SEOUL, November 03 (AJP) - Purchases of residential properties by foreigners in the Seoul metropolitan area fell to their lowest level in nearly three years last month, following the government’s introduction of tighter restrictions on foreign real estate transactions.
According to data from the court, 560 foreigners completed ownership transfers for homes in Seoul, Gyeonggi Province and Incheon in October — the fewest since February 2023, when only 427 transactions were recorded.
Foreign purchases had climbed steadily earlier this year, from 606 in January to a peak of 1,051 in August, before slipping to 976 in September and continuing their decline in October.
The downturn coincides with a new permit system for home purchases by foreigners, introduced on Aug. 26, which designated all of Seoul and several surrounding districts as restricted zones. The measure limits purchases to properties intended for residence and requires prior approval from local governments.
The measure, part of a broader push to cool speculative housing demand, came amid growing public criticism that foreign buyers were gaining advantages in the housing market, including access to loans and tax loopholes.
Under the new rules, foreigners seeking to buy houses must obtain government approval and move into the property within four months of purchase, maintaining residence for at least two years.
Authorities have also intensified scrutiny of foreign real estate transactions, referring suspected tax evasion cases to the National Tax Service for investigation.
Foreign home purchases dropped across all major regions in October: from 174 to 133 in Seoul, from 540 to 288 in Gyeonggi, and from 262 to 139 in Incheon. Chinese nationals accounted for the largest share with 438 transactions, followed by Americans with 133 and Canadians with 33.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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