South Korea imposes curbs on foreigners buying homes in Seoul
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Surging property prices have become a political liability for President Lee Jae-myung.
PHOTO ILLUSTRATION: PIXABAY
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SEOUL – South Korea has introduced new restrictions on foreign property purchases in the greater Seoul area, its latest effort to curb housing prices.
The new measures unveiled by the government on Aug 21 will require foreigners to get prior approval to buy a property from Aug 26.
Those granted approval must move into the home within four months of receiving permission and reside there for at least two years after the purchase, the land ministry said, adding that the policy will remain in effect for one year.
The measures are aimed at countering speculation in the housing market
The number of housing transactions by foreigners has increased by an average of 26 per cent annually since 2022, rising from 4,568 that year to 7,296 in 2024, the ministry said.
Chinese nationals account for 73 per cent of those purchases, followed by US citizens at 14 per cent.
Gyeonggi Province accounted for 62 per cent of such purchases in the Seoul metropolitan area, followed by Incheon at 20 per cent.
Surging property prices have become a political liability for President Lee Jae-myung, who took office in June pledging to ease living costs.
The Bank of Korea’s rate cuts since 2024 have fuelled demand, adding to speculative buying.
Mr Lee’s administration tightened mortgage lending in June, but apartment prices remain elevated and have risen for 29 consecutive weeks.
The property boom, coupled with swelling household debt
Total household debt rose by 24.6 trillion won (S$22.7 billion) in the April-June period, the biggest quarterly gain since the third quarter of 2021. BLOOMBERG
