Korea Major Report - 2022 Korea Real Estate Market Outlook Mid-Year Review

Despite the re-opening of the economy and the removal of most pandemic-related restrictions, the emergence of new headwinds led to heightened uncertainty in the Korean real estate market in 2022.

This report looks back at the predictions CBRE made at the beginning of the year in our 2022 Korea Real Estate Market Outlook and updates our full-year view in response to recent changes observed in the market.

While our overall forecasts were accurate, rapid inflation, prolonged zero-covid policies, the Russia-Ukraine war, and faster-than-expected interest rate hikes impacted Korea to a stronger degree than we anticipated at the start of 2022.

Steady demand, more cautious decision-making, rising fit-out and construction costs, and expectations for asset price adjustment will characterise the Korean commercial real estate market over the remainder of 2022.