'Who knew prices would rise this much?' Elderly Gangnam homeowners reel over tax overhaul

Real estate markets in Seoul's Apgujeong-dong and Banpo-dong are in turmoil following the government's tax reform plan.

The government announced the overhaul on Monday, shifting the basis of property taxation away from the number of homes owned toward housing value and actual residency status.

Apgujeong-dong and Banpo-dong are home to some of the most expensive apartments in the country, and many elderly single-homeowners have lived in the same unit for decades. While property values have soared, the resulting increase in holding taxes could translate into an immediate cash burden for retired owners with little to no income.

Jang, an 85-year-old resident of Apgujeong-dong in Gangnam-gu, said she has lived in her apartment for 45 years. "Who could have known prices would rise this much?" she said. "I own just one home, but I've become 'house poor' — I'm old and have no income."

The head of a real estate agency in Banpo-dong said several people visited the office immediately after the government's announcement, with one customer sitting for three to four hours doing nothing but worrying about taxes before leaving. "There were also cases where people actually listed their properties for sale," the agent said.

The Real Estate 360 team visited Apgujeong-dong and Banpo-dong to report on the confusion that has gripped the neighborhoods since the tax reform was announced. The video above shows why elderly single-homeowners say they have become "house poor" — and whether properties are actually coming onto the market.