Savills Finds Record Logistics Sales in South Korea in 2025

South Korea’s logistics investment market reached historic highs in 2025.

Investment in the Republic of Korea’s logistics market reached 5.7 trillion won (almost $3.8 billion) in 2025, representing a 16.8 percent increase from the previous year, Real Estate Asia reported, citing new data from Savills Korea. Hard asset transactions alone accounted for a record-high 5.2 trillion won (nearly $3.5 billion); that figure does not include forward purchases, which have seen a steady decline since 2023.

Distressed deals fell to 19 percent last year from 33 percent in 2024, according to Savills. Average transaction prices for dry storage assets rose 15 percent year-over-year to an average of 6.2 trillion won ($4.1 billion) per pyeong, or roughly 35.6 square feet. Mixed-use properties that sold below 6 million won ($3,989) per pyeong were largely distressed or faced leasing challenges, particularly in the cold storage sector, according to Savills. Some landlords opted to convert vacant cold storage areas to dry storage to mitigate vacancy risk. Non-distressed mixed-use assets, meanwhile, averaged nearly 7.5 million won ($4,986) per pyeong.

Foreign capital continues to dominate the South Korean landscape, accounting for approximately 68 percent of the total investment volume. Prime assets exceeding 99,000 square meters, or almost 1.1 million square feet, were the primary targets for these international players.

Global investment firms GIC and Brookfield were the most active buyers during the first half of 2025. The second half of the year saw increased activity from KKR, M&G Real Estate and Starwood Capital. KKR was the market leader, acquiring approximately 1.5 trillion won ($998 million) worth of properties, which accounted for 26.5 percent of the total transaction volume. KKR’s acquisitions included the Miyang Logistics Center, Hwaseong Jegi-ri Logistics Center, Kendall Square Maegok DC, and the roughly 4.6-million-square-foot Brookfield Cheongna Logistics Center.

Savills indicated that the South Korean logistics sector is approaching a state of supply-demand equilibrium as new supply begins to slow while leasing demand remains steady. Domestic institutional investors have started returning to the market. This renewed interest from local players is contributing to the overall recovery of transaction pricing for stabilized prime assets, according to Real Estate Asia.

The office market in the country’s capital similarly reached new heights in 2025. The Seoul office market last year attracted a record investment of 6 trillion won (more than $4 billion), according to data from JLL.

— Chris Malone Méndez