South Korea Real Estate Report

Published 23 September 2015

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Quarterly report providing expert analysis, independent forecasts and competitive intelligence on the real estate industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Real Estate Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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South Korea Real Estate Report
Product Price

BMI View: South Korea's highly developed commercial real estate market will continue to benefit from a welcoming business environment and increasing foreign investment. O n the demand side , though, a slowdown in China and faltering private consumption could limit appetite for new space across the board. Nonetheless, the outlook for South Korea's commercial real estate in the longer term is bright, as a result of the country's highly developed retail industry and economic diversification strategies.

Real GDP is set to grow slowly but steadily over our forecast period to 2019, increasing by 2.8% in 2015 before rising to 3.4% a year between 2016 and 2019. This should set to scene for continued stability in the commercial real estate market. Low interest rates will also be supportive to investment. However, risks are weighted to the downside. The major risk is a sharper-than-expected economic slowdown in China, South Korea's largest trade partner. This could cause a fall in export opportunities, as well as a decline in consumer confidence and spending. This fear, as well as rising household debt and a downbeat outlook for private consumption, means demand for commercial real estate will be lacklustre in the medium term.

The capital, Seoul, has a strong commercial real estate market across the board, with significantly higher costs than the other cities that we cover. Seoul's office real estate in particular is expensive, as a result of the large stock of premium quality space in this regional business hub. In Busan and Daegu, meanwhile, the retail market is notable for its healthy growth, leading to high rents for retail space and growth in opportunities in that sub-sector.

Growth in the office real estate market is set to be fairly muted over the medium term, with transactions expected to be mainly in the small and medium end of the market. Seoul will remain the main focus of the country's office real estate market, attracting the most investor interest as...

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BMI Industry View
Operational Risk
Industry Forecast
Office - South Korea - 2015
Table: Office Rental Rates, 2010-2015 (per sq m per month)
Table: Office Rental Yields, 2010-2019 (%)
Retail - South Korea - 2015
Table: Retail Rental Rates, 2010-2015 (per sq m per month)
Table: Retail Rental Yields, 2010-2019 (%)
Industrial - South Korea - 2015
Table: Industrial Rental Rates, 2010-2015 (per sq m per month)
Table: Industrial Rental Yields, 2010-2019 (%)
Residential/Non-Residential Building - Outlook And Overview
Table: Residential and Non-Residential Building Industry Data (South Korea 2013-2018)
Table: Residential and Non-Residential Building Industry Data (South Korea 2019-2024)
Table: Major Projects - Residential/Non-Residential Construction And Social Infrastructure
Macroeconomic Forecasts
Economic Analysis
Table: Economic Activity (South Korea 2010-2019)
Industry Risk Reward Ratings
South Korea - Risk/Reward Index
Table: South Korea Real Estate Risk/Reward Index, 2015
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Table: Population Headline Indicators (South Korea 1990-2025)
Table: Key Population Ratios (South Korea 1990-2025)
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
Table: Population By Age Group (South Korea 1990-2025)
Table: Population By Age Group % (South Korea 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

The South Korea Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's South Korea Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in South Korea.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in the Korean real estate market.
  • Target business opportunities and risks in South Korea through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.