photo = Yonhap News
It was found that foreigners are sweeping up apartments in small and medium-sized cities in the provinces as they go on so-called ‘expedition shopping’. Areas with favorable development prospects or less regulated areas are mainly targeted. Eight out of 10 apartments sold in one month are even coming out of foreign trade.
According to economic manlab, a real estate information company on the 23rd, Geoje, Gyeongnam was surveyed as the place where foreigners bought the highest proportion of apartments (including sale rights) nationwide in September. This is the result of analyzing the data of the Korea Real Estate Agency based on the city/gun/gu in which more than 100 apartments were traded.
Of the 1,853 apartment transactions in Geoje in September, 1430 were purchased by foreigners, accounting for 77.2% of the total. This was more than double the 29.8%, which is the national standard for foreign buyers. Geoje saw a number of unsold complexes in the aftermath of the shipbuilding industry stagnation for several years.
However, as favorable developments such as Gadeokdo New Airport and Nambu Inland High-Speed Railway (West Gyeongnam KTX) exploded, foreign investment began to flow in large numbers from the second half of this year. The sale right of 84 square meters of exclusive area of e-Pyunhan Sesang Geoje Euro Island in Gohyeon-dong, which was unsold, was attached to more than 100 million won (premium).
Dangjin, Chungcheongnam-do (64.9%), Gyeryong (55.0%), and Asan (51.8%) also had a high proportion of foreigners. When Daejeon and Sejong were grouped into regulated areas, a ‘balloon effect’ appeared, which shifted the buying force to neighboring areas. In Gangwon-do Sokcho (52.0%) and Wonju (51.5%), low-priced apartments with an official price of 100 million won or less were sold to outsiders. Apartments with an official price of 100 million won or less were excluded from the regulation on the acquisition of multiple houses announced in the ‘7/10 measures’ last year.
In small and medium-sized cities in the provinces where foreign investment has entered, apartment prices often surge in the short term. It is pointed out that there are not many side effects, such as local end-users taking on high house prices and jeonse prices when investors leave.
Shim Gyo-eon, a professor of real estate at Konkuk University, said, “If the market price rises a lot, it is a result of the spread of the perception that it is a ‘remaining business’ even if taxes such as transfer tax are paid. there,” he said.
Small and medium-sized cities in ‘unregulated areas’ and concentrated purchase of pre-sale rights
Proprietary period, detergent, etc. glass… Gap investment targets for properties under 100 million won
Cases of foreigners going to ‘expedition shopping’ for apartments in small and medium-sized cities can be found all over the country. ‘Dangjin Centerville Ne Blue 2cha’ (1460 households) in Sucheong-dong, Dangjin-si, Chungcheongnam-do, which received the subscription in July, had a total of 688 sale rights from August to the 22nd of this month. This means that about half of the total number of households has changed hands.
An official from Dangjin D official said, “As the word of mouth spread that the accessibility to the metropolitan area was good, foreign investment came.
The actual transaction price of 59 square meters for exclusive use of ‘Sekyung 3rd car’ in Wonju-si, Gangwon-do, which has a lot of listings under 100 million won, has risen to 130 million won. This is a house type that sold for 95 million won earlier this year. With a few tens of thousands of won, foreign investors flocked to it, as it could be purchased through Gap Investment.
As investment in Seoul and other metropolitan areas becomes difficult due to high-strength regulations, local small and medium-sized cities that are unregulated and have abundant development opportunities are attracting attention. Unregulated areas are advantageous in terms of resale period, subscription qualification, and taxation.
First of all, the limitation period for the resale of pre-sale rights is limited to a maximum of 6 months. Resale is not possible in regulated areas such as Seoul, a speculative overheated district. In addition, after 12 months of joining the subscription account, the first subscription can be made regardless of the head of the household or member of the household, and there is no restriction on re-winning. Jang Jae-hyeon, head of Real Today’s research division, said, “There are many cases where people buy several apartments in the province because they think they can make a profit even after paying the transfer tax.” .
The real estate industry points out that foreign investment disrupts the local real estate market. The reason why foreigners ‘swept away’ apartments is because there are many cases where prices soar in a short period of time. Local residents have to pay high housing costs. In addition, in Cheongju, North Chungcheong Province, there was a side effect of a sharp drop in prices as foreigners left.
Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki announced his intention to take strict measures against market disturbances such as speculation by outsiders at the recent meeting of relevant ministers to inspect the real estate market. The Ministry of Land, Infrastructure and Transport also decided to investigate all low-priced apartment transactions purchased by foreigners from across the country from July last year to September this year. However, it is impossible to prevent normal transactions that pay taxes properly.
Kwon Il, head of the Real Estate Info research team, said, “There is still a lot of perception that there is no better investment destination than apartments with abundant liquidity.
Reporter Jang Hyeon-joo blacksea@hankyung.com
