Seoul Property Gifts Approach 2,000

The number of 'gifts' – transferring ownership of properties for free – in Seoul approached 2,000 in April. This appears to be a result of more people opting for gifts before certain tax relief measures expire. Transaction volumes for multi-unit buildings, including apartments and officetels, reached their highest level since late 2022.

In April, a total of 1,980 multi-unit buildings in Seoul were registered as gifts. Multi-unit buildings encompass apartments, multi-family housing, and officetels. This figure represents a 47.2% increase from March's 1,345 cases, marking the highest total in three years and four months since December 2022 (2,384 cases). On a national scale, gift registrations also hit a record high of 5,560 cases since December 2022.

Among Seoul's districts, Songpa-gu recorded the highest number of gifts with 161 cases, while Yongsan-gu saw the largest percentage increase month-over-month, up 95.3%.

The surge in gifts is attributed to the temporary suspension of hefty capital gains taxes for multiple homeowners, set to end on May 9. Taxpayers with two homes will face an additional 20 percentage points on top of the base tax rate, while those with three or more homes will have an additional 30 percentage points applied. Multiple homeowners and elderly single-home owners have apparently decided it is more advantageous to transfer properties to their children as gifts, even if it incurs gift tax, rather than pay the increased capital gains tax.