More than half of South Koreans believe that raising holding taxes on high-priced homes will not help stabilize housing prices, a new survey shows. The findings come as the government prepares to unveil a real estate tax reform package centered on higher holding taxes — yet opposition to such a hike also outweighs support, according to the poll.
The Reform Institute, the Reform Party's policy research arm, released results Tuesday from a survey of 500 men and women aged 18 and older nationwide, conducted Monday. Some 54.2 percent of respondents said higher holding taxes on expensive homes would "not help" stabilize prices, while 41.6 percent said they would help. Among all responses, "not helpful at all" was the single most common answer, at 42.8 percent.
Skepticism was especially pronounced among younger and non-homeowning respondents. Among those aged 18 to 29, 72.9 percent said the measure would not help, as did 65.8 percent of those in their 30s. Among non-homeowners, 62.8 percent were pessimistic about its effectiveness.
Opposition to raising holding taxes outpaced support, though within the margin of error. Some 50.2 percent opposed the measure and 44.7 percent supported it, with "strongly opposed" the most common single response at 40.0 percent.
When asked what actual transaction price threshold should define a "high-priced home" subject to higher holding taxes, 30.0 percent chose 3 billion won ($2.05 million) or more — the most popular answer. That was followed by 2 billion won or more (26.3 percent), 1 billion won or more (19.5 percent) and 4 billion won or more (15.8 percent).
Reform Party leader Lee Jun-seok said the results show that "the approach of trying to control home prices through taxation is failing to win public support." He added that young people and non-homeowning working-class citizens are most anxious that the burden — first from lending restrictions and now from higher taxes — will fall on genuine end-users, and called on the government to "answer with supply, not taxes."
Meanwhile, the National Assembly Budget Office said Monday in a report comparing housing holding tax systems in major countries that South Korea concentrates its heavier tax burden on owners of multiple homes. Approaches varied by country: Singapore levies higher taxes on non-owner-occupied properties, Britain, France and Germany on secondary residences, and Canada, Britain, France and Japan on vacant homes.
The survey was conducted via automated response system using wireless random-digit dialing. The margin of error is plus or minus 4.4 percentage points at the 95 percent confidence level, and the response rate was 1.62 percent.
thanks@heraldcorp.com
