Asia-Pacific Industrial Investment $147.6 Billion: Where Does Korea Stand?

Asia-Pacific real estate markets show recovery. According to JLL, 2025 Asia-Pacific commercial real estate investment reached $147.6 billion, up 12% year-over-year. Savills forecasts additional 7% growth in 2026. Investment concentrates in key markets: Japan, Australia, Singapore, and Korea.

Korea's market status continues rising. Seoul office investment reached a record KRW 21.1 trillion in 2025, and 57% of respondents in CBRE's 2026 Asia-Pacific investor intention survey answered they plan to expand real estate purchases.

Korea's appeal in industrial real estate (logistics and factories) continues growing. Savills analyzes Korean logistics center investment is rebounding driven by foreign-led transactions. Knight Frank also notes Asia-Pacific investors are focusing on Korean yields under 'Hunting for Value' strategies.

However, most investment concentrates in the capital region. As funds flow to Seoul-Gyeonggi prime assets raising prices, investors begin looking to provinces for higher returns. This represents the dual trend of 'flight to quality' and simultaneous 'yield hunting' as CBRE describes.

Gyeongsangbuk-do can be a beneficiary region of this 'yield hunting.' Land costs 30-50% cheaper than capital region, additional 3.55 million ㎡ industrial complex supply plans, and Haeoreum Alliance's 1.83 million economic zone raise investment appeal. Particularly in logistics, data centers, and smart factories that foreign investors show interest, Gyeongbuk's location is likely to be reevaluated.

To attract industrial real estate investment to Gyeongbuk, permit speed and transparency are key. Global investors cite permit delays as their biggest risk.