The government is restricting speculative housing purchases by foreigners, while overseas regulations on foreign housing purchases are already in place ahead of ours. Canada has completely banned foreign real estate purchases, while Australia requires foreigners to obtain prior approval when buying dwellings.
The Ministry of Land, Infrastructure and Transport announced on 21st that it will designate foreign land transaction permission areas across Seoul, seven districts in Incheon, and 23 cities and counties in Gyeonggi Province. The designation will take effect from the 26th of this month and will last for one year until August 25, 2026.
Lee Sang-gyeong, the first deputy minister of the Ministry of Land, Infrastructure and Transport, said, "This measure is aimed at preventing foreign speculation through the inflow of overseas funds, fundamentally blocking foreign market disturbances and stabilizing housing prices to contribute to the residential welfare of our citizens."
Other countries have already imposed restrictions on foreign land purchases. A notable example is Canada, which has banned the local real estate purchases by individuals or corporations without Canadian citizenship or permanent residency since 2023. This measure was initially set to end this year but has been extended until 2027. If foreigners violate the regulations and purchase real estate in Canada, they face fines of up to 10,000 Canadian dollars (approximately 10 million won), and the purchase is nullified.
In Australia, foreigners need approval from the Foreign Investment Review Board (FIRB) when purchasing dwellings. To protect the existing housing market, foreigners can buy new dwellings, but the purchase of existing dwellings is restricted. New Zealand has also enacted the "Foreign Home Buyers Ban Act" to prevent foreigners from buying dwellings.
Singapore has completely blocked foreign purchases of public housing (HBD) apartments. Only Singaporean citizens and those who have held permanent residency for more than three years are allowed to purchase apartments. Foreigners can buy private dwellings, but an additional 60% tax is imposed, separate from the basic tax. When foreigners buy vacant land, detached houses, etc., prior approval from the government is required under the "Residential Property Act."
The United States allows general foreign real estate transactions. However, purchases of dwellings in security-related areas such as military facilities and ports require review by the Committee on Foreign Investment in the United States (CFIUS). Additionally, when foreigners sell real estate in the U.S., a withholding of 10% of the sale price is deducted by the buyer.