South Koreans' foreign property purchases jumped 86% in the first half from a year ago after the country eased rules on buying overseas real estate, central bank data showed on July 24.
South Koreans bought US$602.6 million (RM2.08 billion) worth of property abroad during the first six months of the year, compared to US$323.4 million in the same period of 2006.
The United States, Canada, Singapore and Malaysia were the most popular real estate markets among South Korean buyers.
But a central bank official said growth in overseas real estate purchases would slow in the second half.
"The appetite for overseas property is cooling as the US housing sector has been hit by the subprime mortgage problems and real estate in Southeast Asia is also seen falling," he said.
"And people will look for investment opportunities in the stock market, not property."
South Korea's main KOSPI stock market has risen nearly 40% so far this year, climbing above 2,000 points for the first time on July 24.
Last year, South Korea announced it would loosen rules on the acquisition of overseas real estate by South Koreans both for residential and investment purposes, moves partly intended to ease upward pressure on the won currency.
The country tripled the ceiling on investment in overseas property to US$3 million from US$1 million. - Reuters
