The Ministry of Land, Infrastructure and Transport (Minister Kim Yoon-deok) announced on the 12th that foreign housing transactions in Seoul and major areas have significantly decreased due to the effectiveness of the Foreign Land Transaction Permission Zone designated in the metropolitan area last August to curb foreign real estate speculation.
According to a comparison of housing transaction volumes from September to December 2024 and the same period in 2025, foreign housing transactions in the metropolitan area decreased by 35% (from 2,279 to 1,481 transactions).
By city and province, Seoul saw the largest decrease at 51% (from 496 to 243 transactions), followed by Gyeonggi Province at 30%, and Incheon at 33%. The overall transaction share in the metropolitan area remained similar to last year with Gyeonggi at 67%, Seoul at 16%, and Incheon at 17%.
In Seoul, transactions in the three districts of Gangnam (Gangnam, Seocho, and Songpa) and Yongsan-gu decreased by 65%. Notably, Seocho-gu recorded the largest decrease among the 25 districts, falling 88% from 92 transactions to 11.
In Gyeonggi Province, Bucheon, which has a high number of foreign transactions, fell by 51% (from 208 to 102 transactions), and in Incheon, Seo-gu decreased by 46% (from 50 to 27 transactions).
By nationality, transactions by Chinese nationals decreased by 32% (from 1,554 to 1,053 transactions), and transactions by U.S. nationals decreased by 45% (from 377 to 208 transactions). Chinese nationals accounted for 71% and U.S. nationals for 14% of all foreign housing transactions, similar to last year.
By price range, transactions for houses under 1.2 billion won decreased by 33% (from 2,073 to 1,385 transactions), while transactions for high-priced houses over 1.2 billion won decreased by 53% (from 206 to 96 transactions), showing a relatively larger decline in high-priced houses.
For Chinese buyers, the proportion of transactions over 600 million won was 10% (106 transactions), while for U.S. buyers, it was 48% (100 transactions).
By housing type, among the purchases by Chinese nationals, apartments accounted for 59% (623 transactions), and multi-family houses accounted for 36% (384 transactions). For U.S. nationals, apartments constituted 81% (169 transactions), while multi-family houses were 7% (14 transactions).
The Ministry of Land, Infrastructure and Transport plans to examine whether such foreigners actually reside in their purchased properties, in cooperation with Seoul and other local governments. Starting from January this year, foreigners who have received permission must move into their property within four months of acquisition and maintain residence for two years.
If the residence obligation is not fulfilled, the local city, county, or district office can issue an enforcement order, and failure to comply can result in a fine. If violations persist, permission may be revoked.
Kim Yi-tak, the first vice minister of the Ministry of Land, Infrastructure and Transport, stated, “The decrease in foreign housing transactions signals a reduction in demand that fueled market overheating,” and added, “We will rigorously verify adherence to residency requirements and establish a real estate transaction order centered on actual demand, in cooperation with local governments.”