After the government and ruling Democratic Party(DP) agreed to lower property taxes for people who own only one home that is worth less than the government-appraised value of 600 million won, all eyes are now on how the changes will affect the government's move to raise official home appraisal prices to reflect market rates.

The government is seeking to raise the official prices from the current 50 to 70 percent of the market value of a home to 80 to 100 percent.

But now that the government and the ruling party agreed on the 600-million-won cap, instead of 900 million won initially proposed by the DP, the government could lower the price increase to ease the tax burden on owners of low-to-mid-priced homes.

The ruling camp is reportedly thinking about raising the price to 90 percent of a home's market rate by 2035, with an annual increase of one percentage point in the first three years and three percentage points afterwards.

While the DP has denied speculation over increasing prices to 80 percent of a home's market value, the government could seek other ways to further cushion the impact.