Foreign Home Purchases in Seoul, Gyeonggi, and Incheon Reach 4,431 from January to July
Uzbek Buyer Makes Headlines with 7.4 Billion Won Cash Purchase of Seocho Apartment
As most areas in Seoul, Incheon, and Gyeonggi Province have been designated as zones requiring foreign land transaction permits, the number of homes purchased by foreigners in the Seoul metropolitan area is expected to reach an all-time high this year.
According to the Ministry of Land, Infrastructure and Transport on the 23rd, the number of metropolitan area homes bought by foreigners has increased by 26% each year, with ▲4,568 transactions in 2022, ▲5,937 in 2023, and ▲7,296 in 2024. In particular, from January to July this year, there were 4,431 transactions (Seoul: 840, Gyeonggi: 2,815, Incheon: 776), suggesting that the annual figure will set a new record by the end of the year. As foreign home purchases have increased, the government has responded by designating foreign land transaction permit zones to curb speculation.
Although all apartments in the three Gangnam districts and Yongsan District in Seoul have been designated as permit zones, foreign home transactions have actually increased. The number of transactions in the three Gangnam districts and Yongsan District dropped from 53 in April to 18 in May and 10 in June, but rebounded to 29 in July.
As of the end of last year, foreigners owned a total of 100,216 homes nationwide. By nationality, Chinese nationals accounted for more than half, at 56.2% of the total, followed by those from the United States, Canada, and Australia. Americans showed a strong preference for the Gangnam area, owning 2,228 homes in the "three Gangnam districts" alone: 1,028 in Gangnam District, 742 in Seocho District, and 458 in Songpa District. Notably, in November last year, a man in his 40s from Uzbekistan made headlines by purchasing a 244-square-meter apartment in Seocho District for 7.4 billion won in cash, setting a new record for the highest reported transaction price. Foreigners also owned 1,266 homes in the so-called "Ma-Yong-Seong" areas-Mapo, Yongsan, and Seongdong Districts-highlighting a clear preference for central Seoul locations.
Among these transactions, there are many cases where the buyer is a minor, where a high proportion of the purchase price is paid in cash, or where the contract sets a new record for transaction price, raising suspicions of speculation. Furthermore, since foreigners who secure funding from abroad are not subject to loan regulations, controversy over "reverse discrimination" has arisen. In response, the government has decided to designate all of Seoul, 23 cities and counties in Gyeonggi Province, and 7 autonomous districts in Incheon as land transaction permit zones for one year starting on the 26th. As a result, foreigners wishing to purchase a home within these zones must obtain prior approval, move in within four months of approval, and reside there for at least two years. Additionally, requirements for submitting funding plans and supporting documentation will be strengthened.
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