+
Amid pandemic, Seoul emerges as Asia’s real estate leader
SMART CITIES

Amid pandemic, Seoul emerges as Asia’s real estate leader

Amidst the large scale disruptions that the fatal Covid-19 virus has brought into play, Seoul has managed to rise to the occasion to establish itself as Asia’s real estate leader in such unprecedented times. The capital city of South Korea’s inspiring Covid-19 control tactics allowed it to not only stave off a lockdown but also emerge as Asia’s top market for retail and office property deals.

According to a recent report by Real Capital Analytics, the city played host to office transactions worth an estimated total of almost $9 billion this year through September. In the process, it outranked the region’s former leader, Tokyo, which raked in $7.7 billion, and Shanghai, which mustered a total of $4.8 billion. Additionally, Seoul also secured top rank in the field of retail real estate transactions, with Tokyo and Guangzhou close on its heels.

Real Capital’s report said that while the state of headline investment figures might seem muted, signs of a promising recovery were well underway. Further, the report also added that with the steady reopening of economies, the tally of deals in the current year is comparatively larger with respect to the previous year’s figures.

Compared to 2019, 2020 saw a decline of about 38% in deal-making across the Asia-Pacific region, which is comparatively small and fares well in contrast to startling drops of 43% and 57% in Europe and the United States respectively, where the onslaught of the deadly virus is still at large. Seoul’s effective Covid management protocols allowed the capital city to lead Asia in third-quarter deals with an estimated figure of $6.8 billion, bagging a year over year gain of 22% in the process.

Tireless demand for shopping and office centres as reflected by the Asia data disregard predictions that Covid-19 will trigger irreversible shifts in the favour of e-commerce and remote working conditions. Asia was first where the pandemic first struck and also exited the region first, with the outbreak in South Korea reaching its peak in the early days of March. According to Johns Hopkins University of Medicine’s Coronavirus Resource Centre, even though the population of the region stood at a staggering figure of more than 50 million, it only recorded 26,925 confirmed cases and a total of 474 deaths.

The effective control of the virus in these parts has been attributed to their routine adherence to the mask-wearing protocol and efficient contact tracing, even in congested urban centres. Hit hard by the virus, deal-making in Melbourne and Sydney witnessed a dramatic decline of 61% owing to the lockdowns that these areas imposed. On the contrary, Taiwan saw a deal volume jump of 168% from its previous year. In September, South Korea found itself playing host to a $9.3 billion worth of financial deals, bettering its gross volume of transactions in the fourth quarter of 2019 altogether.

Amidst the large scale disruptions that the fatal Covid-19 virus has brought into play, Seoul has managed to rise to the occasion to establish itself as Asia’s real estate leader in such unprecedented times. The capital city of South Korea’s inspiring Covid-19 control tactics allowed it to not only stave off a lockdown but also emerge as Asia’s top market for retail and office property deals. According to a recent report by Real Capital Analytics, the city played host to office transactions worth an estimated total of almost $9 billion this year through September. In the process, it outranked the region’s former leader, Tokyo, which raked in $7.7 billion, and Shanghai, which mustered a total of $4.8 billion. Additionally, Seoul also secured top rank in the field of retail real estate transactions, with Tokyo and Guangzhou close on its heels. Real Capital’s report said that while the state of headline investment figures might seem muted, signs of a promising recovery were well underway. Further, the report also added that with the steady reopening of economies, the tally of deals in the current year is comparatively larger with respect to the previous year’s figures. Compared to 2019, 2020 saw a decline of about 38% in deal-making across the Asia-Pacific region, which is comparatively small and fares well in contrast to startling drops of 43% and 57% in Europe and the United States respectively, where the onslaught of the deadly virus is still at large. Seoul’s effective Covid management protocols allowed the capital city to lead Asia in third-quarter deals with an estimated figure of $6.8 billion, bagging a year over year gain of 22% in the process. Tireless demand for shopping and office centres as reflected by the Asia data disregard predictions that Covid-19 will trigger irreversible shifts in the favour of e-commerce and remote working conditions. Asia was first where the pandemic first struck and also exited the region first, with the outbreak in South Korea reaching its peak in the early days of March. According to Johns Hopkins University of Medicine’s Coronavirus Resource Centre, even though the population of the region stood at a staggering figure of more than 50 million, it only recorded 26,925 confirmed cases and a total of 474 deaths. The effective control of the virus in these parts has been attributed to their routine adherence to the mask-wearing protocol and efficient contact tracing, even in congested urban centres. Hit hard by the virus, deal-making in Melbourne and Sydney witnessed a dramatic decline of 61% owing to the lockdowns that these areas imposed. On the contrary, Taiwan saw a deal volume jump of 168% from its previous year. In September, South Korea found itself playing host to a $9.3 billion worth of financial deals, bettering its gross volume of transactions in the fourth quarter of 2019 altogether.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code