Korean investors are not in a position to be investing fresh capital into private real estate right now, said Doyle Kim, managing director at Seoul-based private banking group Hana Financial Investment.
Instead, they are dealing with maturing loans following a very active period of real estate investing around five years ago, he told PERE in an interview at the PERE Network Asia Summit, held in Singapore last week.
“Many investors are really suffering [because of] the maturity crisis,” said Kim, citing falling property valuations. “They are really focusing on how to overcome this crisis first.” As such, many will be net sellers and look to offload any “headache projects” as soon as possible so they can make new investments again, he said.
When Korean investors do return to the market, however, which Kim thinks will be toward the end of this year, it will be with a new strategy for a new cycle. “They must go to the global market again, but the type [of investment] will be very different,” he explained.
Watch the video above to hear how Kim expects Korean investors to change their approach to real estate investment going forward.
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