The spatial characteristics of global property investment in Seoul: A case study of the office market

As more and more countries liberalise their financial systems, capital has become increasingly mobile. These emerging capital flows and the accumulation of capital are mainly embodied in foreign direct investment. A new component is global property investment which is creating an internationalised office market and distinctive spatial patterns in global cities. Despite the increasing volume of foreign-owned property, as well as the popularity of the facilitating policies for cross-border capital flows into real estate, in both developed and developing countries, there has been little attention to the spatial characteristics of global property investment (GPI). Massive cross-border capital flows, associated with the decision of international property investors, will result in locally intensive changes. Understanding these changes will allow advice to refine and enhance sectoral and urban policy. The primary purpose of this study is, therefore, to explore the characteristics of GPI via the magnitude of the flows, global investors' location choice, links between property markets and office space markets, and government response to these outcomes. Seoul is used as case study because there is a fast growing foreign-owned office property sector along with city's growing integration with the global economy.