In the coming week, thousands of the world’s best winter sports athletes from over 90 countries arrive in Pyeongchang, South Korea, to participate in the 2018 Winter Olympic Games. The local athletes are forecast to perform well and most especially their short-track ice skaters, who have won 21 gold medals out of a possible 48 in this sport in all previous Games. The performance of South Korea’s property markets, on the other hand, has been a mixed bag in recent years, although generally capital values have held up well in spite of falling effective rents in many markets. Domestic investors have been extremely active in the past two years, however the foreign capital flow into Korea’s property market was all downhill: declining to 17% of total transaction volume in 2017 compared to 35% in 2016. Koreans elected Moon Jae-in as their 19th president in May 2017 with the impeachment of Park Geun-hye following an influence-peddling scandal. Recently, icy tensions on the peninsula thawed following the first high-level meeting between North and South Korea in two years. Importantly, talks have expanded beyond participation in the upcoming Winter Olympics to include an agreement to engage in military talks to defuse tensions on the border.
Source : CBRE Global Investors