The domestic housing demand among South Koreans has slowed due to factors such as high interest rates and concerns about an economic downturn. However, foreign interest in South Korean real estate remains robust. The Chosunilbo’s analysis of foreign investment by region reveals a concentration in areas with significant corporate investment, indicating that foreigners are expanding their property purchases beyond Seoul into regions like Asan, Cheonan, and Pyeongtaek.
Data from South Korea’s Supreme Court Internet Registry Office shows that last year, foreigners accounted for about 0.9% of all property buyers, totaling 15,614 individuals. While this falls short of the 2020 record high (19,371 individuals), it marks the highest proportion since data collection began in 2010.
In 2010, only 0.2% of transactions involved foreign buyers. However, the introduction of a system granting Korean citizenship to foreigners purchasing property in Jeju has led to a steady increase in foreign investment, notably driven by Chinese nationals.
Foreigners have shown a preference for collective buildings such as apartments, officetels, and offices within the domestic real estate market. Last year, they accounted for 1.21% of all buyers, a record high following the first instance of surpassing 1% in 2022.
In metropolitan areas, Incheon led with the highest foreign investment ratio in collective buildings at 2.09%, followed by South Chungcheong (1.74%), Gyeonggi (1.68%), Jeju (1.54%), North Chungcheong (1.21%), and Seoul (1.16%). Excluding Jeju, all these areas share common traits of abundant job opportunities and high demand for housing among young people.
This trend is further evident at the municipal level. For instance, in South Chungcheong Province, Asan (2.7%) and Cheonan’s Dongnam-gu (2.1%) recorded the highest foreign investment ratios. Asan hosts the country’s largest display production facility, while Cheonan’s Dongnam-gu is home to several large industrial complexes, including the LG H&H factory. In Gyeonggi Province, Pyeongtaek, known as the ‘semiconductor hub,’ saw foreign buyers accounting for 2.1% of collective building purchases last year, nearly double the national average.
Looking at real estate investments by nationality, China dominated with 11,157 individuals, comprising 65.1% of the total. Following were the United States (15.2%), Canada (3.6%), Vietnam (2.5%), Uzbekistan (2%), Russia (1.8%), and Taiwan (1.2%).
Lee Sang-woo, CEO of InvAID Investment Advisory, highlighted the growing trend of consulting firms in countries like China dedicated to aiding Korean real estate investments. He said, “This means foreign investors often have access to insights on par with locals.”
