EUCCK Real Estate Forum Starts Tomorrow
More Than 200 Industry Experts Gather for Discussion, Networking
By Jane Han
Staff Reporter
The global economy is crashing, real estate prices are plunging and uncertainties are looming largely, but what does all of this mean to your property investments?
Prospective investors will get the answer to this tricky question at the upcoming real estate seminar hosted by the European Union Chamber of Commerce in Korea (EUCCK), says Lee Jun-ho, the director of the chamber's real estate committee.
``This year has been dramatic for the global property industry, with major economies getting affected by tight financing conditions and struggling equity markets,'' said Lee, ``but not every market and real estate segment has been influenced by the crisis.''
He exemplified the commercial real estate market in Seoul as one example of such an exception, which is supported by recent data of transactions.
According to Jones Lang LaSalle, a global commercial real estate brokerage, the Seoul office market has picked up sales in the first half of 2008, compared to the same time last year.
Vacancy remains below one percent and only a limited supply will be entering the market before 2011, it said of its second quarter property transaction report.
Although underlying demand for occupiers is softening, economic growth forecasts of 4-percent plus for 2008 and 2009 will keep it in positive territory. Decreasing demand is not expected to result in a contraction in net absorption over the next couple of years, thereby keeping the vacancy rate below one percent, forecasted Jones Lang LaSalle.
Aside from commercial property, major development projects like Songdo New City and Woonbook Multi-leisure Complex continue to step up large-scale undertakings, as strong market fundamentals keep the domestic property market generally upbeat.
Co-chairman Kwon Lee of EUCCK added that prospects here remain bright because the country is politically stable and has a stable tax system.
Lee, who is a senior foreign counsel at Kim & Chang, stressed that Korea has emerged as one of the prime investment locations in the Asia Pacific region thanks to its strong economic growth, increasingly favorable business environment and rapid transformation into a truly knowledge-based information society.
``The country's real estate opportunities are estimated to increase both for local developers and foreign investors,'' he said, adding that Korea is constantly taking steps to liberalize its real estate-related laws.
He said the chamber's committee focuses on helping foreign investors get their foot in the door with the necessary support and guidance.
The key work done by the committee is to coordinate meetings, act as a communication channel between EUCCK members and the Korean real estate community and strengthen relations between the two parties, said Lee.
``Real estate practice and laws are unique in each country and Korea is no exception,'' he emphasized. ``The committee provides a forum for presentation and discussion of current key real estate related issues directly affecting the operation and decision making process of members.''
Meet the Experts
The fourth international real estate seminar will be an opportunity to get the lowdown on the latest updates in the property market both here and in Asia, said Lee.
The EUCCK has invited experts from leading real estate companies for interactive discussions and comprehensive presentations, and the one-day seminar will provide insights on market trends and real estate projects in the Gulf region, Korea, Kazakhstan, China, Hong Kong and other markets in Asia.
Government officials will also attend discussion sessions to talk about business opportunities for foreign and local investors, the committee said.
``We provide initial close assistance to our members by giving them necessary information and coordination on important real estate matters,'' said Lee.
Issues cover a variety of fields from tax, finance, foreign exchange and bankruptcy, and are inherent in many companies' day-to-day operations, from landlord-tenant relationships, factory operation and building/office maintenance, he said, adding that the committee invites specialists from related companies and industries for in-depth sharing.
Lee, the director, said participants who attended a half-day seminar that was held earlier this year in March could expect the same quality information or better.
The event received a new record of 24 senior level delegates, up 20 percent form last year's seminar, and it was the only property event in Korea to successfully combine learning and networking opportunities, he said.