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Koreans’ Overseas Real Estate Purchases Shrink 51% in Q4 from a Quarter Earlier
Real Estate
Koreans’ Overseas Real Estate Purchases Shrink 51% in Q4 from a Quarter Earlier
  • By matthew
  • February 18, 2013, 10:31
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There is a new research out from the Ministry of Strategy and Finance (MOSF) showing that despite a rebound in the U.S. housing market, acquisition performance of overseas property by domestic residents has been slipping since the global financial crisis of 2008.

The report entitled “Trends in acquisition of overseas property by domestic residents” released on February 17 found that domestic residents purchased US$29 million worth of overseas real estate (based on the amount remitted) in Q4 of last year, down some 51% from a quarter earlier.

On an annual basis, amount of real estate purchases last year fell below US$200 million for the first time since 2009 to reach US$192 million, down some 24% from a year earlier.

Numbers have been cut in half since 2008, from US$874 million in 2007 to US$438 million in 2008, then to US$201 million in 2009. After that, the numbers remained at around a mid-US$200 million level - US$251 million in 2010 and US$253 million in 2011.

By purchasing entity, individuals made up 97 percent of all purchases, continuing trends of real estate acquisition led by individuals. Investment purposes, at 71%, still constitute the main reason for purchases.

By region, North America accounted for the bulk of the real estate acquired. The region represented 80 percent, or US$24 million, of all real estate purchased in Q4 of last year. Asian real estate amounted to US$4.6 million, down US$7.5 million from a quarter earlier.