End of the Heavy Transfer Tax Grace Period: 'The President Has Drawn His Sword' / Shock Thrown into the Real Estate Market... Asset Owners Begin Selling | Professor Han Moon-do

Summary

Professor Han Moon-do discusses President Lee Jae-myung's decision to end the heavy capital gains tax grace period for multiple-home owners by May 9, interpreting it as a strong sell signal for real estate. Han expects a broad overhaul of Korean real estate taxes, including higher holding taxes and tighter long-term deduction rules for non-resident homes. He sees the Gangnam apartment market already correcting, while highlighting the Seoripul public housing project as a rare half-price supply opportunity. The discussion also covers supply policy, tax revenue pressures, and the political messaging behind the policy shift.

• President Lee Jae-myung signaled an end to the heavy transfer-tax grace period, allowing only qualifying transactions through May 9.
• Professor Han Moon-do reads the policy as a clear sell signal for multiple-home owners and expects comprehensive real estate tax reform.
• He expects holding taxes to rise and long-term capital gains deductions to be limited to owner-occupied homes.
• Gangnam apartment transaction volumes have fallen and wealthy sellers are reducing exposure, according to Han.
• Supply from third-generation new towns and demographic decline are additional headwinds for real estate investment.
• Han points to the Seoripul District project as a rare half-price housing opportunity in Gangnam.
• He also criticizes LH reform execution and says the president's messaging should be analyzed seriously.