Compelling Time to Enter the Commercial Property Market
The commercial real estate markets in the United States and Europe are beginning to recover, driven by limited supply after a prolonged construction slowdown during the COVID-19 period. Investors are showing renewed interest in the sector as fundamentals strengthen.
Global Investment Insights from ASK 2025
The Korea Economic Daily hosted the global investment conference ASK 2025 at the Conrad Seoul on October 29–30. The event gathered senior portfolio managers from Korean pension funds and insurance companies to discuss emerging investment strategies in real estate and private credit.
“Asset-backed finance is evolving from a defensive niche into a central pillar of private credit’s expansion,” participants noted, highlighting its growing role in diversified portfolios.
Real estate credit remains attractive to South Korea’s major asset owners. Even as interest rates decline, investors continue to favor the sector for stable returns and inflation resilience.
Market Performance and Transaction Activity
Office transactions in the Seoul Metropolitan Area reached 5.9 trillion won (approximately $4.1 billion) in the third quarter, surpassing 5 trillion won for the second consecutive quarter, according to Savills. The momentum is likely to sustain through the rest of the year.
Strong Returns for Institutional Investors
The National Pension Service (NPS), South Korea’s largest institutional investor, reported record profits this year. A robust rally in domestic equities lifted its year-to-date return above 20%, marking its strongest performance in years.
KIC CEO Park Il Young delivered a keynote address at ASK 2025, emphasizing the importance of innovation and global collaboration in navigating shifting capital markets.
Author’s Summary
The rebound of global real estate, paired with evolving credit markets and strong institutional performance, signals a promising horizon for property and private credit investors in 2025.