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South Korea is the fastest growing real estate investment destination for Canadian investors among Asia-Pacific countries, according to data released Wednesday.

Real estate transactions by Canadian investors in Korea from 2016 to 2020, excluding deals under $ 10 million, totaled $ 3.5 billion, according to data from market intelligence firm Real Capital Analytics. This figure was 12.4 times higher than in the previous five-year period, from 2011 to 2015, showing the strongest upward trend among all Asia-Pacific countries.

Korea has overtaken India, whose transactions between 2016 and 2020 increased sevenfold to $ 5 billion, compared to the previous five years. China, which was the third fastest country, saw its real estate transactions from 2016 to 2020 reach 3 billion dollars, twice as many as in the period 2011-2015.

The sudden result was attributable to the $ 2.2 billion acquisition by Toronto-based Brookfield Asset Management of the International Finance Center in Seoul’s Yeouido financial district in 2016. Pension fund manager, l The CPP Investment Board, was another Canadian institution with a presence in the Korean real estate market, according to data from Real Capital Analytics. shown.

This is consistent with the growing presence of Canadian investors in the Asia-Pacific commercial real estate market. Total transaction activity in the Asia-Pacific region from 2016 to 2020 was $ 21.2 billion, up more than 30% from the previous five years. Total transactions by Canadians in Korea represented 16.4% during the 2016-2020 period, compared to 1.73% during the 2011-2015 period.

Real Capital Analytics said more Canadian institutional investors have looked beyond North America to Asia-Pacific countries over the past decade.

The purchase of Australian real estate by Canadian investors halved in the 2016-2020 period compared to the previous five years, while their transaction activities in other Asia-Pacific countries – including China , India, Japan, Korea and Hong Kong – have seen an uptrend.

More and more Canadian investors have opened new offices or expanded their local teams in the Asian region, in order to capitalize on investment opportunities in rapidly developing economies here, said Benjamin Chow, chief analyst. for Asia-Pacific at Real Capital Analytics.

“As a result, the pool of Canadian players active in the region, as well as their negotiating skills and appetites, has grown significantly,” noted Chow.

“Having more people on the ground and a wider range of goals has kept the momentum going even throughout the pandemic. “

Brookfield, Manulife Financial, the CPP Investment Board, the Ontario Municipal Employees Retirement System and BentallGreenOak were the top five Canadian investors in the Asia-Pacific region during the 2016-2020 period. , according to data from Real Capital Analytics.

By Son Ji-hyoung ([email protected])

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