Increased Purchases of Seoul Apartments by Non-Residents: A Three-Year High

As apartment prices in Seoul continue to rise, there has been a notable increase in the number of non-residents buying apartments in the city

As apartment prices in Seoul continue to rise, there has been a notable increase in the number of non-residents buying apartments in the city. This article explores the recent surge in Seoul apartment purchases by non-residents, the factors driving this trend, and its potential implications.

Recent data indicates a significant increase in the number of non-residents purchasing apartments in Seoul, driven by the ongoing rise in property prices. According to Korea Real Estate Board, the number of apartment transactions in Seoul reached 6,150 in June, marking an 18.6% increase from the previous month. Among these transactions, 1,396 were made by buyers residing outside of Seoul, representing a 31.3% increase compared to the previous month. This figure is the highest since December 2020, when 1,831 transactions were recorded.

The trend of non-residents buying Seoul apartments has been steadily rising since the beginning of the year. The number of such transactions was 564 in January, 621 in February, 785 in March, 1,061 in April, and 1,063 in May, showing a consistent upward trajectory.

In terms of specific districts, Gwangjin-gu led with 120 transactions by non-residents, followed by Gangdong-gu with 110, Songpa-gu and Seongdong-gu with 101 each, Yeongdeungpo-gu with 74, Seocho-gu with 75, and Mapo-gu with 68. The proportion of non-resident buyers was highest in Gwangjin-gu (51.2%), Yeongdeungpo-gu (32.3%), Yongsan-gu (27.6%), and Dongjak-gu (27.5%).

From January to June, the highest number of non-resident purchases were in Songpa-gu (442 transactions), followed by Gangdong-gu (372), Seongdong-gu (335), Gangnam-gu (316), Yeongdeungpo-gu (305), and Mapo-gu (286).

Yoon Ji-hae, Chief Researcher at Real Estate R114, noted, “Rather than high-priced areas like Seocho and Gangnam, non-residents are increasingly targeting more accessible and desirable areas such as Gwangjin, Songpa, Gangdong, and Seongdong.” This suggests a growing preference for regions with lower prices but favorable living conditions and development potential.

Conversely, the number of non-resident purchases outside of Seoul has decreased to 4,287 cases, down 12.5% from the previous month. This decline indicates a relative stagnation in the real estate market outside Seoul.

The continued rise in Seoul apartment prices and the increasing interest from non-residents are likely to persist. With non-residents focusing on more affordable and promising areas within Seoul, this trend will have a significant impact on the city's real estate market. It is crucial to closely monitor changes in Seoul’s housing environment and property market dynamics in the future.