in Seoul costing less than W100 million fell 30 percent to just 73,080 over the last four years, while the number costing more than W1.2 billion surged 60 percent.

      Acquisition taxes on homes range from 1.1 percent to 3.5 percent depending on the size and price tag.

      According to the KREB, the average sale price of a home in Seoul in May stood at W720 million, up 51.4 percent from just four years ago.

      "The surge results from the Moon Jae-in administration's failed real estate policies," independent lawmaker Song Eon-seog said. "The government must shift its policy, ease regulations and boost housing supply." 

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