Chinese Buyers Retreat from Seoul’s Real Estate Market? Foreign Purchases Plummet by 2,000 [Real Estate AtoZ]

Of the 2,000 Fewer Buyers, 73% Were Chinese Nationals

Real Estate 'Shopping Spree' Until the Day Before Permit Zone Policy Began

Designation Period Expires on the 25th of This Month

Few Loan Restrictions on Foreign Borrowers

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Over the past year since the implementation of the Foreigners' Land Transaction Permission Zone, more than 2,000 fewer foreigners purchased apartments, commercial properties, and similar real estate in the Seoul metropolitan area. Seven out of ten of these declines were attributed to Chinese buyers. As the initial designation period is set to end on the 25th, the government is leaning toward an extension of the measure.

Apartment complex area near Dongtan Station, Hwaseong City, Gyeonggi Province. Photo by Yonhap News Agency

According to court property registration data as of August 6, from September of last year—immediately after the designation of foreigner land transaction permission zones—until last month, 9,184 foreigners purchased collective properties such as apartments, officetels, or commercial spaces in Seoul, Gyeonggi Province, and Incheon. This figure represents a decrease of 18.1% (2,025 individuals) compared to the same period prior to the regulation (October 2024 to August 2025), which saw 11,209 foreign buyers. Given the monthly statistics, August 2025—when the regulation was enforced on August 26—was counted as part of the pre-regulation period.

Previously, the government designated the entirety of Seoul, 23 cities and counties in Gyeonggi Province, and seven districts in Incheon as land transaction permission zones in August last year to curb real estate speculation by foreigners. Foreigners purchasing homes in these zones must obtain local government approval and reside at the property for two years.

Of the overall decrease of 2,025 buyers, 1,470 individuals (72.6%) were Chinese nationals. The number of Chinese buyers in the metropolitan area dropped 19.6% from 7,489 to 6,019 over the same period. In Seoul, Chinese buyers declined by 9.2%, from 844 to 766, while American buyers also dropped 3.1%, from 632 to 612.

An apartment view from Namsan, Seoul. Photo by Yonhap News Agency

Outside the metropolitan area, the number of foreign buyers fell slightly from 4,901 to 4,841, a 1.2% decrease, indicating little practical change. This is explained by the fact that the permission zones only apply within the metropolitan area.

Regionally, the decrease was most significant in Gyeonggi Province, where the number of foreign buyers fell by 21.6%, from 6,812 to 5,339. In Incheon, the figure dropped by 17.4%, from 2,344 to 1,936, and in Seoul, it decreased by 7%, from 2,053 to 1,909.

Before the system was implemented last year, there was a rush of property registration applications by foreigners. In August 2025, the number of foreign buyers in the metropolitan area increased by 6.5% to 1,211, up from 1,137 the previous month—the highest since October 2021 (1,128 buyers). In Incheon, the number rose by 56.4%, from 243 to 380 month-on-month. Compared to the same month the previous year (183 buyers), this more than doubled.

After implementation, the number of buyers in the metropolitan area was 1,154 in September and then dropped by 32% to 785 in October. As there is a time lag between property contracts and registration of ownership, some transactions conducted prior to enforcement were likely reflected in the September registrations.

With the designated deadline of the 25th approaching, the Ministry of Land, Infrastructure and Transport is now reviewing an extension. As numerous violations—such as expedient gifts and illegal remittance of overseas funds—have been detected in the metropolitan area, the likelihood of an extension is increasing.

The ministry announced it will determine whether to extend the zone after a review by the Central Urban Planning Committee. A ministry official commented, "A final decision will be made after completing the necessary procedures and reviews."

This content was produced with the assistance of AI translation services.