Government Considers Tweaking Real Estate Tax for Multi-Homeowners: 3 Key Impacts on the Market

As tax resistance against the proposed hike in comprehensive real estate holding taxes for multi-homeowners intensifies, the government has begun reviewing a "tweaked mitigation" plan, including expanding exceptions for non-resident single-home owners. This is largely evaluated as a desperate measure amid the policy dilemma of inducing housing supply while ensuring tax equity.

Why is the tax tweak being discussed now?

In August 2026, the core of the government's tax reform was a shift from a tax system based on the "number of homes" to one based on the "total value." However, this resulted in a sharp increase in the tax burden for multi-homeowners, spreading fears of tax incidence shifting to tenants. In particular, as non-speculative owners, such as temporary two-home owners and non-resident single-home owners, faced punitive taxation, demands for a "targeted revision" poured in.

Experts analyze that the government's current review goes beyond simple tax relief; it is a preemptive measure to resolve instability in the jeonse (deposit-based rent) and monthly rent markets. Excessive pressure on multi-homeowners could immediately lead to a contraction in rental housing supply and skyrocketing rental prices, particularly in Seoul apartments.

3 Key Impacts on the Real Estate Market

• Continued Preference for a "Premium Single Home": As benefits for non-resident homes become stricter, listings in outlying areas are expected to increase, while the concentration of assets in core areas, such as the three Gangnam districts, is projected to deepen.

Increased Volatility in the Rental Market: If the holding tax burden on multi-homeowners is reduced, the tax burden previously passed on to tenants may be partially alleviated. However, lingering concerns over reduced supply mean the jeonse shortage is unlikely to be resolved instantly.

Wait-and-See Approach Driven by Policy Uncertainty: Until the targeted mitigation passes the National Assembly's legislative process, multi-homeowners are highly likely to hold off on selling and maintain a strong wait-and-see stance.

FAQ on Real Estate Tax Reform

Q. How will the tax burden gap between single and multi-homeowners change?

According to the amendments currently under discussion, the basic deduction for single-home residents will be raised (from 1.2 billion to 1.4 billion won), significantly reducing their burden. However, multi-homeowners are still likely to face disadvantageous conditions, such as the fair market value ratio, meaning the gap will likely remain.

Q. Will this reform cause housing prices in outlying areas to drop?

Since multi-homeowners are highly likely to sell off their "non-core homes" in provincial or outer metropolitan areas first to reduce their tax burden, there could be increased downward price pressure in those regions in the short term.