S. Korea Tightens Property Rules, Hikes Tax

South Korea said it will further tighten property market rules and impose heavier taxes on multiple homeowners as more than 20 rounds of cooling measures introduced in the past three years failed to calm runaway home prices. Real estate taxes that kick in on properties valued over 600 million for multiple home owners will be increased, while capital gains tax rates will also be raised. The proposed measures will need parliamentary approval. Anger over South Korea’s failure to calm runaway home prices has spilled onto top government officials with multiple residences, who are under pressure to sell their second homes to show they are committed to the policy drive. The policy has focused on imposing heavier tax penalties and mortgage curbs for multiple home owners, as the left-leaning government increasingly blamed renters for stoking a housing bubble. But as median apartment price in Seoul surged more than 50% through such curbs in the past three years, pressure to unload extra homes has seen top government officials racing to sell their second residences.