In 2013, the South Korean economy continued its modest recovery during the course of the year and grew by 3.0% year-on-year (y-o-y) to a nominal GDP of KRW 1,428.3 trillion. Gross Nominal Income rose by 4% y-o-y to US$26,205.
The average monthly rent of grade A office space rose slightly by 0.8% to KRW 28.878 (US$26.8) per sq m and the availability ratio decreased by 0.6% quarter-on-quarter (q-o-q) to 11.7%.
Domestic consumption in the fourth quarter of 2013 remained stable and drove GDP growth up 0.8% q-o-q.
According to the Ministry of Land, Infrastructure and Transport, returns on retail property investment rose 0.68% q-o-q to 1.53% in the fourth quarter of 2013.
In the first quarter, the property investment market was inactive compared with the previous quarter. However, it is expected that total volume of investment will increase in the second quarter as some transactions are currently under active negotiation.
Source : DTZ (Groupe UGL)