MARCH 2013 - DURATION: 6:38
Justin Kim, Head of Research, Seoul, CBRE
The Korean economy is currently at a low point, but growth is expected to pick up from 2H 2013 onwards. Seoul is expected to see the completion of a large volume of new office supply over the next two years, a trend that will push vacancy up. Net absorption is also likely to be affected by weaker demand for space. Average effective rents will continue to decline as rent-free periods and tenant incentives become more popular. In the investment market, offices remain the primary focus for buyers, with domestic investors now firmly established as key players in the market. Recent trends include firms selling headquarters buildings and an increase in demand for Grade B office assets.
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