It has been revealed that ultra-high-priced apartments in the heart of Seoul are being purchased by foreigners with cash. Contrary to the Yoon Suk-yeol administration's initial pledge to prevent foreign speculation, the actual number of homes owned by foreigners has increased significantly.
According to an analysis of data from the Korea Real Estate Board by Assemblyman Park Yonggab of the Land, Infrastructure and Transport Committee, the number of foreign homeowners rose from 82,666 in the second half of 2022 to 99,839 in the second half of 2024, an increase of 17,173. Notably, Chinese nationals accounted for an increase of 11,810, making up nearly 70% of the total growth.
A review of 2,899 home financing plans submitted by foreigners since the launch of the Yoon Suk-yeol administration found that 546 transactions (18.8%) involved homes priced at 1.2 billion won (approximately 1.2 million USD) or more. Among these, 89 transactions were between 3 billion and 5 billion won, 22 were between 5 billion and 10 billion won, and there were even 5 transactions exceeding 10 billion won.
These transactions were concentrated in Seoul's prime districts. Hannam-dong in Yongsan-gu recorded the most with 28 cases, followed by Banpo-dong in Seocho-gu and Yeouido-dong in Yeongdeungpo-gu (19 each), Oksu-dong in Seongdong-gu (16), Seocho-dong in Seocho-gu (15), Bundang-gu in Seongnam (13), Apgujeong-dong in Gangnam-gu, and Yeonnam-dong in Mapo-gu (12 each).
The most expensive transaction occurred in August 2023, when a Malaysian national, identified as Mr. A, purchased "Janghak Park Hannam" in Hannam-dong, Seoul, for 18 billion won in cash. In addition, an American national, Mr. B, bought "Hannam The Hill" for 12 billion won, paying 6.3 billion won in cash and financing the remaining 5.6 billion won with a loan. A British national, Mr. C, also purchased a unit in the same complex for 11 billion won in cash, while a Chinese national, Mr. E, bought "Gemstone Hills" in Seongbuk-dong for 10.6 billion won as a lump-sum cash payment.
Assemblyman Park Yonggab stated, "The government promised to prevent foreign speculation, but in reality, foreign home ownership has increased significantly." He pointed out, "Measures such as restrictions on foreign transactions or high tax rates, like those in Canada and Australia, are needed." Concerns are also mounting that foreign capital could further destabilize the domestic housing market.
-
Reporter Oh Yukyo 5625@asiae.co.kr
-
Edit Hur Eunmi eungmimon@asiae.co.kr
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
