CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Naver

2022 South Korea Market CRE Outlook Report

24/12/2021

South Korea Market Outlook: Investor’s demand remains strong and the shortage of office space continues in 2022.

 

Summary

  1. Office Market Outlook
  • The Asia Pacific office market has shown remarkable resilience and demand is expected to grow in 2022.
  • The Korean office market has been very active in 2021, recording a high absorption rate. In particular, the drop in vacancy has been very significant in the GBD submarket, as technology companies have aggressively expanded their office space needs on the back of rapid growth during the pandemic period.
  • In 2022, new office supply in major districts is expected to hit the lowest level since 2010. The vacancy rate is forecast to continue trending down next year and rents are also forecast to recover.

    2. Investment Market Outlook

  • The Korean investment market has been seeing rapid growth over the past two years. Investor interest has sustained, as the impact of the pandemic in the Korea market has been less severe when compared to other markets.
  • The SK Seorin Building and The Pinnacle Yeoksam was sold at a record high of over KRW39million per pyeong.
  • We see abundant liquidity and strong fundamentals keeping demand for domestic investment high, although total investment volume may hold steady somewhat due to the limited number of high-quality assets now remaining in the market.
  • Logistics market has grown rapidly as the pandemic has accelerated the expansion in e-commerce. Investment volume in the logistics sector has soared since 2017, breaking a new record every year, and the boom in the logistics center sector is forecast to continue into the years ahead.

 

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS