In 2020, the area and the number of lots owned by foreigners increased in Gyeonggi Province while the foreign population of the province decreased due to the COVID-19 pandemic. With soaring house prices and speculation emerging as a national issue, th...
In 2020, the area and the number of lots owned by foreigners increased in Gyeonggi Province while the foreign population of the province decreased due to the COVID-19 pandemic. With soaring house prices and speculation emerging as a national issue, the province enforced a permission system for real estate acquisition by foreigners.
While absentee owners may lead to land grabbing in urban context, there should be caution on xenophobic sentiments that attribute the failure of stabilizing house prices to ordinary foreigners during the pandemic. In order to make a sound judgement on the issue, a proper quantitative analysis on the spatial characteristics of real estate acquisition should precede.
This research analyzes the spatial dynamics of real estate acquisition in the city of Bucheon by foreigners. Within Gyeonggi Province, Bucheon has been the most prominent city for real estate acquisition by foreigners during the last five years.
The analysis shows that Chinese nationals especially those with Korean ethnicity emerged as the main acquisitors of real estate in Bucheon. The result is contrary to past studies which indicate Americans and Taiwanese as the main acquisitors of real estate in Seoul while the Chinese were treated as tenants of old houses.
According to the Theil index, the spatial distribution of acquisition became even more uneven in both microscale and macroscale. During the COVID-19 pandemic, the distribution has become increasingly concentrated on apartments and officetels around Sosa station, which is the junction between a railroad connecting the cities of Incheon and Seoul, and another railroad connecting Bucheon and the city of Ansan.
Through interpretable machine learning, the apartments and officetels acquired by foreigners were characterized as newly-built stand-alone buildings that were about sixteen-stories tall. The newly enforced permission system was proved to be less effective in Bucheon because most of the acquisitions did not meet the conditions for being subject to the regulation.
This research implies a new formation of Chinatown in the Seoul Capital Area represented by new apartments with Chinese owners, which is different from other Chinatowns discussed in previous research. It focuses on the conversion of the Chinese as simple occupants of space to owners of space in the Seoul Capital Area, although the locations and characteristics of the apartments owned by them may be different from those typically favored by Koreans, such as big complexes in Sang and Sinjung.