Research & Markets: South Korea Real Estate Report Q2 2012 - Seoul's High-Grade Office Space Is Expected To Provide Tenant-Fr...
March 15 2012 - 6:48PM
Business Wire
Research and
Markets(http://www.researchandmarkets.com/research/1bd466/south_korea_real_e)
has announced the addition of the "South Korea Real Estate Report
Q2 2012" report to their offering.
In late 2011, BMI conducted its latest round of interviews with
in-country sources on the topic of South Korea's commercial real
estate sector. The outlook is subdued for 2012, with our sources
predicting very slow growth across the board. Indeed, concerns over
South Korea's exposure to economic crises in the US and eurozone
and a hard landing in China have been impacting exports from its
vital manufacturing industry. Having said that, the internal
situation may be balanced out by resilient consumer spending amid a
strengthening employment market and planned fiscal spending by the
government in areas such as infrastructure. The real estate
industry, while containing hotspots with promising outlooks and
potential for good returns on investment, is expected to spend 2012
in a rather undynamic mode, with little growth but little loss. The
sector is marked by varying levels of maturity and may sometimes
seem to display contradictory data; eg, a hefty supply of grade A
office space in the Seoul central business district and high
vacancy rates, but stable or increasing rents. In our view, the
real estate industry is simply staying the path until the
macroeconomic headwinds have passed, safe in the knowledge of its
own solid - if not as exciting - long-term potential. Busan and
Daegu are cities with very different stories to Seoul; they are
both somewhat recovering after years of declining economies and
waning traditional industries.
Key Risks
Ailing demand from Korea's largest export partners and a fragile
global economic outlook in 2012 offer little comfort to the
export-dependent economy.
Weakness in the residential building industry will remain a drag
on overall construction industry growth.
Companies Mentioned:
Golden Narae Real Estate Development Investment Trust GS
Engineering & Construction Corporation KOCREF REIT 7 Samsung
C&T Engineering & Construction SK Engineering &
Construction
For more information visit
http://www.researchandmarkets.com/research/1bd466/south_korea_real_e