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.

Next Story
Infrastructure Transport

HMRTC to Extend Metro from Gurugram to Jhajjar

The Haryana Mass Rapid Transport Corporation (HMRTC) is progressing with plans to extend the Gurugram Metro from Basai to Bhadsa in Jhajjar, with the ridership survey expected to be completed by the end of January, according to HMRTC officials. In March, the authority had requested Railway India Technical and Engineering Services (RITES) to conduct a ridership survey, which will play a crucial role in finalising the project. The proposed route, covering 23.1 km from Basai to Bhadsa, will alleviate heavy traffic on this stretch. The ridership survey will determine whether the extension should p..

Next Story
Building Material

Siam Cement BigBloc Construction bags Tata Project’s order

SIAM Cement BigBloc Construction Technologies, a joint venture between Gujarat based BigBloc Construction and Thailand’s SCG International Corporation, has secured a work order from Tata Projects for supply and installation of AAC Panels for India’s first Semiconductor unit of Micron India in Sanand, Gujarat. The work order of approx. 2 lakh square feet is for supply and installation of 100 mm AAC panels for Micron India’s semiconductor factory at Sanand. The work order was finalized after several rounds of meetings, thorough due diligence, and factory visits, including review of mock-u..

Next Story
Infrastructure Urban

Zoomlion Releases World's Tallest Straight Boom Aerial Work Platform

Zoomlion Heavy Industry Science & Technology has released a series of groundbreaking aerial work platform (AWP) products, including the world's tallest straight boom aerial work platform, the ZT82J, with a height of 82.3 m. These innovative products further solidify Zoomlion's leadership in the AWP sector and underscore its commitment to global market development. The ZT82J marks Zoomlion's third instance of setting a world record in straight boom AWP following the 68-meter and 72-meter products. The 82.3-meter AWP boasts a platform amplitude of 34.1 meters, a maximum working load of 454 kilog..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000