While commercial real estate investment in Asia Pacific was suppressed for much of last year due to measures to contain the COVID-19 pandemic, sentiment and purchasing activity gradually improved in H2 2020.
In Seoul, commercial real estate investment volume reached KRW 17.5 trillion in 2020, marking a new high and ensuring Korea was one of the few Asia Pacific markets in which transaction activity improved on the previous year.
This year’s survey found that 53% of Korean investors intend to purchase more real estate this year than in 2020, a figure slightly below the Asia Pacific average. 34% of Korean investors plan to spend more than 10% than they did last year, indicating the presence of a substantial volume of capital ready to be deployed into real estate.
The survey identified differences in the strategies, target returns, and preferred sectors among Korean investors compared to their Asia Pacific counterparts. Other key findings include a stronger emphasis on including Environmental, Social, and Corporate Governance (ESG) criteria in investment strategy.