In this month's Asia Pacific Watch we focus on South Korea. This is a country which has maintained a rapid pace of economic and social achievement over the last few decades. According to the IMF, the country has grown to be the world's 15th largest economy in nominal GDP terms (about USD 1.2 trillion), after ranking among the world’s poorest in the early 1960s and among the most war-torn in the 1950s. South Korea is well on its way to attaining the status of a fully "developed economy” in terms of economic development, physical and social infrastructure, and general standard of living. We expect that changing social and economic forces will continue to generate investment opportunities in emerging real estate sectors.
Long-term, Seoul Grade A office will remain the most attractive market in South Korea given its relatively stable tenant demand, despite the weak income growth in the near term. Free Trade Agreements with large economic blocks in the global markets should have positive implications for occupier markets going forward, particularly for the retail and logistics sectors.
Source : CBRE Global Investors