Foreign Property News | Posted by Hnin Ei Khin
As of September 2019, Korea emerged as the major real estate investor in the Asia Pacific region, accumulating 35 percent of the alternative real estate investments made by Asian nations, reported Korea Times, citing a study published on Tuesday.
Based on the data from global real estate services and investment firm CBRE and Korea Institute of Finance (KIF), Korea ranked the highest, followed by Singapore at 20 percent, Hong Kong at 14 percent, and Japan at 10 percent.
In 2017, China accounted for 55 percent of the total investments in the region, followed by Singapore at 17 percent, Hong Kong at 14 percent, and Korea at only six percent.
However, KIF warned its citizens that the rising investments could cause falling returns because of the growing competition. Just this year, the return on investment for office buildings dropped to four percent from seven percent in 2010.
Shyn Yong-sang, a researcher at KIF, encouraged buyers to actively monitor and manage risks on alternative real estate investments.
As of September 2019, the overseas real-estate funds amounted to KRW50.7 trillion (USD43.5 billion), a four-fold increase from KRW12.3 trillion in 2015, according to Korea Financial Investment Association (KOFIA).
They revealed that the sudden increase is consistent with the worldwide investment sentiment that favoured high-yielding product. Data and analytics firm Real Capital Analytics said the real-estate-related global alternative investment surged to USD1,746 trillion this year, which is about four times more than USD446 trillion in 2009.
Ref: Property Report
