Guess which country was Korea’s top source of foreign capital

This Asian country accounted for 63% of total inbound investments in 2020.

According to CBRE, foreign investment in the Korean commercial real estate market reached an estimated US$1.9 billion in 2020, down 24% y-o-y from 2019. 

The decline in cross-border investment was primarily due to the impact of travel restrictions and other measures to contain the spread of COVID-19. Intense competition from domestic buyers, which continue to be supported by abundant liquidity, also inhibited acquisitions by overseas investors.

Here’s more from CBRE:

Many foreign investors nevertheless continue to pursue investment opportunities in Seoul, with 2020 witnessing the completion of several major office and logistics deals. Asian capital accounted for 59% of total foreign commercial real estate investment last year, followed by the U.S. (25%) and Europe (16%).

Among Asian buyers, Singaporean-based investors were particularly active, accounting for 63% of inbound foreign capital and completing several major acquisitions of office properties in Seoul and logistics assets in Greater Seoul. Weaker sources of capital included Hong Kong, which saw a significant fall in purchasing activity in 2020 following an active 2019.

Although the pandemic is now in its second year, the rapid rollout of vaccination programmes and improved medical treatment are expected to underpin a recovery in inbound investment. Respondents to CBRE’s 2021 Investor Intentions Survey named Seoul as the region’s third most attractive cross-border investment destination after Tokyo and Singapore, indicating robust demand among foreign investors for Korean real estate.