When it comes to buying property abroad the South Koreans know how to flash the cash. In fact Koreans spent $780 million on real estate abroad in 2006, 34 times more than in the previous year.
Blomberg.com reports that the surge followed the relaxation of government controls imposed during the 1997-1998 Asian financial crises. This year, the Finance Ministry tripled the maximum that individuals can spend on overseas investment properties to $3 million.
So why do Koreans love buying property abroad?
South Korean property prices have recently hit the ceiling and value for money is hard to achieve in the region. Koreans clearly view overseas property as bargains too hard to resist when compared to their own real estate. Seoul has become the world’s second-most expensive city after Moscow in 2006, according to Mercer Human Resource Consulting LLC
Koreans are attracted to education abroad and this is another reason why buying a property abroad makes financial sense
Park Sang Hyun, chief economist at CJ Investment & Securities Co. in Seoul, “Demand for study abroad is fuelling demand for overseas property,”
So where is the Korean money going?
The United States is where the smart money from Korea is heading US real estate offers value for money and lower taxes than Korea and is seen as a safe place to invest in property abroad.
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