Increasing Inbound Investment Volume of Foreign Investors in Seoul
Real estate investment funds are increasingly targeting Asia, and investors' interest in the Seoul property market has been rising, partly because other developed urban markets in the region such as Tokyo and Hong Kong are very competitive.
The impact of US private equity on the Korean real estate market has been expanding with the recent creation of large-scale Asian-focused real estate investment funds. Rising US interest rates are an opportunity for the Korean and Japanese real estate markets, as interest rates are comparatively low. Global investors will likely seek to continue diversifying their portfolio by increasing their investments in Korea. Foreign investors are more aggressive in pursuing value-added and opportunistic strategies than Korean investors. They are also actively expanding their local network among domestic asset management companies to enhance their ability to source deals.