Oh Se-hoon, the mayor of Seoul, ordered on the 2nd to accurately grasp the situation of foreign real estate transactions to prevent domestic victims. Recently, there has been an increase in the purchase of domestic real estate by foreigners, and it is noteworthy that more than half of the dwellings owned by foreigners are held by Chinese individuals. As the demand for housing by foreigners, including Chinese, has surged, causing housing prices to skyrocket in major cities like Vancouver, the Seoul city government has stated that it is reviewing Canada’s example of temporarily banning foreign housing ownership.
According to the Seoul city government on the 2nd, Mayor Oh ordered during a meeting with executives to investigate the increase in foreign-owned real estate and to promptly propose related measures to the Ministry of Land, Infrastructure and Transport to prevent domestic citizens from suffering.
According to statistics on land and dwelling ownership by foreigners released by the Ministry of Land, Infrastructure and Transport, as of the end of 2024, there are 100,216 dwellings owned by foreigners. By nationality, Chinese ownership accounted for the largest share at 56,301 dwellings (56.2%).
Of all foreign-owned dwellings, those located in Seoul amount to 20,341 dwellings (23.7%). Looking at land owned by foreigners by area, a total of 26,790,500㎡ shows that 5,685,200㎡ is concentrated in the metropolitan area.
In Seoul, domestic citizens go through various regulations and complex procedures, such as finance and taxes, when purchasing land, dwellings, and other real estate. However, foreigners can relatively easily buy property, raising concerns about reverse discrimination.
The Seoul city government plans to investigate and analyze the impact of excessive housing purchases in the region by foreigners, including Chinese, on the real estate market and whether there is fairness with domestic citizens. The government also intends to formulate systematic measures to propose to the Ministry of Land, Infrastructure and Transport.
The Seoul city government also plans to reference the situation in Canada. Following criticisms that foreign funds, particularly from Chinese individuals, have flowed into the real estate markets of major cities like Vancouver, driving up housing prices, the Ministry of Finance extended the deadline for the ban on foreign housing ownership from January 1, 2025, to January 1, 2027, by two years.
The ban on purchasing dwellings targets overseas corporations, Canadian corporations owned by foreigners, and general foreigners. Foreign workers with work permits, students who meet certain criteria, and refugees are exempt from these regulations.