Seoul, South Korea – The Ministry of Land, Infrastructure and Transport released a report on November 29th, revealing that foreign nationals now own nearly 100,000 homes in South Korea. As of the end of June 2024, foreign ownership of residential properties in the country reached 95,058 units, accounting for 0.49% of the total housing stock. This represents a 3.9% increase from the end of the previous year.
Chinese Nationals Dominate Foreign Ownership
Chinese nationals were found to be the largest foreign homeowners, accounting for 55.5% of all foreign-owned properties, with a total of 52,798 units. This number has increased by 4.9% since the end of last year, representing 68.5% of the overall increase in foreign-owned homes during the first half of 2024.
Following Chinese nationals, Americans owned 21,360 units (22.5%), Canadians owned 6,225 units (6.5%), Taiwanese owned 3,307 units (3.5%), and Australians owned 1,894 units (2.0%).
Busan Sees Increase in Foreign Homeownership
Busan, South Korea's second-largest city, saw a slight increase in foreign homeownership. As of June 2024, there were 3,007 foreign-owned homes in Busan, representing a 2.1% increase from the previous year. This places Busan as the fifth city with the highest number of foreign-owned homes, following Gyeonggi-do, Seoul, Incheon, and Chungcheongnam-do.
Concentration in Metropolitan Areas
The majority of foreign-owned homes in South Korea are concentrated in the metropolitan area, with Seoul, Incheon, and Gyeonggi-do accounting for 72.8% of the total.
Single-Family Homes Most Popular
The data also revealed that 93.4% of foreign homeowners in South Korea own only one property. Approximately 5.2% own two properties, while a smaller percentage own three or more.
Foreign Land Ownership
In addition to residential properties, foreign nationals also own a significant amount of land in South Korea. As of June 2024, foreigners owned 265,654,000 square meters of land, which is 0.26% of the total land area. Gyeonggi-do accounted for the largest share of foreign-owned land, with 48,998,000 square meters, representing 18.4% of the total.
Implications
The increasing trend of foreign ownership of residential and commercial properties in South Korea has significant implications for the country's real estate market and economy. It reflects the growing global interest in South Korea as a destination for investment and living. However, it also raises concerns about the potential impact on housing affordability and local communities.
[Copyright (c) Global Economic Times. All Rights Reserved.]
