(코리아타운뉴스) Hot Attention in Korean Real Estate

2000 Koreans attened the recent 3 seminars
Return on investment and potential are key factors

Every real estate investment seminar geared towards Koreans seem to be jam-packed with visitors recently.

Around 400 Koreans attended the introduction session for RBG Sky Hotel unit sales in L.A. on March 28 and Orange County on March 30. For intro seminar of the Stanford Hotels and Resorts sales, the event in L.A. attracted approximately 700 Korean investors. The Pyeongchang Ramada Hotel & Suite seminar, over two separate events, also drew somewhere around 700 to 800 people.

The reason behind the popularity of purchasing real estate in South Korea stems from the relatively high return on investment and its potential for growth at an affordable price. For RBH Sky Hotel, the rate for a unit starts at $110,000 and it guarantees an average of 8 percent in return on investment.

For Stanford Hotels and Resorts, a $50,000 investment provides an annual return of 4 percent, while Pyeongchang’s Ramada Hotel & Suite also guarantees an 8 percent return for two years with the starting price for unit at $200,000.

The investors are turning their attention to the Korean market as American real estate guarantees little investment while the starting price for a home is high to begin with.

“Investing in real estate or stocks is something I’ve feared,” said Eric Kim, who visited the seminar for the sale at Sky Hotels and Resorts. “But the recent deals from Korea guarantees decent return and it also comes with potential for further growth in value.”

To better utilize the demand for real estate in Korea, various businesses are coming up with strategies to grow their client base.

“Construction is 90 percent complete, so we’re set to open on July 1,” said New Star Realty chairman Mun-ki Nam, whose business is in charge of the Stanford Hotels and Resorts sales. “This is a project overseen by the H Mart Group, which is the biggest supermarket chain in the U.S., so investors can be assured in their business.”

Nasung Construction’s marketing director Jin-yong Jeong, whose company is the development firm for RGB Sky Hotel, said: “The location is near the Incheon International Airport, so there’s always a high demand among tourists. The price is currently valued at a relatively low price as the land was purchased a long time ago. The return on investment is expected to be stable.”


By Hyunwoo Kim