Surge in Domestic Real Estate Purchases by Chinese Buyers... Especially Favoring the Southwestern Seoul Metropolitan Area

US Nationals Prefer Pyeongtaek and Gangnam Areas

[Asia Economy Reporter Onyu Lim] As the number of Chinese purchasing domestic real estate increases, a particularly high preference for the southwestern region of the Seoul metropolitan area has been observed.

On the 17th, Zigbang analyzed the ownership transfer registration statistics based on sales announced by the Registration Information Plaza and found that the number of foreigners who purchased real estate in Korea increased significantly from 4,307 in 2010 to 19,368 last year. Although it still accounts for less than 1% of the total, the rapid growth is notable.

Looking at the nationalities of foreigners who purchased real estate, China, the United States, and Canada have maintained the top three positions since 2010. In particular, China ranked third with 10.96% in 2010 but rose to second place with 18.17% and 26.57% in 2011 and 2012, respectively. Since 2013, its share has steadily increased, maintaining the top position with an overwhelming 60-70% share over the past five years. Meanwhile, the United States accounted for more than half at 52.68% in 2010 but has maintained a share in the 10% range over the past five years.

Foreigners of Chinese nationality purchased the most real estate in the Gyeonggi region. As of last year, 51.34% (6,888 cases) of their real estate purchases were in this area. Next, they purchased a significant amount of real estate in Incheon (17.54%, 2,353 cases) and Seoul (9.94%, 1,333 cases). At the city and county level, Bucheon City in Gyeonggi and Bupyeong District in Incheon were the most purchased areas, showing a particularly high preference for the southwestern part of the Seoul metropolitan area.

Foreigners of American nationality also purchased the most real estate in the Gyeonggi region (30.45%, 500 cases), but unlike Chinese nationals, they also purchased a considerable amount in Seoul (22.78%, 374 cases). Other regions frequently purchased by Americans annually included Chungnam (10.72%), Incheon (7.43%), and Gangwon (6.03%). At the city and county level, Pyeongtaek City in Gyeonggi, which had issues related to U.S. military bases, was the most purchased area. Yeonsu District in Incheon, where Songdo International City is located, was also heavily purchased in 2018 and 2019. Additionally, affluent areas such as Gangnam-gu and Yongsan-gu in Seoul saw many transactions.

Ham Young-jin, head of Zigbang Big Data Lab, pointed out, "While regulations to stabilize the real estate market continue to strengthen, foreigners who find it difficult to prove the number of houses they own or the source of funds are relatively freer compared to locals, leading to controversy over reverse discrimination." He added, "Although the proportion of foreign transactions is negligible compared to the total real estate transactions, the impact by region may differ." He advised, "As the domestic economy grows and foreign investment increases accordingly, it is necessary to improve the insufficient laws and systems."

This content was produced with the assistance of AI translation services.