Ms. Kim in her 50s plans to go on a field survey to New York to see a studio condominium in Manhattan, New York, and feel the real estate market sentiment there. The market price of the condo that Kim is interested in is currently at 1.3 billion won, almost equivalent to the average sales price of an apartment in Seongdong-gu, Seoul in June. The monthly rent price of the New York condominium is around 5.8 million won, up by 40 percent compared to the previous year. Kim said he would prefer buying a condo in the U.S. instead of buying an additional apartment in Seoul, considering taxes and profitability.
Lee in her 50s, living in Seoul, went to New York with her daughter in July to look for a house where her two children attending college nearby would stay from September, when the new semester begins. Lee had a look around a 69.4 square meter studio in Brooklyn, the U.S., with a market price of 1.4 billion won. The monthly rent of this condo rose from 3 million won two years ago to 6 million won recently. “The price is hardly different from an apartment in Gangbuk, Seoul,” said Lee. “I am thinking about buying one in the U.S. and earn rent fees even after my children graduate from college.”
The investment in real estate overseas, which was practically halted during the COVID-19 pandemic, is soaring again recently. As the real estate market in South Korea has been cooling down since the end of last year, after four to five years of boom, not only the haves but also ordinary people who are interested in real estate investment are heading for overseas.
Many investors of overseas real estate are interested in the U.S. property market, where there are less regulations and consistent demand to back up stable profitability. Megacities such as New York have grown in demand for real estate, with rising rent prices. This is due to the return of workers and students back to the city with the slowdown of the COVID-19 pandemic.