Foreign investors are demonstrating strong appetite for South Korea’s property market.
According to real estate consultancy Cushman & Wakefield on Thursday, foreign investment in commercial property in Korea nearly doubled to $11.8 billion in the past year to the end of June.
Experts say foreign investors are showing increased interest in buying Korean real estate, despite escalating geopolitical tension, thanks to abundant liquidity and low borrowing costs worldwide.
Foreigners’ property acquisition in Korea stood out in the fourth quarter of last year. Among the high-profile deals were a 2.55 trillion won ($2.25 billion) purchase of the International Finance Center in Yeouido, Seoul by Brookfield Asset Management, a Canada-based alternative asset manager, and Blackstone Group’s acquisition of Capital Tower in Gangnam for 480 billion won. Morgan Stanley also bought a Seoul building from IGIS Asset Management for 216 billion won.
Nearly 30 percent of the 73 office buildings located in key commercial districts are now owned by foreigners, up 11.5 percentage points from 2012, according to Mate Plus, a real estate service provider.
By Yong Hwan-jin
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]